Dow Hangs On for Fourth Straight Win

Microsoft call options are in high demand. Plus, 2 struggling pharma stocks; a bull note for Energizer; and Anaplan stock approaches oversold status.

The Dow snagged its fourth straight win today, good for its longest winning streak since July 15. Trade tailwinds had the Dow up almost 100 points at its session highs to tap the 26,900 level, and despite paring most of those gains, the blue-chip index ultimately finished in the black. However, the S&P 500 and Nasdaq finished mixed, with tech stocks causing a drag. More specifically, the latest antitrust probe from 50 attorneys general has put big-name tech stock Alphabet (GOOGL) in the cross-hairs.

Continue reading for more on today’s market, including:

The Dow Jones Industrial Average (DJI – 26,835.51) recorded a 38.1-point, or 0.1%, gain. Walgreens Boots Alliance (WBA) had the best day of the 16 blue-chip gainers, finishing up 5.8%, while Merck (MRK) led the 14 laggards with its 3.6% drop.

The S&P 500 Index (SPX – 2,978.43) shed 0.3 point, or just under 0.01%, while the Nasdaq Composite (IXIC – 8,087.44) closed down 15.6 points, or 0.2%.

The Cboe Volatility Index (VIX – 15.27) gained 0.3 point, or 1.8%.

closing indexes summary sept 9

nyse and nasdaq stats sept 9

5 Items on our Radar Today

  1. North Korea has indicated it would be willing to restart nuclear talks with the U.S. later this month. Vice North Korean Foreign Minister Choe Son Hui said Pyongyang was willing to have “comprehensive discussions” with U.S. officials in late September, but the U.S. State Department hasn’t announced any meetings. (Reuters)
  2. J.P. Morgan Securities is taking steps to quantify the impact of President Donald Trump’s tweets. The bank has created a “Volfefe Index” to analyze how Trump’s Twitter blasts have impacted implied rate volatility for short-term bonds, as the Fed has increasingly become a target of his social media posts. (CNBC)
  3. Bad data sent these drug stocks stumbling.
  4. Energizer stock’s latest bull note has put short sellers on notice.
  5. Oversold Anaplan stock just broke critical trendline support.

There are no earnings to report today.

unusual options trading sept 9

Data courtesy of Trade-Alert

Four Straight Wins for Oil; Three Straight Losses for Gold

Oil prices finished higher today for their fourth straight gain, getting a lift from news that newly minted Saudi energy minister, Prince Abdulaziz bin Salman, backed his country’s commitment to planned cartel production curbs. October-dated crude futures added $1.33, or 2.4%, to settle at $57.85 per barrel — their highest finish since late July.

Gold fell again today — its third straight loss — as the metal’s safe-haven appeal takes a hit amid the latest U.S. equity rally. Gold futures for December delivery closed down $4.40, or 0.3%, to settle at $1,511.10 an ounce.

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Stock futures higher as robust Chinese data eases growth worries

O>, Qualcomm Inc <QCOM.O> and Micron Technology Inc <MU.O> rose between 0.7% and 3% in premarket trading. Goldman Sachs Group Inc <GS.

By Uday Sampath Kumar

(Reuters) – U.S. stocks rose on Wednesday as upbeat data from China’s services sector eased concerns about a global economic slowdown, while Hong Kong’s withdrawal of a controversial bill supported sentiment.

Activity in China’s services sector expanded at the fastest pace in three months in August, providing a boost to the world’s second-largest economy that has been struggling to reverse a prolonged slump in its manufacturing sector.

Sentiment also got a lift after Hong Kong leader Carrie Lam withdrew an extradition bill that had triggered months of often violent protests in the Chinese-ruled city.

The three main indexes had come under pressure on Tuesday after the United States and China imposed new tariffs on each other’s goods and data showed a contraction in U.S. factory activity in August.

“The positive economic news out of China is offsetting the weak manufacturing data from the U.S. yesterday and diminishes the fear of an economic downturn,” said Shawn Gibson, chief investment officer at asset management firm Liquid Strategies.

“Global growth and not just U.S. growth is a very important narrative for investors because a strong Chinese economy is important to our economy as well,” Gibson added.

Markets struggled last month as escalating trade tensions and the inversion of a key part of the U.S. yield curve, often seen as a sign of recession, drove investors away from risky assets and pushed the S&P 500 <.SPX> to log its worst August in four years.

