Sat, 25th February 2017

Anirudh Sethi Report


Archives of “US Market” Category

Overnight US Market :Dow closed +371 points.S&P 500 Zoomed up 46 points

On the eve of the U.S. presidential election, the Dow closed up 371 points Monday after FBI director James Comey said the agency is not recommending criminal charges against Democratic nominee Hillary Clinton over her emails.

The broad market broke a nine-day losing streak, Wall Street’s longest in 36 years, as investors again started to price in their base case of a Clinton win and split Congress.

In a letter to lawmakers Sunday, Comey said the FBI is standing by its original findings, made in July, that Clinton should not be prosecuted for her handling of classified information over email as secretary of State. Comey, of course, had roiled the financial markets back on Friday, Oct. 28, when he sent a letter to Congress saying he was reviewing more emails tied to Clinton found in an unrelated case.

The S&P 500 closed up 46.34 points, or 2.2%, to 2131.52, snapping a nine-session losing streak, its longest skid since December 1980. The losing streak was caused in part by a tightening in the polls, as Wall Street had been pricing in a Clinton win before Trump’s surge in the polls. The broad index has wiped out two-thirds of its losses it suffered in nine-session swoon.

The Dow Jones industrial average closed up 371.32 points, or 2.1%, to 18,259.60. The Nasdaq composite finished 119.80 points, or 2.4%, higher at 5166.17.

Overnight US Market :Dow closed -42 points. 9th Consecutive down close

The Standard & Poor’s 500  index closed lower Friday for a ninth straight day, marking its longest losing streak in 36 years, as uncertainty and angst related to Tuesday’s tough-to-call presidential election overshadowed a government report showing continued steady job growth.

At the close, the index was down 3.48 points, or 0.2%, to 2085.18. The last time it fell nine straight days was in December 1980, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, when Republican Ronald Reagan was celebrating his presidential election win over Democratic incumbent Jimmy Carter. The Dow Jones industrial average fell 42.39 points, or 0.2%, to 17,888.28. The Nasdaq composite declined 12.04 points, 0.2%, to 5046.37.

If stocks fall Monday, it would mark a 10th day of losses for the S&P 500, a streak last seen in the summer of 1975, according to Silverblatt. If election angst drags on beyond Election Day the S&P 500 will be in danger of eclipsing its longest losing streak of all time: a 12-day swoon back in April 1966 — or 50 years ago.

Stocks have been dragged down amid signs the presidential race between Hillary Clinton and Donald Trump is narrowing, which is creating major uncertainty and making investors jittery. Wall Street had been pricing in a Clinton win, but as polls have narrowed following Clinton’s lastest email scandal, investors have opted to hedge against the possibility of a Trump surprise win.

Still the market’s nine-day swoon has only added up to a loss of 3.07%, which is modest, notes Silverblatt, noting that the S&PP 500 has lost more than that amount on a single day 298 times.

Overnight US Market :DOW Closed -29 Points.S&P Closed -9 points.

Stocks shifted into malaise mode Thursday afternoon with the looming election, sending the S&P 500 down for an eighth straight day.

That’s the longest losing streak for the broad market index since 2008, CNBC reported.

All three major indexes fell for the day after holding onto gains for at least much of the morning. The S&P 500’s loss was 0.4%, while the Dow Jones industrial average and the Nasdaq composite fell 0.2% and 0.9%, respectively.

Investors remain nervous about the outcome of the presidential election between Hillary Clinton and Donald Trump next week as polls tighten.

As expected, the Federal Reserve left interest rate policy unchanged Wednesday but kept the door open for a rate hike at its December meeting.

U.S. benchmark oil futures slipped again, falling 1.5% to $44.65 a barrel in electronic trading on the New York Mercantile Exchange.

Overnight US Markets :Dow closed -77 points. 7th Consecutive down close for S&P 500

The S&P 500 notched a seventh consecutive day of losses Wednesday as worries over the presidential election and weaker oil prices shook investor confidence.

