Opening Comment — January 15, 2019
DJIA: 23,909.84
S&P 500: 2,582.61
Nasdaq Composite: 6,905.92
Stock index futures are indicating a mixed open Tuesday. The Dow is down 0.1% while the S&P 500 is gaining 0.1% in pre-market trading. The Nasdaq 100 is trading 0.4% above fair value on GLOBEX.
The major averages are fluctuating before the bell as fourth quarter earnings reports begin to trickle in. Yesterday, U.S. benchmarks declined following a disappointing data release out of China, which showed exports in the country fell to the lowest level in two years in December. On the data front today, an update on the Producer Price Index revealed that prices decreased 0.2% in December. Core PPI, which excludes food and energy, showed wholesale inflation was up 2.7% from the same period last year. In a separate release, manufacturing in the New York Fed region expanded at the slowest pace since 2017 in January.
In earnings, JPMorgan is slipping 2.6% to $98.30 after missing consensus Wall Street profit expectations for the first time in 15 quarters. UnitedHealth is off 1.6% to $244.00 despite topping profit and revenue expectations and reaffirming its full year guidance.
European markets are mixed at mid-session with the Euro STOXX 600 up 0.1%. The DAX is off 0.2% after a data report showed Germany’s 2018 GDP grew at its slowest rate in five years. In Asia overnight, the Nikkei 225 added 1% while the Shanghai Composite gained 1.4%.
Treasuries are strengthening with the yield of the benchmark 10-year note down one basis point to 2.69%. In commodities, WTI crude is adding 1.4% to $51.24/barrel. COMEX gold is down 0.1% to $1289.90/ounce.
Midday Comment — January 15, 2019
DJIA: 24,052.28, up 142.44
S&P 500: 2,608.34, up 25.73
Nasdaq Composite: 7,014.63, up 108.72
Stocks are higher near mid-session Tuesday. The Dow is adding 142 points to 24,052 while the S&P 500 is climbing 25 points to 2,608. The Nasdaq Composite is gaining 108 points to 7,014.
U.S. stocks are advancing as broad strength in the Tech sector is boosting the major averages. On the data front today, an update on the Producer Price Index (PPI) revealed that prices decreased 0.2% in December. Core PPI, which excludes food and energy, showed wholesale inflation was up 2.7% from the same period last year. In a separate release, manufacturing in the New York Fed region expanded at the slowest pace since 2017 in January.
Nine of 11 S&P 500 sectors are trading higher near mid-session. The Communication Services group is pacing gains as Netflix is rising 6.6% to $355.03 after the streaming giant announced its largest ever monthly service charge increase. Technology stocks are also broadly higher as Microsoft is adding 2.4%. to $104.66. In earnings news, JPMorgan is gaining 0.8% to $99.74 even after missing profit expectations for the first time in 15 quarters. Elsewhere, UnitedHealth is adding 3.0% to $255.40 after topping profit and revenue expectations and reaffirming its full year guidance.
Breadth is positive on issues by 9:5 on the NYSE and roughly 2:1 on the Nasdaq. Composite NYSE volume is more than 1.4 billion shares.
Treasuries are mixed with the yield of the benchmark 10-year note advancing one basis point to 2.71%. In commodities, WTI crude is adding 2.5% to $51.75/barrel. COMEX gold is down 0.2% to $1288.60/ounce.
Closing Comment — January 15, 2019
DJIA: 24,065.59, up 155.75
S&P 500: 2,610.30, up 27.69
Nasdaq Composite: 7,023.84, up 117.92
Stocks finished higher Tuesday. The Dow added 155 points to 24,065 while the S&P 500 climbed 27 points to 2,610. The Nasdaq Composite gained 117 points to 7,023.
The major averages snapped a two-day losing streak amid broad strength in the Tech and Healthcare sectors. News that China’s central bank will boost efforts to foster economic growth also lifted investor sentiment. On the data front, an update on inflation revealed the Producer Price Index (PPI) decreased 0.2% in December. Core PPI, which excludes food and energy, showed wholesale prices rose 2.7% from the same period last year. In a separate release, manufacturing in the New York Fed region expanded at the slowest pace since 2017 in January.
Nine of 11 S&P 500 sectors finished higher. The Communication Services group paced gains with Netflix rising 6.5% to $354.64 after the streaming giant announced its largest ever monthly service charge increase. Health Care also outperformed with shares of UnitedHealth adding 3.5% to $256.84 after topping profit and revenue expectations. Technology stocks were also broadly higher with Microsoft adding 2.9%. to $105.01. In other earnings news, JPMorgan gained 0.7% to $101.68 despite missing profit expectations for the first time in 15 quarters.
Breadth was positive on issues by roughly 2:1 on both the NYSE and the Nasdaq. Composite NYSE volume was more than 3.5 billion shares.
Treasuries were mixed with the yield of the benchmark 10-year note advancing one basis point to 2.71%. In commodities, WTI crude added 3.2% to $52.11/barrel. COMEX gold was down 0.2% to $1,288.90/ounce amid a stronger dollar.