Closing Comment — November 12, 2019
DJIA: 27,691.49, up 0.00
S&P 500: 3,091.84, up 4.83
Nasdaq Composite: 8,486.09, up 21.81
S&P 500, Nasdaq Close at Fresh Highs
Stocks finished mostly higher Tuesday as investors digested comments from President Trump and weighed corporate earnings results. The S&P 500 added 0.2%, posting a new closing high after exceeding 3,100 for the first time during the session. The Dow ended the day unchanged, while the Nasdaq Composite closed up 0.3%, notching a fresh record level.
In a lunchtime speech to the Economic Club of New York, President Trump noted that the initial part of a broader trade deal with Beijing could be finalized soon, but he also suggested that tariffs on Chinese goods would be increased substantially if no agreement is reached.
On the earnings front, D.R. Horton advanced 3.1% after the home construction company topped Wall Street profit forecasts and projected higher 2020 sales, citing strong demand and lower mortgage rates. Rockwell Automation climbed 10.5% following positive quarterly figures from the factory equipment maker. Advance Auto Parts slid 7.5% after its same-store sales figure missed consensus estimates. CBS Corp. was down 3.6% after delivering disappointing revenue figures amid a sharp decline in advertisement sales. Tyson Foods gained 7.4% following positive remarks concerning the company’s move into alternative meats. In other corporate news, Disney rose 1.4% following the launch of its new Disney+ streaming service.
Treasuries strengthened with the yield on the 10-year note down three basis points to 1.91%. On the data front, the NFIB reported that small business optimism improved in October. In commodities, WTI crude slipped 0.1% to $56.80/barrel, while COMEX gold rose 0.1% to $1,458.80/ounce, still near its lowest level since August.
Midday Comment — November 12, 2019
DJIA: 27,719.34, up 27.85
S&P 500: 3,095.71, up 8.70
Nasdaq Composite: 8,497.52, up 33.24
U.S. Stocks Gain; Push to Record Highs
U.S. equities are higher Tuesday as investors await a speech from President Trump. Market participants are hopeful for positive remarks on the U.S.-China trade negotiations and economic policy later today. The Dow is gaining 27 points, while the S&P 500 is rising 0.3% briefly surpassing the 3,100 level for the first time. The Nasdaq Composite is rising 0.4%, touching a fresh intraday record.
Nine of 11 S&P 500 sectors are in positive territory with Health Care shares pacing gains. In earnings news, Advance Auto Parts is sliding 8.5% after its same-store sales figure missed consensus estimates. Rockwell Automation is surging 12.0% following its quarterly beat. CBS is down 2.3% after beating Wall Street profit estimates, but missed on revenue forecasts and saw a sharp decline in advertisement sales. Disney is up 1.5% following the launch of its new Disney+ streaming service. Breadth is even on both the NYSE and the Nasdaq. Composite NYSE volume is more than 1.3 billion shares.
Treasuries are strengthening, with the yield on the 10-year note down one basis point to 1.93%. The yield spread between the three-month T-bill and 10-year note has widened to 0.36%, which is helping alleviate concerns over a looming economic slowdown. On the data front, the NFIB reported that small business optimism improved in October.
In commodities, WTI crude is adding 0.3% to $57.01/barrel, while COMEX gold is off 0.2% to $1,454.50/ounce, its lowest level since early August.
Opening Comment — November 12, 2019
DJIA: 27,681.24
S&P 500: 3,093.08
Nasdaq Composite: 8,475.31
U.S. Futures Point to Higher Open
U.S. futures are pointing to a slightly higher open Tuesday as investors await a speech concerning trade and economic policy from President Trump later today. Market participants are hopeful for positive remarks on the U.S.-China trade front. The Dow is gaining 0.1%, while the S&P 500 is hovering just above unchanged in pre-market action. The Nasdaq 100 is trading 0.1% above fair value on the GLOBEX.
In earnings this morning, DR Horton is up 2.6% after the home construction company topped Wall Street profit forecasts and projected higher 2020 home sales. Rockwell Automation is jumping nearly 10% following its quarterly beat. Advance Auto Parts is sliding 6.2% after its same-store sales figure missed consensus estimates. Tyson Foods is off 1.5% after missing analyst earnings and revenue expectations.
Treasuries are little changed, with the yield on the 10-year note unchanged at 1.94%. The yield spread between the three-month T-bill and 10-year note has widened to the largest positive gap in a year, currently at 0.39% and helping alleviate concerns over a looming economic slowdown. On the data front, the lone economic release is from the NFIB, which showed small business optimism improved in October. In commodities, WTI crude is adding 0.3% to $57.00/barrel, while COMEX gold is off 0.3% to $1,453.50/ounce, its lowest level since early August.
Overseas, the Euro STOXX 600 is advancing 0.3%, while Germany’s DAX is climbing 0.6% on hopes President Trump could announce a six-month delay on his decision regarding implementing European auto tariffs.