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Sat, 27th May 2017

Anirudh Sethi Report

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Archives of “US Market” Category

Overnight US Market :Dow closed -7 points.

Nasdaq leads the charge today/this week

The US major stock indices are ended the day mixed.
  • S&P is down -1.99, points
  • Nasdaq is up 5.61 points
  • Dow is -7.3 points
For the week, the major indices all closed with gains:
  • S&P index is up 1.02%
  • Nasdaq was the biggest gainer, rising by1.90%, and the
  • Dow is ending the week with a solid gain of 1.34%
The Dow moved and closed above the 20,000 level for the first time ever on Wednesday, and traded as high as 20125.58 on Thursday. Today was spend mostly down but with small losses. The index is closing at 20093.51. The Nasdaq and S&P also closed at record highs in trading this week.

Dow 20,000? It’s 30,000, Actually!

Start with the last point. Correct for mistakes dating from the days of paper and slide rule, and the Dow in fact passed 30000 for the first time last month, according to Birinyi Associates calculations.

The biggest mistake came from the simplistic recalculation of the average when it was expanded from 12 to 20 stocks. The official Dow record shows a drop of 24%—its worst-ever day—when the market reopened in 1914 after a four-month break because of the start of World War I. In fact, the market and the Dow rose that day, but the record was recalculated without any adjustment when the measure expanded from 12 to 20 stocks two years later. Because some of the new stocks added had lower prices, the new version of the average was pulled down. So, no, there really isn’t any reason to get worked up about the average passing 20000.

Its amusing silliness!

click for ginormous graphic

Source:
We’re Already at Dow 30000, You Just Don’t Know It
The blue-chip index is a poor measure of what investors are doing
James Mackintosh
Wall Street Journal, Jan. 25, 2017
www.wsj.com/articles/were-already-at-dow-30000-you-just-dont-know-it-1485362316

Overnight US Market :Dow closed +32 points

Stock indexes wavered between small gains and losses before ending mixed Thursday as investors sized up the latest company earnings news. Consumer goods and industrial stocks climbed the most, while health care and utilities were among the biggest laggards.

The Dow Jones industrial average climbed further above the 20,000 level it passed Wednesday. gaining 32 points, or 0.2% to 20,100.91.

Wall Street came off solid gains from the day before. The Dow Jones industrial average, after topping the magic 20K milestone and staying there, hit a record closing high along with the Nasdaq composite and the S&P 500.

On Thursday the Nasdaq slipped fractionally, losing just 0.02% to 5655.18. Off a little less than 0.1% was the S&P 500, now at 2296.68.

It’s been a record-making week on Wall Street. The S&P 500 index and Nasdaq composite closed at all-time highs on Tuesday and Wednesday. The Dow, which tracks 30 major industrial companies, added its own milestone Wednesday after it breached the 20,000 mark for the first time.

The market is getting a general boost from strong company earnings and investor optimism that the Trump administration’s policies on taxes, regulation and trade will be good for business.

Oil  prices jumped as benchmark U.S. crude oil was up $1.07, or 2%, at $53.82 per barrel in New York. Brent crude, used to price international oils, was up $1.08, or 1.9%, at $56.50 a barrel in London.

Overnight US Market :Dow closes above 20,000 for first time

The Dow finally broke through and closed above the elusive 20,000 mark for the first time ever in a historic day of trading Wednesday..

Heading into today’s trading action, the Dow Jones industrial average was just 87.29 points shy of the biggest milestone it has ever taken aim at — and by day’s end the Dow had rewritten the record books with its first close above the milestone it has been flirting with for nearly seven weeks. The Dow jumped 155.80 points, or 0.8%, and closed at a record high of 20,068.51. It also registered an intraday record of 20,082.

Cheers went up on the floor of the New York Stock Exchange and Dow 20,000 hats were in abundance when the Dow made history.

The Standard & Poors, which closed up 0.8% to 2298.37, and the Nasdaq composite, which rallied % to 5656.34, all closed at all-time highs.

The Dow’s successful attempt to break the 20,000 barrier comes on the fourth full day of trading under new president Donald Trump. Investors are bullish on stocks at the moment as they believe Trump’s proposed economic policies, will jumpstart economic growth and boost corporate profitability, two big drivers of stock prices.