The Fed’s decision to keep rates steady, announced at 2 p.m. ET, did not lift stocks out of negative territory.

Of the three major indexes, the Nasdaq dropped the most, down 0.9% for the day. The S&P 500 and Dow Jones industrial average lost 0.7% and 0.4%, respectively. It was a 77-point loss for the Dow.

The Fed, in its statement, said that the “case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives” of stronger economic growth and inflation rising towards its 2% mandate.

Like most of the public, investors have their eyes glued to the presidential race, as polls between Hillary Clinton and Donald Trump have tightened. The narrowing in the race has brought more uncertainty. Gold and bond prices have risen. The VIX, a volatility measure dubbed the “fear gauge” for Wall Street, jumped 14% on Tuesday to its highest level since June. It was up another 1% early Wednesday.

The Mexican peso, which has become a de facto proxy for Trump’s chances to win the election, has fallen steadily against the U.S. dollar since Friday. Investors expect that Mexico’s economy would be negatively impacted by a Trump administration.

Overnight US Market :Dow closed -105 points.S&P 500 posts 6th straight loss

Stocks tumbled Tuesday, with the S&P 500 posting its sixth straight loss as nervous investors continued to monitor the run-up to the 2016 election and wait for news from the Federal Reserve, which concludes a two-day policy meeting on Wednesday.

The Dow Jones industrial average ended down 105 points, or 0.6%.  The Standard & Poor’s 500 index fell 0.7% and the Nasdaq composite dropped 0.7%.

Increasingly, investors’ focus has been the presidential election, as polls between Hillary Clinton and Donald Trump appear to have tightened following last week’s news that the FBI had opened a new investigation into Clinton’s private email server. The narrowing in the race has introduced a new element of uncertainty into the market, something that analysts say is likely to keep trading in check.

There were signs of nervousness in the market. Gold prices rose more 1% and the Mexican peso, which has become a proxy for Trump’s chances to win, has been falling steadily against the U.S. dollar since Friday. The peso is down 1.2% against the dollar, a significant move in currency trading.

Investors are also keeping an eye on the Federal Reserve as policymakers started its two-day meeting on Tuesday, where it is widely expected the nation’s central bank will keep interest rates stable.

U.S. manufacturing grew last month at the fastest pace since July, a sign that American factories are coping with economic weakness overseas and a strong dollar. The Institute for Supply Management says its manufacturing index came in at 51.9 up from 51.5 in August. Anything above 50 signals growth. Production and export orders grew faster in October.

Overnight US Market :Dow closed -19 points.

Stocks closed slightly lower on Monday as positive economic data and a series of big mergers were offset by uncertainty surrounding the election.

Investors continue to watch the day-to-day developments of the U.S. presidential election, which is slightly more than a week away. The news out late last week regarding newly found emails related to Hillary Clinton’s email practices has thrown the election’s results into more uncertainty. Over the weekend, FBI obtained a warrant to begin reviewing newly discovered emails that may be relevant to the Hillary Clinton email investigation, a law enforcement official told The Associated Press.

The Dow Jones industrial average fell 19 points, or 0.1%, to 18,142. The Standard & Poor’s 500 was basically flat, dropping 0.26 to 2126 and the Nasdaq composite dipped 0.97 to 5189. For the month, the Dow dropped 0.9% as the blue-chip index fell for a third straight month. The S&P 500 fell 1.9% and posted its worst monthly loss since January’s 5.1% drop. The Nasdaq tumbled 2.3% for the month.

Along with the election, investors have two heavyweight events on the economic front this week: a meeting of the Federal Reserve and the October jobs report.

Overnight :Dow closed -8 points ,S&P 500 -7 Points

Election angst is back on Wall Street.

Stocks, which had been up after the government said the economy grew last quarter at its fastest pace in two years, closed lower Friday after the FBI said it would review more emails in the case related to Hillary Clinton’s use of a private email server while Secretary of State, injecting fresh uncertainty into the presidential race.

