Opening Comment — January 13, 2017
S&P 500: 2,270.40
Nasdaq Composite: 5,547.50
Stock index futures are indicating a higher open on Friday. The Dow and S&P 500 are up 0.1% in pre-market action. The Nasdaq 100 is trading 0.2% above fair value on GLOBEX.
The major averages are poised to advance as quarterly earnings from the Financials sector start to trickle in. JPMorgan Chase is adding 0.3% to $86.50 as the investment bank reported profit rose 24% from a year earlier. Bank of America is down 0.8% to $22.74 after posting weaker-than-expected quarterly revenue. On the data front, retail sales rose 0.6% in December, below analyst expectations. In a separate release, producer prices increased 0.3% last month.
Elsewhere in earnings, Blackrock is gaining 0.7% to $381.00 as the asset manager approved a 9% dividend hike and additional share repurchases. Shares of Facebook are up 0.7% to $127.54 after being the subject of positive analyst commentary.
European markets are advancing near mid-session with the broad Euro STOXX 600 up 0.6%. Automakers and health care stocks are rebounding in the session after experiencing their biggest declines in months. The benchmark is currently on pace to finish 0.2% lower for the week. In Asia, Japan’s Nikkei 225 added 0.8% with retail sales advancing amid an optimistic start to corporate earnings season. In China, stocks were mixed after an economic release showed Chinese exports fell sharply amid soft demand.
Treasuries are edging higher with the benchmark 10-year note up 6/32 to yield 2.34%. In commodities, NYMEX WTI crude is losing 0.7% to $52.66/barrel. In FOREX, the Dollar Index is falling 0.2%.
Midday Comment — January 13, 2017
DJIA: 19,910.84, up 19.84
S&P 500: 2,276.06, up 5.62
Nasdaq Composite: 5,583.83, up 36.35
Stocks are advancing near mid-session Friday. The Dow is up 19 points to 19910. The S&P 500 is adding 5 points to 2276 and the Nasdaq Composite is gaining 36 points to 5583.
The major averages are trading in positive territory as investors digest an optimistic start to fourth-quarter earnings season. JPMorgan is adding 0.8% to $86.91 as the investment bank reported that profit rose 24% from a year earlier. On the data front, retail sales increased 0.6% in December, following a 0.2% gain the previous month. In a separate report, a gauge of inflation showed that producer prices ticked up 0.3% last month.
Six of 11 sectors in the S&P 500 are advancing near halftime. Financials are catching a boost from the JPMorgan report with Citigroup gaining 1.3% to $60.00. Shares of Bank of America are up 0.8% to $23.11 amid better-than-expected profit as CEO Moynihan cut expenses. In Health Care, DexCom is surging 29.1% to $87.31 as the company announced CMS has granted coverage of its continuous glucose monitors, a year ahead of expectations. Shares of Infosys are down 6.5% to $14.26 after the IT services firm cut its full-year sales forecast on global economic outlook.
Breadth is positive on issues by 5-2 on the NYSE and 10-3 on Nasdaq. Composite NYSE volume is 1.3 billion shares.
Treasuries are declining with the benchmark 10-year note down 13/32 to yield 2.41%. In commodities, NYMEX WTI crude is falling 1% to $52.49/barrel. COMEX gold is losing 0.4% to $1195.30/ounce.
Closing Comment — January 13, 2017
DJIA: 19,885.73, down -5.27
S&P 500: 2,274.64, up 4.20
Nasdaq Composite: 5,574.12, up 26.63
Stocks finished mixed on Friday. The Dow fell 6 points to 19884. The S&P 500 added 4 points to 2274 and the Nasdaq Composite gained 26 points to close at an all-time high of 5574.
The major averages finished mostly positive territory as investors digested an optimistic start to fourth-quarter earnings season. JPMorgan climbed 0.5% to $86.70 as the investment bank reported that profit rose 24% from a year earlier. On the data front, retail sales increased 0.6% in December, following a 0.2% gain the previous month. In a separate report, a gauge of inflation showed that producer prices ticked up 0.3% last month.
Six of 11 sectors in the S&P 500 finished the session higher. Financials pared most of their weekly loss after this morning’s profit tallies. Bank of America was up 0.4% to $23.01 after the company beat on the bottom line but missed revenue expectations. Blackrock climbed 0.3% to $379.35 after surpassing Wall Street profit and revenue projections. GameStop retreated 8.1% to $22.73 after releasing disappointing holiday sales figures.
Breadth was positive on issues by 5-3 on the NYSE and 12-5 on Nasdaq. Composite NYSE volume was 3.1 billion shares.
Treasuries declined after this morning’s economic data with the benchmark 10-year note losing 8/32 to yield 2.39%. In commodities, NYMEX WTI crude fell 0.9% to $52.54/barrel. COMEX gold lost 0.1% to $1198.20/ounce. For the week, the Dow lost 0.4%, the S&P 500 inched 0.1% lower, while the Nasdaq climbed 1.0%.
Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly-owned subsidiary of Wells Fargo & Company and provides investment advice to Wells Fargo Bank, N.A., Wells Fargo Advisors, and other Wells Fargo affiliates. Wells Fargo Bank, N.A. is a bank affiliate of Wells Fargo & Company.