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Wed, 22nd February 2017

Anirudh Sethi Report

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Archives of “US Market” Category

Overnight US Market :S&P up 0.60%. Nasdaq up +0.44%. Dow up 0.56% (New High continue…)

S&P up 0.60%.  Nasdaq up +0.44%. Dow up 0.56%

The US stock is opening the holiday shortened week with solid gains.  All the major indices are closing at record levels.

  • S&P is up 0.60% and closes near the high at 2366.71. The index closes at 2365.38.
  • Nasdaq is up 0.47% – also near high for the day levels
  • Dow is up 116.76 to close at 20742.11. Remember when breaking 20,000 was such a challenge?

In the US debt market today:

  • 2 year note 1.2067%, +1.8 bp
  • 5 year note 1.9199%, up 1.8 bp
  • 10 year note 2.429%, up 1.4 bp
  • 30 year bond 3.039%, up 1.6 bp

US stock valuations highest since 2004

For those worried Wall Street may be getting ahead of itself, what with consecutive records for its major indexes throughout the week, there is another data point to worry about.

The forward price-to-earnings ratio on the S&P 500 hit 17.6, the highest level since 2004, according to FactSet.

FactSet said:

Back on December 31, 2016, the forward 12-month P/E ratio was 16.9. Since this date, the price of the S&P 500 has increased by 4.8% (to 2349.45 from 2238.83), while the forward 12-month EPS estimate has increased by 0.5% (to $133.49 from $132.84).

Thus, the increase in the “P” has been the main driver of the increase in the P/E ratio to 17.6 today from 16.9 at the start of the first quarter.

It is interesting to note that analysts are projecting record-level EPS for the S&P 500 for Q2 2017 through Q4 2017. If not, the forward 12-month P/E ratio would be even higher than 17.6.

Overnight US Market :Dow closed +4 points.New High Continues

It wasn’t pretty, but the Dow Jones industrial average did it again Friday, hitting a new high.

The S&P 500 and Nasdaq hit new highs as well.

Investors appeared ready for a pause in the market rally that pushed major indexes to new record highs this week, with stocks opening lower.

The Dow Jones industrial average lingered in negative territory nearly the entire day — except for the final moments of trading, when a steady afternoon climb sent it just over even-Steven, for a tiny gain of 4 points. But the 0.02% climb was good enough to put the blue chips at an all-time closing high of 20,624.05.

Meanwhile, the Nasdaq composite charted a less-dramatic trajectory, turning positive in early trading and staying there, ending up 0.4% to its new all-time closing high of 5838.58.

The S&P 500 rose 0.2%, up 4 points to its closing high of 2351.16.

All three major indexes notched weekly gains of more than 1%

Oil prices gained as benchmark U.S. crude climbed 4 cents to $53.40 a barrel in New York.

Overnight US Market :Dow closed + 8 points.

Stocks finished mixed Thursday, with the Dow inching up to a new all-time closing high as the Nasdaq and S&P 500 pulled back from their record closes set Wednesday.

The Dow Jones industrial average rose 8 points, less than 0.1%, to 20,619.77.

Losing a little less than 0.1% each were the Nasdaq and the S&P 500, which both snapped seven-day winning streaks.

Benchmark U.S. crude gained 25 cents to $53.36 per barrel. The contract finished 9 cents lower on Wednesday.

On Wednesday, reports of stronger retail sales and inflation showed that the U.S. economy was stronger than expected. Consumer prices rose 2.5% in January from a year earlier, the highest rate since March 2012. The data give the Federal Reserve more encouragement to raise interest rates, and economists said the possibility is increasing that it may happen at the central bank’s next meeting in March. While higher rates can weigh on growth, the confidence pushed U.S. stock indexes to new highs.

Overseas, Britain’s FTSE finished down 0.3% and France’s CAC 40 fell 0.5%. Germany’s DAX slipped 0.3%.

Overnight US Market :Dow closed up 107 points.Crosses 20600.S&P 500 -Nasdaq Hitting New High

Stocks jumped to new record highs and the Dow shot past 20,600 on Wednesday after more reports showed the U.S. economy continues to strengthen.

The Dow Jones industrial average climbed 107 points, up 0.5% to a new closing high of 20,611.86.

Also building upon their record highs set in the previous session were the S&P 500 and Nasdaq composite, up 0.5% to 2349.25 and 0.6% to 5819.44, respectively.

The encouraging data could push the Federal Reserve to raise interest rates more aggressively from the record lows marked during the Great Recession.

Wednesday’s economic reports give the Federal Reserve more encouragement to raise interest rates, and economists said the possibility is increasing that it may happen at the central bank’s next meeting in March. Retailers had stronger sales in January than economists expected, and inflation at the consumer level was the highest in years. Consumer prices rose 2.5% in January from a year earlier, the highest rate since March 2012.

Fed Chair Janet Yellen said in testimony before a Congressional committee that the strengthening job market and a modest move higher in inflation should warrant continued, gradual increases in interest rates, echoing her comments from a day earlier. The central bank raised rates in December for just the second time in a decade, after keeping rates at nearly zero to help lift the economy out of the Great Recession.

Overnight US Markets :Dow closed + 92 points -Hits New High

Stocks shook of earlier losses and ended higher Tuesday, led by a rise in bank stocks as major indexes pushed further into record territory.

The Dow Jones industrial average gained 92 points, or 0.5%, to an all-time closing high well above that landmark 20,000 level — and a little over halfway to the next 1,000-point rung, at 20,504.41.

