Opening Comment — July 22, 2016
S&P 500: 2,165.20
Nasdaq Composite: 5,073.90
Stock index futures are indicating a higher open Friday. The Dow is up 0.1% in pre-market action. The S&P 500 and Nasdaq 100 are trading 0.2% above fair value on GLOBEX.
The major averages are poised to recover from yesterday's decline as investors digest more corporate earnings releases. On the data front, an update on U.S. manufacturing will be released shortly after the opening bell.
In earnings, General Electric is losing 2.3% to $31.85 as the company cited weak demand for oil and gas and transportation equipment due to the slow, volatile economy. AT&T is down 0.9% to $42.15 after reporting a decline in pay-TV customers for the quarter.
European markets are fluctuating near mid-session amid mixed economic data. Purchasing manager's index data for the Eurozone was stronger-than-expected while the U.K. PMI survey revealed business activity in Britain contracted at its fastest pace since April 2009. The broad Euro STOXX 600 is down 0.2% while the U.K.'s FTSE 100 is adding 0.4%. In Asia, Japan's Nikkei 225 fell 1.1% as expectations of further stimulus measures were tempered by the ECB's decision to leave interest rates unchanged. Comments by Bank of Japan's Governor Kuroda dismissing the possibility of "helicopter money" pushed the yen higher against the dollar, sending Japanese shares lower.
Treasuries are declining with the benchmark 10-year note down 7/32 to yield 1.58%. In commodities, NYMEX WTI crude is ticking up 0.1% to $44.79/barrel. COMEX gold is losing 0.4% to $1325.50/ounce. In FOREX, the dollar is climbing 1% against the British pound.
Midday Comment — July 22, 2016
DJIA: 18,543.5, up 26.27
S&P 500: 2,171.90, up 6.73
Nasdaq Composite: 5,099.5, up 25.6
Stocks are advancing near mid-session Friday. The Dow is up 26 points to 18543. The S&P 500 is adding 6 points to 2171 and the Nasdaq Composite is gaining 25 points to 5099.
The major averages are trading in positive territory as investors weigh mixed corporate earnings releases. Shares of Visa are up 0.7% to $79.31 as the credit card issuer announced a $5 billion share repurchase program. General Electric is losing 2.3% to $31.85 despite quarterly revenue increasing 15% year-over-year. On the data front, Markit's survey of U.S manufacturing rose to 52.9 in June, above expectations of a 51.5 reading and last month's 51.3 reading.
Nine of 10 sectors in the S&P 500 are gaining near halftime. Telecom stocks and Utilities are outperforming while Industrials are lagging. AT&T is adding 1.8% to $43.29 after reporting an increase in wireless subscribers for the quarter. American Airlines is up 2.7% to $35.89 as the company's profit topped consensus estimates on lower fuel costs. Honeywell is down 3.3% to $114.70 after revenue missed analyst forecasts. PayPal is a notable decliner falling 6.7% to $37.46 after receiving negative analyst commentary.
Breadth is positive on issues by 3-2 on the NYSE and 7-4 on Nasdaq. Composite NYSE volume is 1.3 billion shares.
Treasuries are fluctuating with the benchmark 10-year note down 1/32 to yield 1.55%. In commodities, NYMEX WTI crude is retreating 2% to $43.87/barrel. COMEX gold is losing 0.6% to $1322.80/ounce. In FOREX, the dollar is climbing 1.1% against the British pound.
Closing Comment — July 22, 2016
DJIA: 18,570.79, up 53.56
S&P 500: 2,175.03, up 9.86
Nasdaq Composite: 5,100.16, up 26.26
Stocks finished higher on Friday. The Dow was up 53 points to 18570. The S&P 500 added 9 points to 2175 and the Nasdaq Composite gained 26 points to 5100..
The S&P 500 advanced for its fourth consecutive week as a rally in Utilities outweighed concerns of mixed earnings reports. AT&T added 1.4% to $43.11 as the telecommunications giant matched Wall Street estimates and increased wireless subscribers. General Electric lost 1.6% to $32.06 with news the company reported a 2% drop in orders this quarter. On the data front, Markit's survey of U.S manufacturing rose to 52.9 in June, above expectations of a 51.5 reading and last month's 51.3 reading.
All 10 sectors in the S&P 500 finished in positive territory. Utilities and Telecom Stocks were the best performing groups. American Airlines gained 4% to $36.36 as the company's profit bested expectations on lower fuel costs. Whirlpool was up 2.7% to $187.61 as the appliance maker raised its full-year earnings forecast. Honeywell was down 2.6% to $115.58 after revenue missed analyst projections. PayPal was a notable decliner falling 6.8% to $37.42 after receiving negative analyst commentary.
Breadth was positive on issues by 3-2 on the NYSE and 5-3 on Nasdaq. Composite NYSE volume was more than 3.01 billion shares.
Treasuries were mixed with the benchmark 10-year note down 3/32 to yield 1.56%. In commodities, NYMEX WTI crude fell 1.3% to $44.19/barrel. COMEX gold lost 0.6% to $1323.40/ounce.
In FOREX, the dollar climbed 1% against the British pound. For the week, the Dow was up 0.3%, the S&P 500 gained 0.6% and the Nasdaq Composite added 1.4%.