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Wed, 23rd August 2017

Anirudh Sethi Report

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Archives of “US Market” Category

Dow hits another milestone. Tops the 22,000 level

Other indices higher

The Dow has hit another milestone. Perhaps the most referenced but not the broadest, has moved above the 22,000 level for the first time ever.  Bring out the party hats.
You can thank Apple for the gain today.  It had blow-away earnings yesterday after the close.  Boeing has been a big contributor of late as well. It is little changed today.
Four hundred Dow points can be attributed to Boeing on the move up from Dow 21K to 22K (as of the close yesterday). McDonalds has added 177 points, United Health Care 163 points and Caterpillar 106.  The rest has only added 150 points (as of the close yesterday- thank you CNBC).
For your guide, here is a list of the Dow stocks. As mentioned, it is not the best or broadest of indices and has a bias (the higher priced stocks can have a bigger impact on the index) , but it still is at a record.  Remember when it broke 10,000 for the first time (back in 1999?). Dow 10K!
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Overnight US Market :Dow close + 73 points.

The U.S. stock market finished higher Tuesday, with the Dow logging its second straight record and a sixth straight session in positive territory on the back of upbeat earnings, shaking off less-than-stellar reports on manufacturing and inflation.

The Dow Jones Industrial Average DJIA, +0.33%  added 72.80 points, or 0.3%, to finish at an all-time closing high at 21,963.92, marking its 31st record in 2017 and putting the blue-chip gauge within 40 points of a milestone at 22,000. The Dow had touched an intraday all-time high at 21,990.96 before retreating somewhat.

The S&P 500 index SPX, +0.24%  rose 6.05 points, or 0.2%, to 2,476.35, not far from its record close set last week at 2,477.83. Financials and technology were among the best sector performers of the S&P 500’s 11 industry groups.

The Nasdaq Composite Index COMP, +0.23% advanced 14.82 points, or 0.2%, to 6,362.94.

Overnight US MARKET :Dow closed +60 points.

S&P down modestly.  Nasdaq down -0.42%

The US stocks are ending the session mixed.
The broad indices are lower with the tech heavy Nasdaq stocks leading the way lower. The S&P index is down modestly. The Dow 30 stocks are closing at record levels.
The specific levels show:
  • The S&P index fell -1.80 points or -0.07% to 2470.30
  • The Nasdaq index fell -26.552 points or -0.42% to 6348.12
  • The Dow rose 60.81 points or +0.28% to 21891.12

An Update :US Dollar ,Euro ,JPY ,Crude ,US 10-year yield

The month ends on Monday, and the dollar is poised to finish the month lower against all the major currencies, but the Swiss franc. Broadly speaking, the technical condition, which we will discuss below, remains fragile and there is a little sign a significant low is in place.

 In terms of policy, investors appear to put more weight on the forward guidance of central banks that the Federal Reserve. Meanwhile, the failure of the health care reform efforts not only leave the US system is poor shape but warns the Republican leadership may struggle to overcome the divide between moderate and conservative factions to pass the economic agenda of the new administration.  The same broad strategy that was tried with health care is being employed for tax reform:  base approach solely on slim Republican majority, develop plan secretly with a small group of men, hope that it can bridge an intra-party divide that appears bigger than the inter-party rivalry.  

The hubris of small differences can be formidable hurdles, and important legislative action is needed to lift the debt ceiling and to provide spending authorization for the new fiscal year that begins October 1. Maneuvering around the debt ceiling is already distorting the bill market.  The finesse will likely be exhausted in early October.  If it is not resolved it could lead to prioritizing creditors and missing payments.  The failure to agree on spending authorization could shut the government.  A push back against our argument since the June FOMC meeting that the Fed would announce the start of its balance sheet operations in September is that the Fed will not want to move if it looks as if there will be a government shutdown.   The Federal Reserve seems to try to look past such short-run potential disruptions and focus its strategic goals.

Overnight US Market :Dow closed +33.76 points.

Dow closes at a record close

The major US indices are ending the day mixed with the Dow closing at record levels and the broader indices with small declines – although well off the lows.   The markets were able to recover from some negative news including:
  • Much lower Amazon earnings (it still close lower but off lows)
  • Washington healthcare turmoil
  • Scaramucci doing a Trump
  • N. Korea missile launch.
The good news this week, is a lot of earnings were very good.
Looking at the indices today:
  • S&P is closing down -3.32 points or -0.13% at 2472.10. The high was 2473.53. The low was 2464.66
  • Nasdaq closed down -7.51 points or -0.12 points at 6374.67. The high reached 6379.69. The low 6337.22
  • Dow up 33.76 points to a record close at 21830.31. The high reached 21841.18. The low reached 21756.12.
For the week:
  • S&P is ending down -0.02% (so unchanged)
  • Nasdaq is ending down -0.20%
  • Dow is up 1.16%
For the YTD:
  • S&P is up 10.42%
  • Dow is up 10.46%
  • Nasdaq is up 18.42%

Overnight US Market :Dow Closed +85 pts

Nasdaq down -40 points but it was at down -100 points at the lows

The US stocks are ending the session mixed but well off low levels.
The Nasdaq was particularly punished in US afternoon trading falling around -100 points at the low before rebounding to close the day down -40 points or -0.63%.  The index closed at 6382.18. The high reached 6460.84. The low 6318.61.
The other indices showed mixed results but well off lows:
  • The S&P ended down -2.41 points or -0.10% to 2475.42. The high reached 2484.04. The low reached 2459.93
  • The Dow ended up +85.54 or +0.39% to 21796.55.  It closed near the high at 21798.47. The low 21687.85

Overnight US Market : Dow leads the way today. Record closes for Dow and Nasdaq

Boeing (up about 10%) a big influence on the Dow

The US major stock indices are trading mixed.
  • The Dow industrial average is up the most, rising by about 96 points or 0.45%. However 18 of 30 stocks were lower (or very close to being negative). Boeing, however, is up about 10%. Take out Boeing and the Dow would be down on the day
  • The S&P is up about 0.72 points or +0.3%
  • The Nasdaq is up 10.573 points or up +0.16%.
Record closes for the Dow and Nasdaq.