Opening Comment — February 15, 2019
DJIA: 25,439.39
S&P 500: 2,745.73
Nasdaq Composite: 7,426.95
Stock index futures are set to open higher Friday. The Dow and S&P 500 are both adding 0.3% in pre-market action. The Nasdaq 100 is trading 0.3% above fair value on the GLOBEX.
The major averages are poised to open higher as investors assess the latest trade updates. Yesterday, U.S. equities fluctuated as weak January retail sales weighed on investor sentiment. In trade related news, reports this morning indicate the U.S. and China are making progress towards a formal memorandum and expect to have further negotiations in Washington D.C. next week. On the data front, a survey is anticipated to reveal industrial production increased by 0.1% in January. Additional updates today include a reading on import and export prices for the month of January and a report on consumer sentiment levels for the month of February.
In earnings, PepsiCo is adding 2.6% to $115.48 after the beverage maker topped analyst profit projections. Shares of Deere & Co are off 4.3% to $155.50 after the heavy equipment manufacturer missed Wall Street earnings estimates.
European markets are mostly higher near mid-session. The Euro STOXX 600 up 0.8%, while the FTSE 100 is gaining 0.4% in London. In Asia overnight, the Shanghai Composite fell 1.4% while the Hong Kong’s Hang Seng declined 1.9%. Meanwhile, Japan’s Nikkei 225 dipped 1.1%.
Treasuries are little changed with the yield on the 10-year note up one basis point to 2.66%. In commodities, WTI crude is adding 1.0% to $54.94/barrel. COMEX gold is up 0.3% to $1313.60/ounce amid a stronger dollar.
Midday Comment — February 15, 2019
DJIA: 25,802.82, up 363.43
S&P 500: 2,769.24, up 23.51
Nasdaq Composite: 7,454.27, up 27.32
Stocks are higher near mid-session Friday. The Dow is adding 363 points to 25,802 while the S&P 500 is up 23 points to 2,769. The Nasdaq Composite is climbing 27 points to 7,454.
The major averages are advancing amid optimism on the trade front. Reports this morning indicated the U.S. and China are making progress towards a formal memorandum with further negotiations expected next week. On the data front, industrial production unexpectedly slipped 0.6% in January which follows the prior month’s downwardly revised 0.1% gain. A separate update showed the Empire State manufacturing index rebounded in February after dipping to a one-year low in January. An additional report revealed both import and export prices declined more than expected in the prior month. A preliminary reading from the University of Michigan showed consumer sentiment is increasing more than anticipated in February.
All 11 S&P 500 sectors are higher near midday with the Financials and Energy groups pacing gains. In earnings, PepsiCo is adding 3.2% to $116.18 after the beverage maker topped analyst profit projections. Shares of NVIDIA are climbing 3.4% to $159.63 after the chipmaker bested consensus profit projections. Newell Brands is bucking the uptrend, slumping 19% to $17.57 after the providing disappointing guidance.
Breadth is positive on issues by 5:1 on the NYSE and by 3:1 on the Nasdaq. Composite NYSE Volume is more than 1.4 billion shares.
Treasuries are weakening with the yield on the 10-year note up two basis point to 2.67%. In commodities, WTI crude is adding 2.2% to $55.62/barrel. COMEX gold is up 0.3% to $1313.60/ounce.
Closing Comment — February 15, 2019
DJIA: 25,883.25, up 443.86
S&P 500: 2,775.60, up 29.87
Nasdaq Composite: 7,472.41, up 45.46
Stocks finished higher Friday. The Dow climbed 443 points to 25,883 while the S&P 500 gained 29 points to 2,775. The Nasdaq Composite climbed 45 points to 7,472.
The Dow and Nasdaq each notched their eighth consecutive weekly advance amid optimism on the trade front. Reports indicated the U.S. and China have made progress towards a formal memorandum, and have plans for further negotiations next week. On the data front, industrial production unexpectedly slipped 0.6% in January which follows the prior month’s downwardly revised 0.1% gain. An additional report revealed both import and export prices declined more than expected in the prior month. A preliminary reading from the University of Michigan showed consumer sentiment is increasing more than anticipated in February.
All 11 S&P 500 sectors ended higher with the Financials and Energy groups pacing gains. In earnings, PepsiCo gained 3.0% to $115.91 after the beverage maker topped analyst profit projections. Shares of NVIDIA added 1.8% to $157.34 after the chipmaker bested consensus profit projections. Newell Brands bucked the uptrend, slumping 20.1% to $17.16 after Rubbermaid’s parent company provided disappointing guidance.
Breadth was positive on issues by 5:1 on the NYSE and by 2:1 on the Nasdaq. Composite NYSE Volume was more than 3.6 billion shares.
Treasuries weakened with the yield on the 10-year note up one basis point to 2.66%. In commodities, WTI crude added 2.4% to $55.72/barrel. COMEX gold gained 0.6% to $1318.10/ounce.
For the week, the Dow jumped 3.1%, while the S&P 500 gained 2.5%. The Nasdaq advanced 2.4%, closing 20% above its December low.