Sun, 22nd January 2017

Anirudh Sethi Report


Archives of “US Market” Category

Overnight US Market :Dow closed +95 points.

Stocks snapped their losing streak Friday as Donald Trump took the oath of office for president of the United States.

The Dow Jones industrial average closed up 95 points, or 0.5%, to 19,827 Friday, preventing what would have been the sixth straight down day in a row. The gains pushed the Dow back into the plus column for the year.

The Trump rally had been losing its gusto before the inauguration as investors worried that policy changes when the administration began might be less stimulative than hoped. All three major market measures, the Dow, the Standard & Poor’s 500index and the Nasdaq Composite, are down 0.3%, 0.2%, and 0.4%, for the week, respectively.

That’s why the strength Friday came as a relief. The Standard & Poor’s 500 index was up 0.3% to 2,271, just shy of its record closing high of 2,276.98 notched Jan. 6. The Nasdaq composite index was up 0.3% to 5,555 as it moved back closer to its record close of ,5,574.12.

Despite Friday’s gains, it was overall a negative week for stocks as investors fretted over what Trump might say in his inauguration speech regarding trade and government spending. Investors have been trying to price in the positives of lower tax rates and fiscal stimulation in the form of government infrastructure projects but also the negatives of trade restrictions and tariffs.

Such uncertainty is a reminder to investors that trying to time this kind of change is perilous.

The yield on the 10-year Treasury note was stable at 2.47%. The recent rise in Treasury yields has moderated lately. Treasury rates hit their highest point over the past 12 months on Dec. 27 at 2.56%. Treasury yields have been generally rising since July 2016 as investors expect inflation to increase. The yield on the 10-year has intensified as investors prepare for President Trump’s government spending plans, which are likely to increase the country’s level of debt.

Overnight US Market :Dow closed -22 pts

U.S. stock indexes closed mixed Wednesday as the S&P 500 entered its most listless stretch of trading in more than three years. Bond yields and the dollar resumed their moves higher.

The Dow Jones industrial average fell 22.05 points, or 0.1%, to 19,804.72 as the blue-chip index notches its fourth straight day of losses.

The Standard & Poor’s 500 index rose 4.00 points, or 0.2%, to 2271.89. Wednesday is the ninth straight day where the index has swung by less than 0.4%, up or down. The last time that happened was in July 2013.

The Nasdaq composite gained 16.93, or 0.3%, to 5555.65.

Benchmark U.S. crude oil fell $1.40 to settle at $51.08 a barrel. Brent crude, the international standard, fell $1.55 to close at $53.92.

Overnight US MARKET :Dow closed -59 points.

Investor skittishness over coming policies under soon-to-be-president Donald Trump just days before his inauguration put stocks in the red Tuesday and pushed the Dow down for a third straight session.

Also haunting the market was another weak day for bank stocks, a sector that had performed strong at the start of the so-called “Trump rally” after Election Day but is running into profit taking. Shares of Morgan Stanley (MS) were down nearly 4% despite posting its best fourth-quarter since the financial crisis, while Goldman Sachs (GS) fell 3.3% and Citigroup (C) tumbled 2.1%.

The Dow Jones industrial average closed down 59 points, or 0.3%, to 19,827, or roughly 175 points shy of 20,000. At its low point, the Dow was down more than 110 points.

Markets were reacting to Trump comments in the Wall Street Journal suggesting that the U.S. dollar is “too strong” and could hurt U.S. multinationals. The president-elect also questioned an alternative tax reform plan being discussed by Republicans in the House of Representatives. A strong dollar hurts sales and earnings of U.S. companies that do a lot of business abroad.

Trump’s comments, not unlike some of his tweets that have caught investors by surprise on individual companies, created fresh uncertainty about what policies will actually be enacted once Trump takes office after Friday’s inauguration. Trump’s latest comments were viewed as new information by Wall Street.

The Standard & Poor’s 500 index closed down almost 7 points, or 0.3%, to 2267.89, while the Nasdaq composite fell 0.6% to 5538.73.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.329%.

Overnight US Market :Dow closed -5 points.Nasdaq Hits High

Stocks ended mostly up Friday, with the Nasdaq hitting a new closing high but the Dow dipping a few points below break-even after coming within about 50 from the psychologically-important 20,000 level.

The Dow Jones industrial average lost 5 points, less than 0.1%, to finish at 19,885.73.

Meanwhile, the Standard & Poor’s 500 index climbed 0.2% and the Nasdaq composite index gained 0.5% to its record close of 5574.12. The Nasdaq has moved higher for eight of the past nine sessions.

Three major U.S. banks reported quarterly results early Friday that beat Wall Street’s forecasts. JPMorgan Chase(JPM) added 0.6%, while  Bank of America(BAC) rose 0.4%. Wells Fargo(WFC)  rose 1.24%.

A jump in bond yields and interest rates also helped give lenders a lift. The yield on the 10-year Treasury note rose to 2.39% from 2.36%  late Thursday.

Traders got a batch of encouraging news on the U.S. economy Friday. The Commerce Department said retail sales rose 0.6% in December as online shopping and auto sales increased. Separately, the Labor Department said a gauge of producer prices, which tracks price changes before they reach consumers, rose 1.6% in the 12 months ended in December. That’s the biggest 12-month gain since September 2014.

