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Month: April 2017

Dow 30 Stock Roundup

Dow 30 Stock Roundup

The index increased significantly over the week following strong gains during the first two trading sessions. The index surged on Monday following the victory of centrist candidate Emmanuel Macron in the first round of the French presidential election.

The index advanced by an identical margin on Tuesday, following the release of strong earnings reports and as expectation for possible tax reform grew. The Dow slipped on Wednesday following the release of Trump’s outline for tax reform and only managed to inch up on Thursday.

The index surged 1.1% on Monday following the victory of centrist candidate Emmanuel Macron in the first round of the French presidential election. Shares of JPMorgan Chase & Co (NYSE:JPM). JPM JPM and Goldman Sachs (NYSE:GS) surged 3.5% and 2.9% respectively which boosted the Dow. Meanwhile, investors kept a close watch on quarterly earnings results with tech majors scheduled to report later in the week.

The index advanced by 232.23 points, or 1.1% on Tuesday on Tuesday, following the release of strong earnings reports and as expectation for possible tax reform grew. Earnings for the Dow were particularly strong, with four of its five components exceeding expectations. The Nasdaq closed above 6,000 for the first time ever since its inception in 1971. Meanwhile, sales of newly-constructed homes in March increased 5.8% above its revised February rate.

The index lost 0.1% on Wednesday following the release of Trump’s outline for tax reform. The plan promised to slash the top income tax rate from 39.6% to 35%. The new administration has also proposed to reduce the corporate tax rate from 35% to 15% along with an abolishment of the estate tax. Investors were disappointed as they had expected some more details about the tax-reform package. Meanwhile, market watchers kept a close watch on quarterly earnings results.

The index inched up marginally on Thursday after technology shares experienced gains. Meanwhile, energy shares experienced a notable fall following concerns over increasing U.S. production and the restart of Libya’s big Sharara oil field upset oil market watchers. Lack of details in President Donald Trump’s tax plan unveiled on Wednesday also pared some gains for the broader market.

 

Nasdaq closes at a record high

Nasdaq closes at a record high

The Dow Jones industrial average and the S&P 500 struggled to hold opening gains, while the tech-heavy Nasdaq composite closed at a record high.

Comcast, PayPal and Amazon.com were among the greatest contributors to gains in the Nasdaq.

Ahead of the open, NBCUniversal parent Comcast reported better-than-expected quarterly profit of 53 cents per share and revenue also above forecasts. Shares climbed nearly 4 percent, tracking for their best day since Feb. 3, 2016

Information technology was among the top S&P 500 performers, while energy was the worst, dropping more than 1 percent as oil prices fell about 2 percent on oversupply concerns.

“It’s policy grabbing the headlines but the earnings still drive the market and the matter of the fact is, the earnings have been pretty good,” said JJ Kinahan, chief strategist at TD Ameritrade.

Technology, a key part of the so-called growth trade, has led the U.S. market rally so far this year.

The major U.S. stock indexes closed marginally lower Wednesday, holding within 1 percent of their intraday highs, after the announcement of President Donald Trump’s tax plan. Top officials called the proposal the “biggest tax cut” in U.S. history but remained vague on highly anticipated details such as the tax rate on repatriation of overseas profits.

The Dow Jones industrial average closed 6.24 points higher, or 0.03 percent to 20,981.3. Boeing and Home Depot had the greatest positive impact, while DuPont and Caterpillar contributed the most to losses.

The S&P 500 rose 1.32 point, or 0.06 percent, to 2,388.77, with consumer discretionary and information technology leading five sectors higher and energy the greatest laggard.

The Nasdaq composite rose 23.71 points, or 0.39 percent, to 6,048.94.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower at 10.37.

About four stocks declined for every 3 that advanced on the New York Stock Exchange, with an exchange volume of 1 billion and a composite volume of 4.077 billion at the close.

U.S. light crude ended Thursday’s trade 65 cents, or 1.3 percent, lower at $48.97, having fallen to a fresh four-week low.

Gold futures for June delivery climbed $1.90 to $1,266 an ounce.

 

S&P 500 Futures Slow-Mo, Up 1.9% In Two Day’s

S&P 500 Futures Slow-Mo, Up 1.9% In Two Day’s

When it comes to the S&P 500 futures (ESM17:CME), there are times when there is a lot to talk about, and then there’s not. Yesterday was most definitely the latter. After a two day 1.9% rally, things started out slow, and then they ended slow. I generally have a lot to say about the days ups and downs, but yesterday was a lot more up than down. The ES traded all the way up to 2369.25 then sold off a little on the close. The main thing about yesterday trade was again the lack of trading volume.

The big news that everyone was talking about was the Nasdaq Composite topping 6000. Yesterday’s surge in technology stocks outperformed all the other indices. It was during the bubble back in 2000 that the tech laden Nasdaq traded above 5000. As of yesterday’s close, the broader S&P 500 is up +6.7% on the year, while technology stocks in the S&P are up 14%, and the Nasdaq Composite is up 12%.

