Opening Comment — July 20, 2017
S&P 500: 2,473.80
Nasdaq Composite: 6,385.00
Stock index futures are indicating a higher open on Thursday. 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 corporate earnings continue to take center stage on Wall Street. American Express is losing 1.2% to $84.88 despite beating estimates on the top and bottom lines. T-Mobile is climbing 3.7% to $64.24 amid a jump in subscribers and record low customer defections in the quarter. On the data front, initial jobless claims came in at 233,000, below the expected 245,000.
Elsewhere in earnings, Qualcomm is sliding 2.4% to $55.42 as the chipmaker’s quarterly profit was down 40% from a year ago. Nike is gaining 2.6% to $59.25 after being the subject of positive analyst commentary.
European markets are advancing near mid-session with the broad Euro STOXX 600 up 0.2%. The European Central Bank concluded its July policy meeting Thursday leaving interest rates unchanged. Investor attention now moves to ECB President Mario Draghi’s press conference later this morning. In Asia, Japan’s Nikkei 225 added 0.6% after the conclusion of the Bank of Japan July policy meeting. The BOJ raised its economic growth forecasts but once again pushed back its inflation target. Chinese equities finished higher with the Shanghai Composite climbing 0.4% on the session.
Treasuries are edging higher with the benchmark 10-year note up 3/32 to yield 2.26%. In commodities, NYMEX WTI crude is adding 0.6% to $47.39/barrel.. In FOREX, the Dollar Index is gaining 0.3%.
Midday Comment — July 20, 2017
DJIA: 21,589.64, down 51.11
S&P 500: 2,473.22, down 0.61
Nasdaq Composite: 6,387.86, up 2.82
Stocks are fluctuating near mid-session Thursday. The Dow is down 51 points to 21589. The S&P 500 is slipping a point to 2473 and the Nasdaq Composite is gaining 2 points to 6387.
The major averages are trading mostly lower amid increasing political concerns. Earlier this morning, special counsel Robert Mueller stated he’s looking into the business dealings of President Donald Trump, Jared Kushner and other associates. Overseas, the European Central Bank concluded its July policy meeting leaving interest rates unchanged Thursday. ECB President Mario Draghi signaled there hasn’t been any convincing sign of a pickup in inflation. In economic news, initial jobless claims came in at 233,000, below the expected 245,000.
Six of 11 sectors in the S&P 500 are declining near halftime. Financials are underperforming with KeyCorp down 4.6% to $18.19. In Technology, Qualcomm is sliding 4.9% to $53.99 as the chipmaker’s quarterly profit was down 40% from a year ago. Alliance Data Systems is falling 9.1% to $239.22 after lowering its full-year EPS guidance. Elsewhere in earnings, United Rentals is adding 2.6% to $121.73 as quarterly revenue beat Street forecasts amid strength in customer demand. Nike is gaining 2.3% to $59.08 after being the subject of positive analyst commentary.
Breadth is negative on issues by 6-5 on the NYSE and even on the Nasdaq. Composite NYSE volume is 1.3 billion shares.
Treasuries are advancing with the benchmark 10-year note up 7/32 to yield 2.24%. In commodities, NYMEX WTI crude is losing 0.7% to $46.81/barrel. In FOREX, the Dollar Index is retreating 0.6%.
Closing Comment — July 20, 2017
DJIA: 21,611.78, down 28.97
S&P 500: 2,473.45, down 0.38
Nasdaq Composite: 6,390, up 4.96
Stocks finished mixed on Thursday. The Dow was down 29 points to 21611. The S&P 500 traded flat at 2473 and the Nasdaq Composite gained 5 points to 6390.
The major averages fluctuated on the session as investors weighed corporate earnings against political uncertainty in Washington. On Thursday, reports revealed that special U.S. counsel Robert Mueller is looking into the business dealings of President Donald Trump, Jared Kushner and other associates. Overseas, the European Central Bank concluded its July policy meeting leaving interest rates unchanged. In his press conference, President Mario Draghi provided no clear signal about the timing of reducing stimulus measures.
Seven of 11 sectors in the S&P 500 ended in negative territory. Financials underperformed with KeyCorp down 3.7% to $18.37. American Express lost 0.7% to $85.35 despite beating estimates on the top and bottom lines. Technology stocks fluctuated with Qualcomm sliding 5% to $53.97 as the chipmaker’s quarterly profit was down 40% from a year ago. In the consumer space, Sears Holding climbed 10.6% to $9.60 after announcing the launch of Kenmore products on Amazon.com. Appliance-sellers Home Depot and Lowe’s each declined more than 4% amid the news. Elsewhere, Nike gained 2.3% to $59.10 after being the subject of positive analyst commentary.
Breadth was even on issues on the NYSE; positive by 9-8 on the Nasdaq. Composite NYSE volume totaled 3.2 billion shares.
Treasuries advanced with the benchmark 10-year note up 2/32 to yield 2.26%. In commodities, NYMEX WTI crude lost 0.7% to $46.79/barrel. In FOREX, the Dollar Index retreated 0.5%.
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.