Benchmark crude oil was down 68 cents, or 1.3%, at $52.33 a barrel in New York. Brent crude, which is used to price oil sold internationally, was down 56 cents, or 1%, at $55.45 a barrel in London.

Overnight US Market :Dow closed -63 points (Intraday was down 180 pts )

Stocks dipped Thursday but finished off early, sharp lows, giving back  gains from the day before.

The Nasdaq composite, off 0.3%, snapped a seven-day winning streak and posted its first loss of 2017.

Losing as much as 180 points earlier, the Dow settled for a 63-point loss, 0.3% lower, to 19,891 even. The S&P 500 slipped 0.2%.

Financial, industrial and technology stocks were down the most, while phone company and real estate stocks edged higher. Investors were turning their focus to the next wave of corporate earnings reports in the weeks ahead.

Banks and other financial companies were down as the yield on the 10-year Treasury note fell. Lower yields mean lower interest rates on loans and lower profits for banks. The yield on the 10-year Treasury slipped to 2.35% from 2.37% late Wednesday.

Benchmark crude oil finished up 76 cents, or 1.5%, to $53.01 a barrel in New York.

In Europe, Germany’s DAX ended down 1.1%, while France’s CAC 40 lost 0.5% despite new data showing eurozone industrial production jumped 1.5% in November. Britain’s FTSE 100 ended flat. In Asia, Japan’s benchmark Nikkei 225 dropped 1.2%. Hong Kong’s Hang Seng dipped 0.5%, while Australia’s S&P/ASX 200 slipped 0.1%. South Korea’s Kospi bucked the trend to rise 0.6%.

Overnight US Market :Dow closed +99 points. 46 pts short to cross 20k;Nasdaq at new high

Stocks ended higher Wednesday — and the super-hot Nasdaq notched another new high — in a volatile session that saw sharp swings after President-elect Donald Trump met with the press in a news conference for the first time in six months.

The Dow Jones industrial average climbed 99 points, or 0.5% to 19,954.28, while the S&P 500 ended up 0.3% to about a point and half shy of its record closing high of 2276.98.

It was the seventh winning session in a row for the Nasdaq composite, which gained 0.2%. It notched a new closing high of 5563.65, a dozen points above the previous record set the day before.

Health care stocks got hit after Trump criticized the industry moving production overseas as well as the bidding process for drugs. Energy stocks continued their strength as oil prices headed higher.

The health care sector was the biggest loser among the S&P 500 sectors. Trump said the government has to create new bidding procedures for the pharmaceutical drug industry “because they’re getting away with murder.” The remarks sent the S&P health care sector down 1.7%. Several pharmaceutical companies slumped, with Endo International (ENDP) falling 9%, the biggest decliner in the S&P 500. Perrigo (PRGO) lost 7% and Mallinckrodt (MNK) tumbled 7%.

Energy stocks were the biggest winners as oil prices jumped. Benchmark U.S. crude rose rose $1.43, or 2.8%, to $52.25 a barrel in electronic trading. Shares of Exxon Mobil rose 0.8%.

Bond prices rose after Trump’s news conference, sending the yield on the 10-year Treasury note down to 2.37% from 2.38% Tuesday.

Overnight US Market :Dow closed -32 points. Nasdaq hits new high

Stocks ended mixed Tuesday as the Nasdaq rose for a sixth straight day to a new all-time high.

The Dow Jones industrial average, down 0.2%, slipped 32 points further from the never-reached 20,000 milestone, settling at 19,855.53.

Climbing 0.4% was the Nasdaq composite, up 20 points to its new closing high of 5551.82.

Interestingly enough, in the manner of a tossed coin landing on its edge, the S&P 500 finished exactly flat.

Oil prices gave up early gains and turned lower as U.S. benchmark crude dropped 1.4% to $51.30 a barrel in electronic trading on the New York Stock Exchange. It fell $2.03 on Monday.

Bond prices were little changed as the yield on the 10-year Treasury note held steady at 2.37%.

Overnight US Market :Dow closed -76 points.

Stocks closed mostly lower Monday, weighed down by a slide in oil and natural gas companies as the price of crude oil and other energy futures fell. Utilities were also among the big decliners, while health care stocks were headed for the biggest gain. The Nasdaq composite held on to a tiny gain, on course to close at a new high.

The Dow Jones industrial average fell 76.42, or 0.4%, to 19,887.38 as the blue-chip index retreated further away from the 20,000 milestone pulled back from 20,000. The Standard & Poor’s 500 index slid 0.4%  to 2268.90. The Nasdaq composite index rose 0.2% to close at a record 5531.82.

Several energy companies were down as crude oil prices veered lower. U.S. benchmark crude oil fell 3.8% to $51.96 a barrel in New York.

Several corporate deals were announced Monday:

• Surgical Care Affiliates surged 16% after the surgical care center operator agreed to be acquired by UnitedHealth for $2.3 billion in cash and stock. The deal comes as UnitedHealth, the nation’s biggest health insurer, looks to expand its Optum health business. UnitedHealth slipped 0.3%.

• Merrimack Pharmaceuticals rose 1.4% on news the drugmaker is selling its first approved drug, a pancreatic cancer treatment called Onivyde, to French drugmaker Ipsen in a deal worth at least $575 million.