Opening Comment — December 11, 2017
S&P 500: 2,651.50
Nasdaq Composite: 6,840.08
Here’s your Wells Fargo Advisors opening update for 8:51 am Eastern Time, Monday, December 11, 2017.
Stock futures are indicating a slightly higher opening on Monday. The Dow is gaining 0.1% in the premarket while the Nasdaq 100 is adding less than 0.1%. The S&P 500 is trading less than 0.1% above fair value on GLOBEX.
The major averages are poised to open little changed ahead of a busy week of central bank news from around the globe. The Federal Reserve kicks off a two day policy meeting on Tuesday and is widely expected to raise rates for the third time this year at the meetings conclusion. On the data front, a release this morning is anticipated to say job openings climbed in October. In tax reform news, Republicans have announced they are aiming to have their two competing bills reconciled by Friday.
In earnings news, the only companies scheduled to report this week on the S&P 500 are Adobe, Oracle, and Costco. In Healthcare, Celgene Corp is adding 2.5% to $108.64 on positive analyst commentary surrounding the company.
European markets are higher at midsession. The DAX is advancing 0.1% in Frankfurt. The FTSE is up 0.7% in London. In Asia overnight, the Nikkei rose 0.6% to a 26-year high while China’s Shanghai Composite advanced more than 0.9% on the session.
Treasuries are higher this morning. The yield on the 10-year note is down two basis points to 2.35%. In commodities, NYMEX WTI crude is adding 0.2% to $57.49. COMEX gold is up 0.2% to $1251.30 amid a generally weaker dollar.
Midday Comment — December 11, 2017
DJIA: 24,346.14, up 16.98
S&P 500: 2,655.27, up 3.77
Nasdaq Composite: 6,863.80, up 23.72
Here’s your Wells Fargo Advisors midsession update for 12:04 pm Eastern Time, Monday, December 11, 2017.
Stocks are marginally higher Monday. The Dow is gaining 16 points to 24346. The S&P 500 is advancing 3 points to 2655. The Nasdaq Composite is adding 23 points to 6863.
The major averages are slightly higher as the main focus this week will be on central banks around the world. The Federal Reserve kicks off a two day policy meeting on Tuesday and is widely expected to raise rates for the third time this year at the meeting’s conclusion. On the data front, a report revealed U.S. job openings unexpectedly cooled in October from a record in the month prior.
Six of the 11 S&P 500 sectors are higher. Energy stocks are outperforming as Haliburton Co is gaining 2.2% to $44.96. Consumer Staples are underperforming as Kimberly-Clark Corp is declining 1.7% to $118.12 and Kraft Heinz Co is losing 1.5% to $77.28. Verizon is adding 0.8% to $51.52 on news they extended their partnership with the NFL for streaming rights. In other Telecom news, CenturyLink Inc. is rising 9.2% to $16.02. In Technology, Apple is advancing 1.5% to $171.87 on positive analyst commentary.
Breadth is positive on issues by 4:3 on the NYSE and 12:11 on the Nasdaq. Composite NYSE volume is over 1.1 billion shares.
Treasuries are modestly higher at midsession. The yield on the 10-year note is off two basis points to 2.36%. In commodities, NYMEX WTI crude is adding 0.8% to $57.79. COMEX gold is up less than 0.1% $1248.60 amid a weaker dollar.
Closing Comment — December 8, 2017
DJIA: 24,329.16, up 117.68
S&P 500: 2,651.49, up 14.51
Nasdaq Composite: 6,840.08, up 27.24
Here’s your Wells Fargo Advisors closing update for 4:11 pm Eastern Time, Friday, December 8, 2017.
Stocks finished higher Friday. The Dow gained 117 points to 24329 while the S&P 500 advanced 14 points to 2651. The Nasdaq Composite climbed 27 points to 6840.
U.S. equities closed out the week on a positive note as Friday’s jobs report exceeded expectations. On the data front, nonfarm payrolls increased by 228,000 in November above projections of a 195,000 addition. The unemployment rate remained unchanged at a 17-year low of 4.1%. A preliminary reading from the University of Michigan revealed consumer sentiment cooled for the second consecutive month in December. Monetary policy will be in focus next week as the Fed is expected to raise its key benchmark rate for the third time in 2017.
Ten of 11 S&P 500 sectors finished higher. Healthcare shares led the advance as Alexion Pharmaceuticals added 7.2% to $114.46 and Celgene Corp advanced 3.3% to $106.09. Telecom stocks outperformed as AT&T climbed 1.6% to $36.73 and Verizon rose 1.3% to $51.09. The Energy sector provided a tailwind to the market as Schlumberger gained 2.4% to $63.54 in sympathy with oil prices. Beverage maker Coca-Cola underperformed as shares fell 1.0% to $45.31.
Breadth was positive on issues by roughly 3:2 on the NYSE and 8:7 on the Nasdaq. Composite NYSE volume was over 3 billion.
Treasuries were little changed. The yield on the benchmark 10-year note finished up one basis point to 2.38%. In commodities, NYMEX WTI crude added 1.2% to $57.35. COMEX gold lost 0.3% to $1249.70 amid a stronger dollar.
For the week, the Dow gained 0.4%, the S&P added more than 0.3% and the Nasdaq fell 0.1%.
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