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Wed, 22nd February 2017

Anirudh Sethi Report

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Archives of “Dow Jones & Company” Tag

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 closes back above 20,000, Nasdaq hits record

Banks and other financial companies led stocks higher on Wall Street Friday as President Trump prepares to scale back financial industry regulations. Buyers were also encouraged by a pickup in hiring in January. Small-company stocks, which stand to benefit more than others from stronger economic growth, make sharp gains.

The Dow Jones industrial average jumped back above the 20,000 level as the blue-chip index rose 186.55 points, or 0.9%, to close at 20,071.46. The Standard & Poor’s 500 index gained 16.57, or 0.7%, to 2297.43, moving within one point of its record closing high of 2298.37. The Nasdaq composite index added 30.57, or 0.5%, to set a new record closing high of 5666.77.

The Russell 2000 index of smaller-company stocks climbed 1.5% to 1,377.84. Smaller, domestically-focused companies may have more to gain than their larger peers from faster growth in the U.S. The Russell made large gains at the end of 2016 based on those hopes.

The stock market rally kicked off early after the government reported that U.S. employers added 227,000 jobs in January, higher than last year’s average monthly gain of 187,000 and a sign that President Donald Trump has inherited a robust job market. The unemployment rate ticked up to a low 4.8% from 4.7% in December, but for a good reason: More people started looking for work. The percentage of adults working or looking for jobs increased to its highest level since September.

Financial firms rose after President Donald Trump took his first steps aimed at scaling back regulations on the industry. He signed an order that directs the Treasury Secretary to look for potential changes to the Dodd-Frank law, which reshaped financial regulations after the 2008-09 financial crisis and created the Consumer Financial Protection Bureau.

The order doesn’t have any immediate impact, but suggests Trump is intent on reducing regulations, which could boost profits for financial companies and banks.

Dow components Visa (V) and Goldman Sachs (GS) jumped 4.6%, JPMorgan Chase (JPM) added 3.1% and American Express (AXP) gained 2%. Smaller banks, which could find it easier to lend money if regulations are cut, also traded higher.

Overnight US Market :Dow closed -107 points.

U.S. stocks fell Tuesday as the market fallout of Trump’s travel ban on seven Muslim-majority countries continues to take a toll and investors digest weak fourth-quarter results from companies including UPS and Under Armour.

Industrial companies are down the most, but health care companies offset some of the losses. As they look for less risky investments, buyers are moving money into bonds and stocks that pay large dividends, like utilities.

The Standard & Poor’s 500 index  fell for a fourth straight day, its longest losing streak since before the presidential election in November. But the losses have been fairly small, and for the second day in a row, stocks recovered some of their losses late in the day.

The Standard & Poor’s 500 index fell 2.03 points, or 0.1%, to 2278.87. The Dow Jones industrial average dropped 107.04 points, or 0.5%, to 19,864.09.  The Nasdaq composite index was able to cut its losses and closed up 1.07 to 5614.79.

Bond prices rose as investors snapped up bonds. The yield on the 10-year Treasury note fell to 2.45% from 2.49%. That hurt financial stocks, as lower bond yields reduce interest rates and the profits those companies make from lending.

Investors who want income also bought stocks that pay outsize dividends, including real estate investment trusts and utility companies. Gains for those stocks limited the market’s losses overall.

In earnings news:

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 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 -43 points.

Stocks ended mixed Thursday as retailers dominated the news with Macy’s and Kohl’s both plunging following weak holiday-season reports that led the chains to cut their profit forecasts.

Still, the Nasdaq composite’s modest gain of 11 points, or 0.2%, was enough to notch a new all-time high. Settling at at 5487.94, it topped the old record by half a point.

The Dow Jones industrial average finished down 43 points, a 0.2% decline to 19,899.29. Losing 0.1% was the S&P 500, which settled at 2269 even.

nvestors were also focusing on upcoming U.S. jobs data following the publication of the minutes to the Federal Reserve’s last board meeting.

Private U.S. companies added 153,000 jobs in December, according to payroll processor ADP. That total was a bit lower than analysts expected and slightly slower than the pace of hiring for the rest of 2016. The government will issue its own hiring report on Friday.

Overnight US Market :Dow closed + 60 points.Now 58 points away to kiss 20k

Stocks climbed Wednesday as Wall Street posted a second straight day of gains in the new year and the Dow once again approached the 20,000 milestone.

The Dow Jones industrial average ended up 60 points, or 0.3%, to 19,942.16. The blue-chip index rose has come close to topping 20,000 several times in recent weeks but each time it gets near has pulled back. The Standard & Poor’s 500 index rose 0.6% and the Nasdaq composite index gained 0.9%. Both the S&P 500 and Nasdaq are near their record closing highs.

Stocks maintained their gains following the release of the minutes from the latest Federal Reserve meeting that provided clues to why policymakers raised interest rates in December for only the second time since 2006 and forecast three rate hikes in 2017 instead of the two moves previously anticipated.

Fed officials said they might have to raise interest rates faster than anticipated to prevent rapidly falling unemployment and President-elect Donald Trump’s proposed fiscal stimulus from fueling excessive inflation, according to minutes of the Fed’s December 13-14 meeting.

Benchmark U.S. crude was up 1.8% to $53.24 a barrel in New York. It lost $1.39 on Tuesday.

Overnight US Market :Dow closed -57 points.Now 237 points short of 20k

Stocks sank on the last trading day of 2016, with the Dow now 237 points short of the 20,000 milestone that it came closest to hitting on Dec. 20.

It was merely a weak end to a very strong year, however, with the S&P 500 gaining 9.5% and the small-company Russell 2000 jumping 19.5% for 2016.

For the day, the Dow Jones industrial average lost 0.3%, off 57 points to 19,762.60. But for 2016, the blue chips gained 13.4%.

The S&P 500 ended 0.5% lower for the day, while the Nasdaq composite fell 0.9%

Global stocks mostly rose on the year’s last day of trading, with Britain’s index rallying to hit another all-time high. The FTSE 100, which was trading for only a half day, rose 0.3%. That leaves the index 14.4% higher over 2016. Elsewhere in Europe, Germany’s DAX rose 0.3%, while France’s CAC 40 gained 0.5%.