Yesterday, after a bid going into the open, the S&P 500 futures opened the 8:30 am cst cash session at 2378.50, up 8.25 handles. From there the ESM made a low at 2377.50 before rallying up to 2387.00 just after 9:00 am cst, two ticks from a perfect 10 handle rule, and then retraced back to 2382.50 just before noon. The rally continued going into the final part of the trading day, as the futures pushed up to a new high at 2389.25, up 19 handles at that point. The futures fell back down to 2383.25 going into the closing minutes and settled the day at 2385.00, up 14.75 handles, on an MOC that was absolutely flat

Nasdaq Moves Above 6000: 4 Great Top-Ranked Tech Choices

Nasdaq Moves Above 6000: 4 Great Top-Ranked Tech Choices

The Nasdaq breached a major barrier on Tuesday to hit the 6,000 mark for the first time ever. Strong earnings results from several major companies was one of the factors which helped the tech heavy index touch this key level.

The index has crossed this milestone nearly 17 years after breaching the 5,000 mark. The previous record came during the heydays of the dotcom boom, in Mar 2000. Subsequently the bubble popped for tech stocks, much like their fate during the recession of 2008.

President Trump’s proposals to stimulate the economy were also powering the index upward on this day. Trump is expected to unveil a new tax plan this week, and the opportunity to bring back large sums of cash stashed abroad looks particularly attractive to tech majors. Picking tech stocks with strong fundamentals looks like an attractive proposition at this point.

On Wednesday, the Dow also surged by more than 200 points due to a stellar earnings show of several major components. Four of its five components reporting earnings on this day exceeded expectations, which include the likes of Caterpillar (NYSE:CAT) , DuPont (NYSE:DD) and McDonald’s (NYSE:MCD) . For the Nasdaq, however, the day’s gains of around 41 points were relatively milder despite the fact that it crossed a major milestone.

The success of these companies and consequently the index itself can be attributed to how certain tech trends have come to dominate the collective global mindscape. The rising popularity of smartphones, e-commerce, social networks and cloud computing have also fueled the index’s rise. That this has continued into 2017 is evident from the fact that the Nasdaq is currently up nearly 12% year to date.

Gold loses its glitter as French election worries ease

Gold loses its glitter as French election worries ease

Gold prices slumped on Monday, as investors pulled out of safe-haven assets such as gold, after pro-European candidate Emmanuel Macron won the first round of the French presidential election.

Gold for June delivery on the Comex division of the New York Mercantile Exchange dipped $12.27, or 0.95%, to $1,276.74 a troy ounce by 13:49 EDT.

Gold suffered its biggest decline in over a month, falling more than 1%, after polls indicated Mr Macron would emerge victorious against anti-EU candidate Marine Le Pen in the run-off vote, scheduled for May 7.

The slump in gold prices, however, was capped by dollar weakness and rising geopolitical tensions.

The U.S. Dollar Index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.61% to 99.05 by 13:45 EDT.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A dip in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand.

Meanwhile, North Korea stoked geopolitical tensions, after the Kim Jong-un led nation said on Sunday that it was ready to sink a U.S. aircraft carrier, as two Japanese navy ships joined a U.S. carrier group in the western Pacific.

Elsewhere, investors look ahead to details on President Donald Trump’s tax reform plan. President Donald Trump said Friday, he will unveil a tax plan on “Wednesday or shortly thereafter” that includes a “massive tax cut” for individuals and businesses.

Other precious metal failed to capitalise on the slump in the dollar, as platinum fell 1.60% to $962.05 while silver futures dipped 0.05% to $17.93 a troy ounce.

Natural Gas slumped 0.63% to $3.173 while copper rose 0.55% to $2.565.

Euro holds gains after French election rally, yen weakens

Euro holds gains after French election rally, yen weakens

The euro held gains on Tuesday after a relief rally triggered by the first-round results of the French presidential election, while the safe haven yen weakened amid an ongoing uplift in risk appetite.

EUR/USD was up 0.18% at 1.0890 by 07.17 GMT, not far from Monday’s peak of 1.0918, the highest level since November 11 after centrist former economy minister Emmanuel Macron won the first round of French presidential elections.

Polls, which were largely accurate in predicting the first round result, have indicated that Macron will comfortably beat euro skeptic nationalist Marine Le Pen in the runoff vote on May 7.

The dollar pushed higher against the yen, with USD/JPY rising 0.48% to 110.29.

Markets showed little reaction after North Korea conducted a massive live-fire drill on Tuesday amid heightened geopolitical tensions with the U.S.

Investors were also eyeing events in Washington ahead of a looming deadline to avoid a government shutdown and ongoing uncertainty over economic policy.

U.S. President Donald Trump said Friday that a “big announcement” was coming this Wednesday on overhauling the U.S. tax code. An administration official said on Saturday that the announcement will consist of “broad principles and priorities”.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 98.89, holding above the one-month low of 98.70 set on Monday.