The Dow’s run to 20,000 could mark a new leg up in the bull market, which turns eight in March, or give investors who think stocks are pricey some pause.

U.S. stocks continue to be the main driver across the world. They have enjoyed a strong rally recently amid hopes that the Trump administration will cut taxes, stimulate the economy and reduce red tape. However, up until Wednesday, the Dow had found resistance as it tried to break through the 20,000 mark for the first time ever.

In Europe Wednesday, Germany’s DAX closed up 1.8% while the CAC-40 in France rose 1%. The FTSE 100 index of leading British shares finished 0.2% higher

Trump “Hope” Gap Nears 400 S&P Points

The trend in ‘actual’ earnings has been dismal.. but the trend in ‘hope’ has been exceptional. Will hope prove right?

 

The gap between ‘history’ and ‘hope’ is now almost 400 S&P points (and almost 5,000 Dow points) – With VIX heading towards single-digits, the market seems very sure that earnings will realize the ‘hope’ in a straight line.

Overnight US Markets :Dow closed + 113 points.Nasdaq Hits New High

Stocks jumped Tuesday as the S&P 500 and Nasdaq hit new all-time highs and the Dow moved back up toward the 20,000 level.

The Dow Jones industrial averagegained 113 points, or 0.6%, to 19,912.71. The Standard & Poor’s 500 index climbed 0.7% to an all-time closing high of 2280.07. The tech-heavy Nasdaq composite index rose 0.9% to set a new closing record of 5600.96.

Materials and financial companies led the stock indexes higher in afternoon trading as investors sized up the latest round of company earnings news. Energy stocks also rose as crude oil prices headed higher. Health care, phone companies and other high-dividend stocks were among the biggest laggards as bond yields rose.

The heads of General Motors, Ford Motor and Fiat Chrysler Automobiles met with President Donald Trump early Tuesday. Trump wants the automakers to build new factories in the U.S. He’s warned of a “substantial border tax” on companies that move manufacturing out of the country and promised tax advantages to those that produce domestically. GM (GM) shares gained 1%, Ford (F) added 2.4% and  Fiat Chrysler (FCAU) jumped 5.9%.

Trump’s latest moves on trade and regulations have raised concerns over future access to the U.S. market, particularly among Asian countries. Trump signed a memorandum saying the U.S. will withdraw from the trade pact known as the Trans-Pacific Partnership. He also said he would renegotiate the North American Free Trade Agreement.

“The lack of any key U.S. economic data overnight had dealers focused exclusively on the Trump administration’s trade policy and the signing of the executive order to pull out of the TPP,” said Stephen Innes, senior trader at Oanda, of the Trans-Pacific Partnership.

Benchmark U.S. crude  rose 43 cents, or 0.8%, to $53.18 a barrel in New York. Brent crude, used to price international oils, gained 21 cents, or 0.4 %, at $55.44 a barrel in London.

The 10-year Treasury yield jumped to 2.47% from 2.40% late Monday.

Overnight US Market :Dow closed -27 points

U.S. stocks fell Monday as investors pored over the latest crop of company earnings and deal news. Energy companies were down the most as crude oil prices headed lower. Real estate stocks led the gainers. Traders also had their eye on the White House as President Donald Trump reaffirmed plans to slash regulations on businesses and tax foreign goods entering the country.

The Dow Jones industrial average dropped 27.40 points, or 0.1%, to close at 19,799.85. The Standard & Poor’s 500 index slid 6.11, or 0.3%, to 2265.20 and the Nasdaq composite index dipped 2.39, or less than 0.1%, to 5552.94.

At a White House meeting early Monday with business leaders, Trump repeated a campaign promise to cut regulations by at least 75%. He also said there would be advantages to companies that make their products in the U.S., suggesting he will impose a “substantial border tax” on foreign goods entering the country.

Energy stocks took a hit as oil prices fell. Benchmark U.S. crude was down 0.9% to $52.75 a  barrel in New York. Brent crude, used to price international oils, was down 0.4% at $55.28 per barrel in London.

The 10-year Treasury yield dropped to 2.40% from 2.47% late Friday.

In company news:

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.