Further easing concerns of a slowdown were comments from New York Federal Reserve President John Williams who said he is ready to “act as appropriate” to help the United States avoid an economic downturn but so far the economy appeared to be in a good place.

Ten of the 11 major S&P sectors were higher, with a 1.05% rise in technology stocks <.SPLRCT> providing the biggest boost.

Trade-sensitive chipmakers accounted for a major portion of those gains, with the Philadelphia Semiconductor index <.SOX> up 2.18%.

Bank stocks <.SPXBK> rose 2.18%, bouncing back from a selloff on Tuesday when the 10-year U.S. Treasury yield <US10YT=RR> hit its lowest since July 2016.

UBS slashed its forecasts for global growth and government bond yields, predicting 10-year U.S. yield, the benchmark for global borrowing costs, would end the year at just 1%.

Gibson said the nonfarm payrolls report due Friday will be very critical, because any sort of weakness in data could push Treasury yields even lower and signal that bond investors are concerned about an upcoming recession.

At 10:17 a.m. ET the Dow Jones Industrial Average <.DJI> was up 148.56 points, or 0.57%, at 26,266.58, the S&P 500 <.SPX> was up 16.88 points, or 0.58%, at 2,923.15 and the Nasdaq Composite <.IXIC> was up 57.02 points, or 0.72%, at 7,931.18.

Tyson Foods Inc <TSN.N> shares fell 5.2% to the bottom of the S&P 500 after the United States’ biggest meat processor cut its 2019 earnings forecast.

PVH Corp <PVH.N> jumped 3% as the Calvin Klein-owner’s chief executive officer, Emanuel Chirico, on Tuesday announced plans to buy company shares.

Data showed the U.S. trade deficit narrowed slightly in July as exports rebounded, but the gap with China surged to a six-month high.

Advancing issues outnumbered decliners by a 4.17-to-1 ratio on the NYSE and by a 2.47-to-1 ratio on the Nasdaq.

The S&P index recorded 52 new 52-week highs and one new low, while the Nasdaq recorded 44 new highs and 38 new lows.

(Reporting by Uday Sampath and Shreyashi Sanyal in Bengaluru; Editing by Anil D’Silva)

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Stocks – S&P Surges as Trade Tensions and Recession Fears Fade

Investing.com – Stocks surged for a third-straight day on optimism about a U.S.- China trade deal and fewer worries about a recession hitting any time …

Investing.com – Stocks surged for a third-straight day on optimism about a U.S.- China trade deal and fewer worries about a recession hitting any time soon.

With Monday’s rally, the major averages have recovered most of the losses suffered in last week’s wild gyrations.

The S&P 500 was up 1.2%, and the Dow Jones industrials rose nearly 1%. The Nasdaq Composite jumped 1.35% and moved above 8,000 for the first time in four sessions.

Chip stocks led technology shares higher after the Trump Administration extended its reprieve on penalties for doing business with Huawei, the Chinese telecommunications equipment company. The Philadelphia Semiconductor Index rose nearly 1.9%. Nvidia (NASDAQ:NVDA) and Micron Technology (NASDAQ:MU) were the leaders.

That was about the only real news on the China-U.S. trade fight, but it was good enough.

Twenty-eight of the 30 Dow stocks were higher, led by Cisco Systems (NASDAQ:CSCO) and chemical maker Dow Inc (NYSE:DOW). At their highs in the morning, the blue chips were up as many as 336 points.

The tech-dominated Nasdaq 100 index, up 115 points, or 1.52%, was led by Chinese internet retailer Baidu (NASDAQ:BIDU), Nvidia and Wynn Resorts (NASDAQ:WYNN), one of the biggest players in Macau.

In addition, oil prices moved higher on hopes that any kind of deal could boost oil demand. West Texas Intermediate crude was up $1.33 to $56.14 a barrel on Monday. Brent crude, the global benchmark, was up $1.10 to $59.74. WTI is still down more than 15% from its $66.30 peak in April.

The demand for stocks pulled interest rates higher, with the 10-Year Treasury yield rising 4.4% to 1.608%, its highest level since Aug. 13. The 2-Year Treasury yield rose to 1.549%.

