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Sat, 25th February 2017

Anirudh Sethi Report

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Archives of “exchange traded fund” Tag

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.

Global stock barometer a whisker away from record peak

Global large-and-mid capitalisation stocks have climbed to within easy striking distance of setting a new all-time high for the first time in almost two years, led by a strong performance by US equities.

The MSCI all-world index, which tracks companies in 46 countries that account for 85 per cent of the investable equities market, closed on Monday at 441.14, just 0.35 per cent away from the all-time high it struck in May 2015.

The gauge has climbed by 23.5 per cent over the past 12 months, partly reflecting a sharp rebound from a fall at the start of last year.

Equity bourses around the world have been lifted by a brightening outlook for the world economy, along with a recovery in the price of oil.

World Bank economists reckon global growth will accelerate from 2.3 per cent in 2016, to 2.7 per cent this year, and 2.9 per cent the next year. The optimism has come as central banks in Europe and Asia have loosened monetary policy in a bid to spur faster growth.

In the US, the Federal Reserve has pledged to only “gradually” tighten policy. Some economists have also marked-up their estimates for the rate of expansion for the world’s biggest developed economy on expectations that Donald Trump and a Republican Congress will roll-out business-friendly policies.

Overnight US Market :Dow Closed + 97 points

Stocks closed out the week in a strong fashion Friday as the Dow, S&P 500 and Nasdaq all jumped to new all-time highs in the market’s push further into record territory.

The Dow Jones industrial average rose 96.97, or 0.5%, to close at a record 20,269.37, according to preliminary calculations. The Standard & Poor’s 500 index gained 8.23 points, or 0.4%, to 2316.10 and the Nasdaq composite index added 18.95, or 0.3%, 5734.13.  Both the S&P and Nasdaq were up for a fourth straight day.

Miners and other raw materials companies led the market rally and rising crude oil prices also gave energy companies a big boost. Investors kept their focus on strong company earnings and corporate deal news.

Investors have focused on companies quarterly results lately as they size up corporate America’s growth prospects. Earnings are on track to mark the second-consecutive quarter of growth after a losing streak of five straight quarters. Beyond earnings, investors are also eying Washington D.C. for signs the Trump administration will deliver on the promised business-friendly policy proposals that helped drive a market rally last fall, including slashing government regulations and taxes.

Benchmark U.S. crude was up 91 cents, or 1.7%, at $53.91 a barrel in New York. The contract rose 66 cents on Thursday. Brent crude, the benchmark for international oil prices, was up $1.05, or 1.9%, at $56.68 a barrel in London.

 

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 +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 -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%.

Global Equities Encountering Resistance At Year-End

The Global Dow Index is running into its long-term Down trendline stemming from the 2007 all-time peak.

Here in the U.S., equity investors have been a bit spoiled as they’ve watched index after index break into all-time high ground this year. Around the globe, investors have not been so lucky. Yes, most international indices have rallied solidly this year. However, with few exceptions, the rallies have still left these international markets shy of their all-time highs. One illustration of this situation can be seen in a chart of the Global Dow Index (GDOW).

We’ve posted many times on the GDOW due to its reliable conformity to technical charting tools, despite the fact that very little money is traded off of it. Additionally, we have found it to be an accurate barometer of the state of the global equity market. Specifically, the GDOW is an equally-weighted index of 150 of the world’s largest stocks. While this includes U.S.-based companies, its heavy dose of international exposure has led to its aforementioned position below its all-time high.

Furthermore, it is currently running into potential resistance in the form of its post-2007 Down trendline connecting the 2007, 2014 and 2015 tops.

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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 -32 points

Stocks ended slightly lower Wednesday but the major indexes remain near record levels and the Dow is still within striking distance of the big 20,000 milestone.

The Dow Jones industrial average ended down about 32 points, or 0.2% after rising as high as 19,986.56 in the opening minutes of trade. The Dow jumped 91.56 points Tuesday to close at a record 19,974.62.

It’s now at 19,941.96 — about 58 points shy of 20,000.

The Standard & Poor’s 500 index ended down 0.3% and the Nasdaq composite lost 0.2% as it retreated from its record close of 5483.94.

Investors were once again watching the Dow in its ongoing quest for the psychologically-important 20,000 mark as the blue-chip index has made several attempts to break through but each time has 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.

Oil prices were lower as benchmark U.S. crude fell 1.5% to $52.49 per barrel in electronic trading on the New York Mercantile Exchange.

Bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.54% from 2.56% late Tuesday.

Global stock markets were trading in narrow ranges Wednesday.

European markets were mixed as Britain’s FTSE 100 fell less than 0.1% and Germany’s DAX gained less than 0.1%. France’s CAC-40 fell 0.3%.

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.