The news unnerved investors. Wall Street had been pricing in a win for front-runner Clinton, but the latest broadside to the Democrat’s campaign could potentially boost Trump’s chances when voters go to the polls in 11 days.

The Dow Jones industrial average, which had been up almost 90 points, closed down 8.49, or 0.05%, to 18,161.19. The S&P 500 closed 0.3% lower at 2126.41. The Nasdaq gave up its early gains and fell 0.5% to 5190.10. In another sign of market jitters, a Wall Street “fear gauge,” dubbed the VIX, jumped as much as 13% on the FBI news.

The Dow finished the week with a small gain, and looking ahead to next week Wall Street will be watching politics, the Federal Reserve’s decision on interest rates, a slew of corporate earnings and the release of the October jobs report.

Overnight US Market :Dow closed -54 points

U.S. stocks fell Tuesday as investors digest an avalanche of corporate earnings that were mixed, with blue chip consumer-products maker Procter & Gamble faring well but others like heavy equipment maker Caterpillar disappointing Wall Street.

The Dow Jones industrial average fell 54 points, or 0.3%, to close at 18,169. The Standard & Poor’s 500 stock index fell 0.4% to 2143 and the Nasdaq composite was 0.5% lower to 5283.

Wall Street got a large slate of earnings reports from Dow components, including well-received reports from P&G (PG), which reported organic growth of 3%, as well as United Technologies (UTX), and drug maker Merck (MRK), which topped forecast with the help of strong sales of its cancer drug Keytruda.

But the good news was offset by weaker-than-expected results from companies like 3M (MMM) and Caterpillar (CAT), which cut its earnings view for the remainder of 2016, citing sluggish sales of its heavy equipment.

Overnight US Market -DOW Closed + 77 points ,S&P 500+ 10 Points

Stocks rose  Monday as investors seemed heartened by a flurry of activity in the mergers and acquisitions space.

The Dow Jones industrial average gained 77 points, or 0.4%, to close at 18,223. The Standard & Poor’s 500 index increased 0.5% to 2151 and the Nasdaq composite index jumped 1% to 5310.

The gains came despite a slightly negative investor reaction to AT&T’s $85.4 billion deal for Time Warner, which was officially announced Saturday.

But traders were pleased at the sight of Rockwell Collins’ $6.4 billion acquisition of B/E Aerospace. Shares of B/E Aeropsace (BEAV) shot up more than 15% as Rockwell (COL) fell 6%

Other deals included TD Ameritrade’s $4 billion acquisition of rival Scottrade.

Meanwhile, cell phone services provider T-Mobile (TMUS) raised its profit outlook after adding 2 million net new customers in the third quarter. The company beat S&P Global Market Intelligence expectations on earnings per share.

Overnight US Market :Dow closed -17 points

U.S. stocks closed flat Friday, but the broad market still finished the week higher, snapping its weekly losing streak at two, with the market swinging up and down as good earnings reports from some companies were offset by others that fell short of Wall Street forecasts.

On Friday, the broad Standard & Poor’s 500 stock index fell less than 1 point, or virtually unchanged to 2141.16, but still finished the week up 0.4%. The Nasdaq composite also posted gains this week, rising 0.8% after a nearly 16-point gain to 5257.40. The Dow Jones industrial average also finished the week fractionally higher despite tumbling 16.64 points Friday to 18,145.71.

The past week on Wall Street was dominated by the first big onslaught of third-quarter profit reports, with Wall Street cheering better-than-expected reports from well-known blue chip companies like Microsoft and McDonalds, a trio of beats from financial giants American Express (AXP), Morgan Stanley (MS) and Goldman Sachs (GS), and video streaming service Netflix (NFLX).

Those earnigns “beats,” however, were dimmed by less-robust results from Verizon (VZ), which reported disappointing wireless subscription gains, chip maker Intel (INTC), which lowered its full-year profit outlook, and a “miss” from conglomerateGeneral Electric (GE).