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Sat, 25th March 2017

Anirudh Sethi Report

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Archives of “US Market” Category

Overnight US Market : Dow 11th straight record.

The Dow Jones industrial average capped off another profitable week by stretching its string of all-time closing highs to 11 sessions, its longest record-setting run since 1987.

A late-day rally propelled the Dow to its eleventh up day in a row and third straight week of gains, keeping alive the bullish vibe that has been in place since Feb. 9. Investors will quickly shift their focus to next week’s main event: President Trump’s key address to Congress Tuesday, a speech that Wall Street hopes will be laser-focused on his administration’s economic agenda.

The blue chip stock gauge, which has not finished down since Feb 8, has rallied nearly 770 points, or about 4%, in its hot streak. On Friday, after trading in negative territory for most of the day, it eked out a gain of 11.44 points to close at a record 20,821.76. The Dow’s 11-session winning streak matches a comparable run that ended back on Jan. 3, 1992, or 25 years ago.

More important, however, the Dow is chasing a string of 13 consecutive “record” closes dating back to Jan. 20, 1987

Wall Street is hoping that Trump will lay out in more detail his agenda of tax cuts for businesses and the middle class, as well as spending plans to upgrade the nation’s infrastructure. There is increasing concern among investors that Trump’s growth-friendly policies might not materialize fast enough to merit the sharp rise in stock prices.

Overnight : Dow up for 10th straight day, 21K in reach

The streaky Dow on Thursday did what it hasn’t done in nearly four years: Finish higher for 10 consecutive trading days.

The Dow Jones industrial average hasn’t finished in the red since Feb. 8 — the day before President Trump promised a tax cut plan would be announced in a few weeks.

On Thursday, the Dow finished in the black for the 10th day in a row. That hasn’t happened since March 2013.

The blue chips climbed 0.2%, up 35 points to yet another all-time closing high of 20,810.32. Other major indexes:

► S&P 500, up less than 0.1% to 2363.81.
► Nasdaq composite, down 0.4% to 5835.51. It snapped a 15-day winning streak.

Blue chip stocks have been getting a lift from a number of tailwinds, ranging from optimism surrounding Trump’s economic plans and a realization that the economy, job market and corporate profits have been moving higher for months now.

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.