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Sun, 22nd January 2017

Anirudh Sethi Report

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Archives of “Edward Jones” Tag

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 -72 points

The Dow Jones industrial average erased its gain for the year on Thursday, part of a pullback for stock indexes as Treasury yields continued their upward march.

The Dow Jones industrial average fell 72 points, or 0.4%, to 19,732.40. That puts the Dow down about 32 points for the year and will makes this the fifth straight day of losses. The Standard & Poor’s 500 index fell 0.4% to 2,263.69. The Nasdaq composite fell 0.3% to 5,540.08.

Four stocks fell for every one that rose on the New York Stock Exchange.

Stocks have slowed in 2017 following an electrifying jump higher since Election Day. Investors are waiting to see what a Donald Trump presidency will really mean for stocks. They’ve already seen the optimistic case, as shown in the nearly 6% jump for the S&P 500 since Donald Trump’s surprise victory of the White House, propelled by expectations for lower taxes and less regulation on businesses.

But on the possible downside, increased tariffs or trade restrictions could mean drops in profits for big U.S. companies.

Bond yields continued their march higher, and the 10-year Treasury yield rose to 2.47% from 2.43% late Wednesday. Yields have generally been climbing since Election Day on expectations that President-elect Donald Trump’s policies will spur more inflation and economic growth. The 10-year yield is still below its perch above 2.60% that it reached in mid-December, but it’s well above the 2.09% yield it was at a year ago.

Reports have shown that the U.S. economy has been improving recently, and the latest on Thursday showed encouraging signs for the housing and labor markets. The fewest number of workers sought unemployment claims last week in 43 years, a sign that corporate layoffs are subsiding.

Overnight US MARKET :Dow closed -59 points.

Investor skittishness over coming policies under soon-to-be-president Donald Trump just days before his inauguration put stocks in the red Tuesday and pushed the Dow down for a third straight session.

Also haunting the market was another weak day for bank stocks, a sector that had performed strong at the start of the so-called “Trump rally” after Election Day but is running into profit taking. Shares of Morgan Stanley (MS) were down nearly 4% despite posting its best fourth-quarter since the financial crisis, while Goldman Sachs (GS) fell 3.3% and Citigroup (C) tumbled 2.1%.

The Dow Jones industrial average closed down 59 points, or 0.3%, to 19,827, or roughly 175 points shy of 20,000. At its low point, the Dow was down more than 110 points.

Markets were reacting to Trump comments in the Wall Street Journal suggesting that the U.S. dollar is “too strong” and could hurt U.S. multinationals. The president-elect also questioned an alternative tax reform plan being discussed by Republicans in the House of Representatives. A strong dollar hurts sales and earnings of U.S. companies that do a lot of business abroad.

Trump’s comments, not unlike some of his tweets that have caught investors by surprise on individual companies, created fresh uncertainty about what policies will actually be enacted once Trump takes office after Friday’s inauguration. Trump’s latest comments were viewed as new information by Wall Street.

The Standard & Poor’s 500 index closed down almost 7 points, or 0.3%, to 2267.89, while the Nasdaq composite fell 0.6% to 5538.73.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.329%.

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 +119 points

What a difference a year makes. The U.S. stock market kicked off the first day of trading of 2017 with solid gains, a year after plunging in the opening session of 2016 on its way to its worst week to start a year ever.

The benchmark Standard & Poor’s 500 stock index — which closed up 0.9% to 2258 — posted a gain on the first trading day of a new year for the first time since 2013. Last year, the large-company stock index cratered 1.53% on January’s first trading session — its sixth-worst Day 1 percentage loss and worst annual kickoff since 2001 —   on its way to a worst-ever first week of the year decline of 5.96%, according to S&P Dow Jones Indices. The S&P 500, however, rebounded and finished 2016 up 9.5%.

The Dow Jones industrial average rose as much 176 points before pulling back and finishing up 119 points, or 0.6%, to 19,882. The blue-chip index came within 105 points of 20,000 after a late-year flirtation with the milestone fell short. The technology-packed Nasdaq rose 0.9% and the small-company Russell 2000 stock index, which gained 19.5% in 2016, finished up 0.5%.

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%.

44 Years Ago, The Dow Crossed 1,000 For The First Time – Here’s What Happened Next

With all eyes desperately urging The Dow to cross 20,000 and prove that everything in the world of Trumplandia is awesome, we thought some reflection on another major milestone in the omnipresent Stock Index would be worthwhile…

As The New York Times reported 44 years ago… The Dow Jones industrial average closed above the 1,000 mark yesterday for the first time in history.

 It finished at 1,003.16 for a gain of 6.09 points in what many Wall Streeters consider the equivalent of the initial breaking of the four-minute mile.

“This thing has an obvious psychological effect,” declared one brokerage-house partner. “It’s a hell of a news item. As for the perminence of it — well, I just don’t know.”

