Opening Comment — October 16, 2017
S&P 500: 2,553.20
Nasdaq Composite: 6,605.80
Stock index futures are indicating a higher open Monday as investors prepare for more corporate earnings releases. The Dow and S&P 500 are both up 0.1% in the pre-market. The Nasdaq 100 is trading 0.2% above fair value on GLOBEX.
The major averages are poised to extend their recent advances as third-quarter earnings season picks up this week. Consensus forecasts are for S&P 500 profits to increase 3.0% year-over-year during the three month period ending on September 30, according to Bloomberg. On the economic data front, a report showed the pace of manufacturing activity in the Fed’s New York district unexpectedly rose in October.
Shares of Charles Schwab are edging up 0.2% to $44.80 before the online broker’s quarterly results this morning. Netflix is climbing 1.2% to $201.94 ahead of its schedule earnings release after the close. Railroad operator CSX is falling 1.3% to $52.14 before its earnings results tonight. Sprint is gaining 2.2% to $7.28 amid reports it’s close to announcing a merger with T-Mobile.
European markets are mostly higher at midsession. The FTSE is up 0.1% in London and the DAX is gaining 0.2% in Frankfurt. In Asia overnight, the Nikkei rose 0.5% in Tokyo. China’s Shanghai Composite declined 0.4% on the session.
Treasuries are lower along the yield curve this morning. The 10-year is down 4/32 to 2.29% and the 30-year bond is off 9/32 to 2.82%. In commodities, NYMEX WTI crude is advancing 1.6% to $52.29/barrel. COMEX gold is up 0.2% to $1303.80/ounce.
Midday Comment — October 16, 2017
DJIA: 22,909.80 +38.08 +0.17%
S&P 500: 2,555.24 +2.07 +0.08%
Nasdaq Composite: 6,620.41 +14.61 +0.22%
Stocks are slightly higher near midsession Monday .The Dow is up 38 points to 22909. The S&P 500 is adding 2 points to 2555. The Nasdaq Composite is gaining 14 points to 6620.
The major averages continue to rise as investors digest another round of corporate earnings announcements. The lone data release on Monday revealed the pace of manufacturing activity in the Fed’s New York district unexpectedly rose in October. In central bank news, Janet Yellen spoke at an international banking seminar on Sunday and reiterated the Feds’ plan for gradual interest rate increases remains appropriate, even with the soft U.S. inflation numbers.
Six of 11 S&P 500 sectors are higher with Telecom a notable outperformer. AT&T is rebounding from last week’s lows with its shares up 1.5% to $36.24. In earnings news, Charles Schwab is down 1.1% to $44.23 after a mixed earnings report. In M&A news, Nordstrom is falling 6.3% to $39.96 following reports the company has scrapped plans to go private. In Technology, Apple is gaining 1.5% to $159.41 on positive analyst commentary. In other news, Netflix is losing 0.1% to $199.17 ahead of its earnings announcement after today’s close.
Breadth is negative on issues by 7:6 on the NYSE and even on the Nasdaq. Composite NYSE volume is over 1.1 billion shares.
Treasuries are lower with the yield on the benchmark 10-year note up one basis point to 2.29%. In commodities, NYMEX WTI crude is advancing 0.6% to $51.75/barrel. COMEX gold is up 0.2% to $1304.80/ounce.
Closing Comment — October 16, 2017
DJIA: 22,957, up 85.20
S&P 500: 2,557, up 4.50
Nasdaq Composite: 6,624, up 18.20
Stocks finished higher Monday .The Dow was up 85 points to 22957. The S&P 500 added 4 points to 2557. The Nasdaq Composite gained 18 points to 6624.
The major averages continued their rise as investors digested several corporate earnings releases and tax reform updates. In a speech on Monday, President Trump and Senate leader Mitch McConnell reiterated their expectations that a tax reform bill would be passed before the end of 2017. On the data front, a report showed the pace of manufacturing activity in the Fed’s New York district unexpectedly rose in October.
Seven of 11 S&P 500 sectors were higher with Financials a notable outperformer. Shares of JP Morgan were up 2.1% to $97.84 and Bank of America added 1.6% to $26.24 on positive analyst commentary surrounding both banks. Healthcare underperformed on Monday, with Allergan falling 3.5% to $198.41 on reports the company lost a patent lawsuit. In earnings news, Charles Schwab was down 0.6% to $44.47 after a mixed earnings report. Netflix gained 1.6% to $202.68 ahead of its earnings announcement following today’s close.
Breadth was even on issues on the NYSE and negative on issues by 8:7 on the Nasdaq. Composite NYSE volume was over 2.8 billion shares.
Treasuries finished the session lower with the yield on the benchmark 10-year note up two basis points to 2.30%. In commodities, NYMEX WTI crude advanced 0.7% to $51.87/barrel, near a six month high. COMEX gold was down 0.7% to $1295.10/ounce amid a stronger dollar.
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