Meanwhile the Standard & Poor’s 500 index rose 0.4% and the Nasdaq composite index gained 0.3%. Both indexes also set new all-time closing highs. All three indexes’ previous closing highs came in Monday’s session.

Bond yields rose after Federal Reserve Chair Janet Yellen said the central bank is still on track to raise interest rates gradually.

Yellen answered questions before a Senate committee, and she said that the strengthening job market and a modest move higher in inflation should warrant continued, gradual increases in interest rates.

Bond yields moved higher immediately following Yellen’s comments. The yield on the 10-year Treasury note rose to 2.47% from 2.43% late Monday.

Overnight US Market :Dow closed +143 points.S&P 500 up 12 points.

Stocks around the world continued to push higher Monday, and U.S. indexes again hit records. Bond yields climbed.

The Standard & Poor’s 500 index rose 12.15 points, or 0.5%, to close at a record 2,328.25 and topped $20 trillion in market value for the first time ever. The Dow Jones industrial average rose 142.79 points, or 0.7%, to an all-time closing high of 20,412.16. The Nasdaq composite gained 29.83 points, or 0.5%, to a record 5,763.96.

Treasury yields also rose as the yield on the 10-year Treasury note rose to 2.43% from 2.41% late Friday. Two-year and 30-year Treasury yields also notched higher.

Roughly five stocks rose for every three that fell on the New York Stock Exchange. Financial stocks helped lead the way, and those in the S&P 500 rose 1.3%. That’s the largest gain among the 11 sectors that make up the index. Raw-material producers and industrial companies were also strong.

Stocks resumed their upward climb last week after stalling for a couple weeks. Strong earnings reports have helped drive the gains. The majority of companies in the S&P 500 that have reported fourth-quarter earnings so far, 69%, have beaten Wall Street’s expectations, according to S&P Global Market Intelligence. It’s mostly come through companies keeping control of costs better than analysts were forecasting.

Overnight US Market :Dow Closed + 97 points

Stocks closed out the week in a strong fashion Friday as the Dow, S&P 500 and Nasdaq all jumped to new all-time highs in the market’s push further into record territory.

The Dow Jones industrial average rose 96.97, or 0.5%, to close at a record 20,269.37, according to preliminary calculations. The Standard & Poor’s 500 index gained 8.23 points, or 0.4%, to 2316.10 and the Nasdaq composite index added 18.95, or 0.3%, 5734.13.  Both the S&P and Nasdaq were up for a fourth straight day.

Miners and other raw materials companies led the market rally and rising crude oil prices also gave energy companies a big boost. Investors kept their focus on strong company earnings and corporate deal news.

Investors have focused on companies quarterly results lately as they size up corporate America’s growth prospects. Earnings are on track to mark the second-consecutive quarter of growth after a losing streak of five straight quarters. Beyond earnings, investors are also eying Washington D.C. for signs the Trump administration will deliver on the promised business-friendly policy proposals that helped drive a market rally last fall, including slashing government regulations and taxes.

Benchmark U.S. crude was up 91 cents, or 1.7%, at $53.91 a barrel in New York. The contract rose 66 cents on Thursday. Brent crude, the benchmark for international oil prices, was up $1.05, or 1.9%, at $56.68 a barrel in London.

 

Overnight US Market :Dow closed +118 points ,Dow, S&P 500, Nasdaq blow past old records

Stocks were in rally mode Thursday as all three of the major indexes jumped to new all-time closing highs.

The Dow Jones industrial average jumped 118 points, or 0.6%, to 20,172.40.

Up by the same percentage were the S&P 500 and the Nasdaq composite — to their new highs of 2307.87 and 5715.18, respectively.

Investors weighed earnings from a batch of companies, including Twitter, Kellogg and Viacom. Energy stocks led the gainers as the price of crude oil headed higher. Utilities were down the most.

Benchmark U.S. crude gained 66 cents, or 1.3%, to $53.00 a barrel in electronic trading on the New York Mercantile Exchange, while Brent crude, the benchmark for international oil prices, added 40 cents to $55.52 a barrel.

In earnings news:

Overnight US Market :Dow closed -36 points.Nasdaq hits another new high

Stocks ended mixed Wednesday as investors focused on the latest slate of company earnings news. Oil prices rebounded after an early slide.

Climbing were the Nasdaq, up 0.2% to a new closing high, and the the S&P 500, which gained 0.1%.

Its 8-point gain built on the Nasdaq composite’s record close of the previous session. The Nasdaq ended Wednesday’s trading at 5,682.45.

The Dow Jones industrial average finished down 36 points, or 0.2%, to 20,054.34.

Crude oil prices rebounded after an early slide. Benchmark U.S. crude rose 17 cents, or 0.3%, to close at $52.34 a barrel in New York. Brent crude, the benchmark for international oil prices, climbed 7 cents, or 0.1%, to close at $55.12 a barrel in London.

Bond prices rose. The 10-year Treasury yield fell to 2.35% from 2.40% late Tuesday

In Europe, Germany’s DAX fell 0.1%, while France’s CAC 40 rose 0.3%. The FTSE 100 index of leading British shares was flat. Major indexes in Asia were mixed. Tokyo’s Nikkei 225 rebounded from early losses to rise 0.5%, while Hong Kong’s Hang Seng added 0.7%. Sydney’s S&P ASX 200 gained 0.5%.

The price of gold added $3.40 to $1,239.50 an ounce. Silver fell 5 cents to $17.71 an ounce. Copper rose 3 cents to $2.67 a pound.