The Dow finally put it all together, the peace rally, the re-election of President Nixon, the surging economy, booming corporate profits and lessening fears about inflation and taxes and controls and other uncertainties of 1973.

With such kingpin issues leading the forward surge, the market fed on its own momentum. The Dow forged past 1,000 at 1:30 P.M. and it kept gaining almost consistently until the final bell.

At 3:29 P.M., red light bars flashed on above and below each of the time clocks surrounding the trading floor of the New York Stock Exchange. This was the traditional visual signal to show that one minute of training time remained. At the same moment, a bell began clanging on the speaker’s rostrum – the auditory warning.

Traders, brokers and clerks on the floor – aware that history was in the making – broke into cheers that lasted about 20 seconds. Some paper was tossed in the air and drifted down like confetti.

Several hundred persons on the floor then turned to face newsreel cameras grinding away on the member’s gallery, some brokers waving like fans at a football game.

An office broker, watching the stock tape from his desk downtown, murmured in wonderment: “There’s a sort of renewed confidence in the whole economic outlook.”

Overnight US Market :Dow closed +92 points.Every Day New High !!

After coming within 13 points of 20,000, the Dow Jones industrial average fell shy of the milestone but still notched a fresh all-time high.

The Dow closed up 91.56 points, or 0.5%, and closed at its 17th record closing high since Election Day at 19,974.62, or less than 25 points shy of 20,000. During the session it notched an intraday record high of 19,987.63 in morning trading. The Standard & Poor’s 500 index gained 0.4% and closed at 2270.76, just shy of its record closing high. The Nasdaq composite index hit a record close of 5483.94, after rising 26.50 points, or 0.5%, to 5483.94.

The blue-chip index has made several attempts to break through the 20,000 mark but each time it’s fallen just short. The index has rallied strongly since the election of Donald Trump as the next U.S. president amid hopes that the incoming administration will be kind to business and back more spending on such things as infrastructure.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.57% from 2.54%. Bond yields have jumped to longtime highs over the last few months but they fell sharply yesterday. Higher yields allow banks to charge more money for loans, so financial firms traded higher. Goldman Sachs (GS) added 1.7% and Bank of America (BAC) gained 1%.

Benchmark U.S. crude gained 11 cents to $52.23 per barrel in New York.

Overnight Dow Jones closed up 65 points.New High Continues….

Stocks gained Thursday, the Nasdaq joining the Dow, S&P 500 and Russell 2000 in record territory as all four indexes hit new all-time closing highs.

After a quiet start, major U.S. stock indexes jumped in afternoon trading as the market built on a surge the previous day. Banks and basic materials companies made the biggest gains, and technology companies also climbed. Defense contractors and other industrial companies took losses.

The small-stock Russell 2000 surged 1.5%.

Meanwhile the Dow Jones industrial average ended up about 65 points, or 0.3%. The Standard & Poor’s 500 index rose 0.2%. The Nasdaq composite jumped 0.4%.

These are the new closing highs for the four indexes:

► Dow: 19,614.81
► S&P 500: 2246.19
► Nasdaq: 5417.36
► Russell 2000: 1386.37

U.S. government bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 2.40% from 2.34%. That drove banks stocks up since higher interest rates will allow banks to charge more for lending money. Goldman Sachs (GS), which has surged 32% since the presidential election and is trading at a nine-year high, was up 2.5%, and Bank of America (BAC) picked up 1.7%.

European stocks climbed for the second day in a row. Germany’s DAX index was up 1.8% and France’s CA 40 index gained 0.9%. London’s FTSE 100 rose 0.4%.

Overnight US Market :Dow closed up 298 points.

Stocks rallied Wednesday and continued their record-setting run as the Dow soared almost 300 points and leaped to another new record closing high. The rally was broad-based as the S&P 500, Dow transports and Russell 2000 also set new record closes.

The Dow Jones industrial average jumped 297.84 points, or 1.6%, to an all-time closing high of 19,549.62. The Standard & Poor’s 500 index jumped 1.3% to a record close of 2241.35. The small-stock Russell 2000 index gained 0.9% to an all-time high of 1364.51.

The tech-heavy Nasdaq composite index rose 1.1% to 5393.76, about 5 points shy of its record close.

Stocks moved steadily higher throughout the day after a mixed open. Phone and real estate companies made the largest gains, but the rally moved into high gear in the afternoon, as airlines, railroads and trucking companies soared.

Investors took the rally in transportation stocks as a sign of optimism about economic growth. Technology and consumer-focused companies also jumped. Biotech drug companies took steep losses after President-elect Donald Trump said he wants to reduce drug prices.

U.S. government bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 2.34% from 2.39%. Bond yields have risen sharply since the summer but have slipped in the last few days.

Oil prices fell back below $50 a barrel as benchmark U.S. crude dropped 2.3% to $49.77 a barrel in New York.