Mon, 26th June 2017

Anirudh Sethi Report


Archives of “US Market” Category

Overnight US Market :Dow closed 51 point down ,S&P down -0.33%, Nasdaq down -0.37%

S&P down -0.33%, Nasdaq down -0.37%

The US major stock indices are ending the day in the red but off low levels
  • S&P was down -7.81 points or -0.33%. The low reached about -16 points
  • Nasdaq was down -21.577 points or -0.37%. The low for it extended to around -43 points
  • The Dow ended down -51.37 points or -0.24%. The low water mark was down about -93 points.
In the US debt market today, yield were up with the longer end rising the most.
  • 2 year 1.301%, unchanged for the day
  • 5 year 2.017%, up about 1 bp
  • 10 year 2.4925%, up 1.4 bp
  • 30 year 3.098%, up 2.6 bp
Spot gold was down -$8.60 or down -0.71%
Spot silver is down -$0.20 or -1.14%

Overnight :US Market end the session with small gains

Stocks inched upward Friday after remarks by Federal Reserve Chair Janet Yellen pointed to a rate hike later this month.

The Dow and S&P 500 posted fractional gains. The blue chips barely finished higher on the day, up 3 points and staying above 21,000, ending at 21,005.71.

Climbing 0.2% was the Nasdaq composite, to 5870.75.

“At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate,” Yellen said in a 1 p.m. ET speech at the Executives’ Club of Chicago.

While Yellen couched her remark in conditional terms that depend on economic data, she preceded it by citing a job market that has been “strengthening” and inflation that has been “rising toward our target” of 2% annually.

Several other Fed officials in recent days have indicated the Fed’s policymaking committee is likely to raise its benchmark short-term rate at a March 14-15 meeting.

Overnight :US Markets closed at sessions low.Dow closed -112 points

S&P down -0.59%

The US major stock indices are going out near lows levels
  • S&P index is closing at 2382, –14.15 points or -0.59%
  • NASDAQ composite index  closing at 5861.22, down -42.8 points or -0.73%
  • Dow is down -112.58 points to 21002.  That is down -0.53%
Caterpillar was a big drag on the Dow today as federal investigators raided corporate head quarters for tax documents.
Snap came to the market. The IPO was priced at $17 per share, and opened at $24.  It is closing at $24.48.
In the US debt market:
  • The 2 year not is trading at 1.312% up 2.8 bp. The yield is the highest in 7 years
  • 10 year yield is at 2.483% up 3 b

Overnight US Market :Dow Closed +303 points.S&P 500 Up 32 points

The Trump Rally is back on again.

Wall Street didn’t get the nitty gritty details it wanted on policies such as tax reform and trade from President Trump Tuesday night in his speech to Congress, but the commander-in-chief’s “presidential” tone set investors at ease and they pushed the Dow up more than 300 points to a record-setting close above 21,000.

Investors are taking Trump’s measured and positive demeanor as a sign that he will have a better chance of getting his economic agenda through Congress.

In his address to a joint session of lawmakers, Trump reiterated his push for “historic tax reform” that will put American businesses on a level playing field with foreign competitors, repeated his calls for a $1 trillion infrastructure spending plan and noted that his administration has “undertaken a historic effort to massively reduce job‑crushing regulations.” The president also repeated his promise to repeal and replace Obamacare.

Wall Street was also listening for the things Trump didn’t say. He didn’t echo recent attacks on the media, complain about fake news or mention spats with celebrities and other topics considered “off message.”

Overnight US MARKET :Dow closed -25 points.S&P 500 -6 Points

On Day 13 the Dow rested.

The Dow Jones industrial average’s streak of record high closes was snapped at 12 on Tuesday, ending its best run of fresh peaks in 30 years.

The Dow fell 25.20 points, or 0.12%, to close at 20,812.24. Still, the blue chip stock gauge rose nearly 950 points, or 4.8%, in February.

The streak had garnered a lot of attention and publicity on Wall Street, where investors have been pushing both stock prices and valuations up on the strength of a solid U.S. economy and optimism that President Donald Trump would be able to bolster growth even more by getting some planks of his pro-business agenda, such as a big tax cut for corporations and massive spending on infrastructure, passed into law. The Dow rose 13 straight days to start the year back in 1987.

Still, despite the strong reading on U.S. consumer confidence in February — the best since summer 2001 — investors were unwilling to make ever bigger bets on the Dow ahead of Trump’s highly publicized speech to Congress late Tuesday.

Overnight US Market :Dow closed up 15.68 points. Closes at a record for 12th straight day, longest streak since 1987

Stocks rose Monday as the Dow closed at a record high for a twelfth straight day, something it hasn’t done since Jan. 1987 when it ran off 13 straight record closes to start the year, according to Bespoke Investment Group.

The Dow Jones industrial average rose 15.68 points, or 0.1%, to 20,837.44. The Standard & Poor’s 500 index added 2.39, or  0.1%, to 2369.73 and the Nasdaq composite index gained 16.59, or 0.3%, to 5861.90.

Energy stocks led the gainers as the price of crude rose.  Benchmark U.S. crude was up 20 cents, or 0.4%, at $54.15 a barrel in New York. The contract fell 46 cents on Friday.

Investors were looking ahead to President Donald Trump’s speech to Congress on Tuesday for details of promised tax cuts and infrastructure spending. U.S. stocks have benefited from Trump’s promise of pro-business changes, but investors are waiting to see  how large and rapid those changes will be.

During a meeting with governors Monday, Trump noted that his upcoming budget would include a big boost to defense spending. The White House separately said that the budget would include a $54 billion increase in defense spending while imposing corresponding cuts to domestic programs and foreign aid.

Investors were also looking ahead to Trump’s speech Tuesday to a joint session of Congress for details of how he plans to carry out promises to cut taxes and step up infrastructure spending.

n Europe, Germany’s DAX rose 0.2%, while France’s CAC-40 was flat. London’s FTSE-100 added 0.1% Major indexes in Asia posted losses. Tokyo’s Nikkei 225 index fell 0.9%. Hong Kong’s Hang Seng slid 0.2%. Seoul’s Kospi shed 0.4%.

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.