Opening Comment — April 23, 2018
DJIA: 24,462.94
S&P 500: 2,670.14
Nasdaq Composite: 7,146.13
Stock index futures are indicating a slightly higher open Monday. The Dow is up 0.1% while the S&P 500 is rising 0.2% in premarket action. The Nasdaq 100 is trading 0.3% above fair value on the GLOBEX.
The major averages are set to advance as investors anticipate another busy week of corporate earnings releases. U.S. equities edged higher last week, though gains were pared during a choppy trading session Friday amid rising Treasury yields. On the data front, a manufacturing update revealed activity decelerated in the Fed’s Chicago region in March. Existing home sales data will be released later this morning.
In earnings, consumer products company Kimberly-Clark is gaining 1.9% to $101.97 in the pre-market after posting quarterly results that topped consensus forecasts. Hasbro Inc. is dropping 7.0% to $77.00 before the opening bell after the toymaker missed analyst estimates on both the top and bottom line. Oilfield services provider Halliburton is off 1.7% to $51.08 despite posting a 34% surge in revenue.
European bourses are mixed at mid-session. The European STOXX 600 is off less than 0.1% while the DAX is up less than 0.1% in Frankfurt. The FTSE 100 is essentially unchanged in London. In Asia overnight, Japan’s Nikkei lost 0.3% in Tokyo while China’s Shanghai Composite slipped 0.1%.
Treasuries are slightly weaker with the yield on the benchmark 10-year note advancing two basis points to 2.97% after climbing as high as 2.99% earlier this morning. In commodities, WTI crude is losing 1.5% to $67.35/barrel. COMEX gold is down 0.8% to $1327.00/ounce amid a stronger dollar.
Midday Comment — April 23, 2018
DJIA: 24,488.52, up 25.58
S&P 500: 2,678.76, up 8.62
Nasdaq Composite: 7,177.22, up 31.09
Stocks are advancing near mid-session. The Dow is adding 25 points to 24488. The S&P 500 is climbing 8 points to 2678 while the Nasdaq Composite is up 31 points to 7177.
The major averages are higher ahead of another busy week of corporate earnings releases. Interest rates are also in focus with the yield on the benchmark 10-year note currently gaining three basis points to 2.98%, flirting with the 3.00% threshold. On the data front, a preliminary reading from Markit revealed both manufacturing and services activity is accelerating more than expected in April. A separate report showed that March existing home sales increased 1.1% month-over-month.
Nine of 11 S&P 500 sectors are in positive territory with Consumer Discretionary shares pacing gains near mid-session. In earnings, consumer products company Kimberly-Clark is losing 1.7% to $98.36 and oilfield services provider Halliburton is off 0.9% to $51.47 despite both companies posting quarterly results that topped consensus. In other corporate news, Alcoa is tumbling 11.6% to $53.07 amid reports the U.S. has softened the sanctions levied against Russian company Rusal. Shares of Merck are gaining 1.3% to $59.61 after positive clinical trials of a new lung cancer drug have led the company to be upgraded by several Wall Street analysts.
Breadth is positive on issues by 3:2 on the NYSE 9:7 on the Nasdaq. Composite NYSE volume is more than 1.2 billion shares.
In commodities, WTI crude is losing 0.8% to $67.88/barrel. COMEX gold is down 0.9% to $1324.10/ounce. In FOREX trading the U.S. Dollar Index is adding 0.6% against its peers.
Closing Comment — April 23, 2018
DJIA: 24,448.69, down 14.25
S&P 500: 2,670.29, 0.15
Nasdaq Composite: 7,128.60, down 17.52
Stocks finished lower Monday. The Dow lost 14 points to 24448 while the S&P 500 closed flat at 2670. The Nasdaq Composite was down 17 points to 7128.
The major averages declined in afternoon trading, erasing earlier gains. Investor focus remains on corporate earnings releases, as well as rising interest rates as the yield on the 10-year note advanced three basis points to 2.98%, nearing the 3.00% threshold. On the data front, a preliminary reading from Markit revealed both manufacturing and services activity accelerating more than expected in April. A separate report showed existing home sales increased 1.1% in March.
Six of 11 sectors in the S&P 500 finished in positive territory with Energy leading advancers. Technology shares lagged with Micron Technology sliding 3.2% to $49.02. In earnings, consumer products company Kimberly-Clark lost 1.5% to $98.52 despite posting quarterly results above consensus estimates. In other corporate news, Alcoa tumbled 13.5% to $51.90 amid reports the U.S. has softened the sanctions levied against Russian company Rusal. Merck gained 2.4% to $60.25 after positive clinical trials of a new lung cancer drug led to several analyst upgrades.
Breadth was negative on issues by 11:9 on the NYSE and 11:8 on the Nasdaq. Composite NYSE volume was more than 2.9 billion shares.
In commodities, WTI crude advanced 0.8% to $68.97/barrel. COMEX gold was down 1.1% to $1322.50/ounce. In FOREX trading, the U.S. Dollar Index added 0.7% against its peers, advancing to its best level in over three months.
Wells Fargo Investment Institute, Inc., is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.