Since Wednesday’s shocking selloff that saw the Dow fall about 800 points, the blue-chip index is up 2.6%. The S&P 500 has rebounded 2.92% and the Nasdaq Composite has risen 2.94%.

Volatility has dominated markets as the worries have intensified about the economic impact of the U.S.-China trade battle. It has affected business in both countries. Electronics companies have become especially vulnerable to the shifting political winds. U.S. farmers have been stressed because China has been their largest export market. While the two sides are starting to communicate, no deal is expected until next year at the earliest.

In the 14 trading days so far in August, the Dow has experienced nine days with gains or losses of at least 239 points. The S&P 500 has moved up or down 1% or more on eight occasions and the Nasdaq has seen eight days of 100-point gains or losses.

There is plenty of opportunity for more volatility over the next four weeks with earnings reports expected from Home Depot (NYSE:HD), Kohl’s (NYSE:KSS), Lowe’s (NYSE:LOW), Target (NYSE:TGT), Nordstrom (NYSE:JWN) and Dick’s Sporting Goods (NYSE:DKS).

There will also be minutes from the Federal Reserve’s July meeting due Wednesday and every word uttered at the Fed’s annual retreat in Jackson Hole. Wyo., will be scrutinized. All of this will lead up to the Fed’s September meeting when the central bank is expected to trim its key federal funds rate.

While bond markets have been signaling the potential of a recession in the next year or two, it’s not clear if consumers are paying much attention.

Lastly, watch to see if the major averages can hit new highs. So far, new highs in the last two years have been met by near-immediate selloffs.

Winners and Losers in the S&P 500

Estee Lauder (NYSE:EL), Nvidia and Wynn were among the top S&P 500 performers on Monday.

Alliance Data Systems (NYSE:ADS), which organizes concepts like brand-centric bank credit card programs, health insurer DaVita HealthCare Partners (NYSE:DVA) and troubled conglomerate General Electric (NYSE:GE) were among the worst-performing stocks.

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US STOCKS-Wall St rebounds on tech strength, eyes shift to earnings

Qualcomm slides on weak rev, profit forecast … Qualcomm Inc dropped 0.29% after the chipmaker’s quarterly revenue and profit forecasts missed Wall …

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Verizon rises as Q2 profit beats estimates

* Kellogg jumps on quarterly profit, sales beat

* Qualcomm slides on weak rev, profit forecast

* Indexes up: Dow 1.01%, S&P 500 0.99%, Nasdaq 1.50% (Updates to early afternoon)

By Shreyashi Sanyal and Karina Dsouza

Aug 1 (Reuters) – U.S. stocks rebounded on Thursday from a steep selloff in the prior session, boosted by technology shares, as investors shrugged off a cautious outlook from the Federal Reserve on interest rate cuts and focused on corporate earnings. The U.S. central bank reduced borrowing costs by a widely-expected quarter of a percentage point on Wednesday, but Fed Chairman Jerome Powell signaled a series of further cuts was unlikely, leading to a sharp selloff on the S&P 500 and Dow.

Despite that, all three major indexes posted their second straight monthly gains in July, closing the book on a month in which the S&P 500 and the Nasdaq reached fresh record highs.

“As people thought about the cut overnight, it really wasn’t such a big change from what they expected. The Fed isn’t going to keep cutting if the economy shows signs of improvement, but they may cut ahead,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The two big issues for the markets have been the U.S.-China trade talks and the Fed rate cut, which are now momentarily behind us, Meckler said.

Earnings reports so far have been robust with 355 companies in the S&P 500 that have reported second-quarter earnings, 74.4% have beaten Street estimates for profit, according to Refinitiv data.

The S&P 500 technology sector, Wall Street’s best performer so far this year, rose 2.10%, recovering from a 1.5% drop in the previous session, helped by shares of Microsoft Corp and Apple Inc.

Verizon Communications Inc rose 1.09%, contributing to a 1.22% gain in the communication services sector, after the wireless carrier beat quarterly profit estimates.

The Dow Jones Industrial Average rose 271.77 points, or 1.01%, to 27,136.04 and the S&P 500 gained 29.57 points, or 0.99%, to 3,009.95. The Nasdaq Composite added 122.60 points, or 1.5%, to 8,298.02.

Kellogg Co jumped 8.18% after it beat analysts’ expectations for quarterly sales and profit, driven by higher demand for its snacks in North America.