Sterling was slightly higher against the dollar, with GBP/USD ticking up 0.13% to 1.2809.

Meanwhile, the Canadian dollar fell to the lowest levels in four months after the U.S. Commerce Department said it will impose new anti-subsidy duties averaging 20% on Canadian softwood lumber imports.

USD/CAD was last up 0.48% at 1.3569, the most since December 28.

 

Dollar advances but remains on track to post weekly loss

Dollar advances but remains on track to post weekly loss

The dollar rose against a basket of major currencies on Friday, buoyed by the release of bullish housing data while the euro dipped ahead of the first round of the French presidential election.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.15% to 99.85 by 18:01 EDT

The dollar remained on track to post its second consecutive week of losses, despite data showing sales of previously owned homes in the U.S. hit a ten-year high in March.

The National Association of Realtors said Friday, existing home sales rose 4.4% in March from the previous month to an annualised pace of 5.71m units, which confounded economists’ estimates of a 2.5% gain.

EUR/USD traded at $1.0688, down 0.27%, while EUR/GBP dipped 0.11% to 0.8357, as the upcoming French presidential election overshadowed better than expected data French manufacturing data.

Investors grew concerned about the possibility of strong results for Marine Le pen and Jean-Luc Melenchon at the first round of French presidential election, scheduled for Sunday, April 23.

According to Opinion-Orpi’s daily poll of voting intentions, centrist candidate Emmanuel Macron remained a strong favourite to emerge victorious from the first-round of votes – market probabilities predict that Mr Macron would garner 23% of the vote.

Meanwhile, GBP/USD slipped 0.13% to $1.2795, after bearish retail sales data weighed on upside momentum.

USD/JPY traded at 108.99, up 0.31%, while USD/CAD rose by 0.30% to $1.3512.

Dow 30 Stock Roundup

Dow 30 Stock Roundup

The index experienced a volatile week, guided by geopolitical events, earnings and oil prices. Easing geopolitical concerns over the weekend boosted the index on Wednesday. However, the index declined on Tuesday following disappointing earnings releases from two of its major components.

A fall in energy prices led to further losses on Wednesday. Ultimately, bullish earnings and encouraging comments from the government helped the index to end with gains on Friday.

he Dow declined on Friday, losing 0.7% following the deployment of Mother of ll Bombs’ (MOAB) on ISIS tunnels in Afghanistan. Investors, meanwhile, remained concerned on tensed relationship between U.S. and Russia following U.S. air strike in Syria and escalating tension between U.S. and North Korea. Investors also remained focused on corporate earnings results.

For the week, the index declined by 1%. During the week, the benchmarks suffered a setback after rise in geopolitical tensions. Trump’s comment on dollar valuation also had an adverse impact on the investor sentiments which eventually led the benchmarks to finish in the red. The weekly first-time jobless claims declined in the last week, falling to 234,000. Meanwhile, Trump’s remarks on revamping the Dodd-Frank law helped stocks pare losses.

Futures point to higher open on Wall Street as Dow hopes to end losing streak

Futures point to higher open on Wall Street as Dow hopes to end losing streak

U.S. stock index futures pointed to a higher open on Thursday morning after the Dow Jones industrial average lost more than 200 points over the last two days.

The Dow has closed lower in five of the past six sessions. Wednesday’s fall came after IBM’s sales fell for the 20th straight quarter on a year-over-year basis.

On the data front, Thursday will see initial jobless claims and the Philadelphia Fed index released at 8:30 a.m. ET, with leading indicators set to come out at 10:00 a.m. ET.

On the earnings front Travelers, Verizon, Bank of NY Mellon, Blackstone and Imax are among companies set to report before the bell on Thursday. Visa and Mattel are set to report after the bell.

In Europe, the pan European Stoxx 600 Index was around 0.12 percent higher on Thursday morning. In Asia, China’s Shanghai Composite was little changed, up 0.06 percent, and the Nikkei 225 in Japan closed flat, down 0.01 percent.

In oil markets, Brent crude traded at around $53.21 a barrel on Thursday morning, up 0.53 percent, while U.S. crude was around $50.62 a barrel, up 0.36 percent.

Dollar flat as U.S

Dollar flat as U.S

The dollar was mostly flat Tuesday ahead of U.S.-Japan talks on trade and Korean peninsula tensions.
The dollar index was up 0.02% at 02:45 ET at 100.22. It rose 0.17% to 109.09 yen.
U.S. VP Mike Pence is due to meet with Japan PM Shinzo Abe and Finance Minister Taro Aso.
Pence said U.S. patience with North Korea was running out after another failed missile test by Pyongyang.
Treasury Secretary Steven Mnuchin said Monday he favors a strong dollar over the longer term.
Longer-dated U.S. Treasury yields fell; 10-year at 2.24%.
The euro was steady above $1.06 ahead of first round of the French presidential election Sunday.
The race among the four main candidates remains tight.