Qualcomm Inc dropped 0.29% after the chipmaker’s quarterly revenue and profit forecasts missed Wall Street targets.

Among other decliners, the energy sector slid 0.78%, the most among the 11 major S&P sectors, as oil prices declined as rising U.S. output helped keep the market well supplied and on Fed commentary on further rate cuts.

Shares of oil major Exxon Mobil Corp dropped 0.63%, ahead of its earnings report on Friday.

Investors awaited the Labor Department’s nonfarm payrolls data to gauge the strength of the domestic labor market. The report is expected to show private payrolls added 164,000 jobs in July, according to a Reuters survey, after surging by 224,000 in June.

Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.77-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and five new lows, while the Nasdaq recorded 68 new highs and 60 new lows. (Reporting by Shreyashi Sanyal and Karina Dsouza in Bengaluru; Editing by Arun Koyyur)

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US STOCKS-Wall St bounces back on tech strength, focus shifts to earnings

Qualcomm slides on weak rev, profit forecast … Qualcomm Inc dropped 2.30% after the chipmaker’s quarterly revenue and profit forecasts missed Wall …

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* Verizon rises as Q2 profit beats estimates

* Kellogg jumps on quarterly profit, sales beat

* Qualcomm slides on weak rev, profit forecast

* Indexes up: Dow 1.01%, S&P 500 0.95%, Nasdaq 1.47% (Updates prices, adds comments)

By Shreyashi Sanyal

Aug 1 (Reuters) – U.S. stocks bounced back on Thursday from a steep selloff in the prior session, boosted by technology shares as investors shrugged off a cautious outlook from the Federal Reserve on interest rate cuts and focused on corporate earnings. The U.S. central bank reduced borrowing costs by a widely-expected quarter of a percentage point on Wednesday, but Fed Chairman Jerome Powell signaled a series of further cuts was unlikely, leading to a sharp selloff on the S&P 500 and Dow.

Despite that, all three major indexes posted their second straight monthly gains in July, closing the book on a month in which the S&P 500 and the Nasdaq reached fresh record highs.

“As people thought about the cut overnight, it really wasn’t such a big change from what they expected. The Fed isn’t going to keep cutting if the economy shows signs of improvement, but they may cut ahead,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

The two big issues for the markets have been the U.S.-China trade talks and the Fed rate cut, which are now momentarily behind us, so investors have now shifted their focus to individual earnings, Meckler said.

Earnings reports so far have been robust with 355 companies in the S&P 500 that have reported second-quarter earnings, 74.4% have beaten Street estimates for profit, according to Refinitiv data.

The S&P 500 technology sector, Wall Street’s best performer so far this year, rose 2%, recovering from a 1.5% drop in the previous session, helped by shares of Microsoft Corp and Apple Inc.

Verizon Communications Inc rose 1.14%, contributing to a 1.36% gain in the communication services sector, after the wireless carrier beat quarterly profit estimates.

The Dow Jones Industrial Average rose 270.23 points, or 1.01%, to 27,134.5 and the S&P 500 gained 28.29 points, or 0.95%, to 3,008.67.

The Nasdaq Composite added 119.97 points, or 1.47%, to 8,295.39.

Kellogg Co jumped 9.63% after the company beat analysts’ expectations for quarterly sales and profit, driven by higher demand for its snacks in North America.

Qualcomm Inc dropped 2.30% after the chipmaker’s quarterly revenue and profit forecasts missed Wall Street targets.

Among other decliners, the energy sector slid 0.96%, the most among the 11 major S&P sectors, as oil prices declined as rising U.S. output helped keep the market well supplied and on Fed commentary on further rate cuts.

Shares of oil major Exxon Mobil Corp dropped 0.54%, ahead of its earnings report on Friday.

Investors awaited the Labor Department’s nonfarm payrolls data to gauge the strength of the domestic labor market. The report is expected to show private payrolls added 164,000 jobs in July, according to a Reuters survey, after surging by 224,000 in June.

Advancing issues outnumbered decliners by a 1.69-to-1 ratio on the NYSE and by a 2.14-to-1 ratio on the Nasdaq.

The S&P index recorded 19 new 52-week highs and five new lows, while the Nasdaq recorded 59 new highs and 53 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)

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