A report saying that there are text messages showing Boeing executives worked to hide safety problems from the FAA sent shares of the industrial giant down 6.38% in the biggest slide since Feb 2016. Shares of J&J were also soft on a lawsuit.
The S&P 500 is consolidating ahead of the all-time high of 3027.
US stocks continue to bask in the glow of the China trade truce.
The S&P 500 is up 16 points to 3006 and trading has been narrow since the open. Shares of Netflix, JPMorgan and Alcoa are higher after reporting earnings. That’s the highest since Sept 24 and about 0.7% from the all-time high.
I’m watching Netflix as a bit of a barometer. It closed at $287 before earnings yesterday after the close. It opened at $318 but has given up virtually all the gains and is at $292.
US and European stocks jumped, government bonds sold off and the pound leapt as investors remained hopeful British and EU negotiators were close to a draft deal on Brexit. The S&P 500 finished 1 per cent higher in New York on Tuesday in a broad-based rally that was the benchmark’s fourth advance in five sessions and left it about 1 per cent from its record high close in late July. Healthcare was the best-performing sector in the index as investors cheered earnings from Johnson & Johnson, while the telecommunications services and technology sectors were next best. Several key banks including JPMorgan, Citigroup, Wells Fargo and Goldman Sachs reported earnings ahead of the open in New York. In early trade, JPMorgan was the standout gainer, but the broad market rally today ultimately lifted the share prices of rivals.
The Nasdaq Composite rose 1.2 per cent. US Treasuries tumbled, driving yields higher. The yield on the benchmark 10-year Treasury was up 1.8 basis points to 1.771 per cent, having been down 4 bps earlier in the session. European stocks extended gains to leave the broad Stoxx 600 up 1.1 per cent and Germany’s Dax up 1.2 per cent. London’s FTSE 100 closed fractionally lower. Sterling was up 1.2 per cent in afternoon trade in New York to $1.2766 and gained 1.3 per cent against the euro to €1.1572, its highest since May, spurred along by a Bloomberg report that UK and EU negotiators were now close to a draft Brexit deal.
Reflecting the sell-off in the government bond markets, the yield on the UK 10-year Gilt was up 0.6 bps to 0.699 per cent, while that on the Germany’s 10-year Bund rose 1.9bp to minus 0.405 per cent. Earlier in the day, Michel Barnier, Brussels’ chief Brexit negotiator, has said a new withdrawal deal between the EU27 and the UK is “still possible” this week, but warned that it has become “more and more difficult” as the clock ticks towards a crucial bloc summit starting on Thursday. Figures released earlier Tuesday showed investor sentiment about the German economy declined less than expected in October, while remaining subdued over worries about the US-China trade war and the potential for a disruptive Brexit. Asian equity markets were mixed, with Japan’s Topix outperforming as traders returned from a holiday.
China’s CSI 300 gauge of Shanghai- and Shenzhen-listed names fell 0.4 per cent after data showed consumer price inflation increased at its fastest pace in six years in September. US Treasury secretary Steven Mnuchin warned overnight that a new round of tariffs set for December 15 on $156bn of Chinese goods would be triggered if Beijing failed to seal the limited deal tentatively struck with Donald Trump last week, underlining the fragility of that truce. “Not enough was achieved to alter meaningfully the fundamental global economic outlook, in our view,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “We maintain an underweight to equities. We will be looking for signs of progress on unresolved trade issues and a response in the economic data that might lead us to reassess our positioning.”
The new earnings season is starting this week in the United States. This means that stocks of the largest American companies will likely make big moves. Below we have gathered some important information for those who want to trade on these releases.
Citigroup is the forth fourth biggest of the four “too big to fail” American banks. It has a long history of reporting better-than-expected earnings: that happened during the past 18 quarters. This time, analysts expect the bank to once again deliver good results.
Apart from earnings per share and revenue, investors will look at Citigroup’s margins (the bigger, the better for the stock) and the buyback program (the bigger, the better for the stock).
Technically, this year the stock of Citigroup has performed rather well after having a bad 2018. The price has firstly recovered 50% of the last year’s decline and then consolidated in a broad range between $61 on the downside and $73 on the upside.
However, Citigroup still didn’t manage to regain the highs of 2018 as bank stocks, in general, are pressured by the falling interest rates. Now it’s closer to the upper border of this sideways range, in the $70.00 area: the stock got support from the 50- and 100-week MAs at $65 and $68.25. Notice, however, that both weekly and daily MAs are horizontal.
This means that the price lacks overall momentum. The movement after the earnings report should be tied to the mentioned technical levels.
The US major stock indices are ending the day with modest declines. The Columbus Day holiday limited price action. Government offices and agencies were closed as was the bond market. However the US stock market and futures markets were open.
The final numbers are showing:
The S&P index -4.12 points or -0.14% at 2966.15
The NASDAQ index -8.391 points or -0.10% at 8048.64
The Dow industrial average is down -29.23 points or -0.11% at 26787.30.
Buy the rumour, sell the fact. Major indices closing near intraday lows.
Perhaps a little buy the rumour selll the fact. Nevertheless, the major US stock indices are ending the day with decent (over 1%) gains in trading today. It is just not as good AND the major indices are ending nearer the intraday lows for the day.
The final numbers are showing:
S&P index, +32.13 points or 1.09% at 2970.26, The high reached 2993.28
NASDAQ index up 106.257 points or 1.34% at 8057.04. The high reached 8115.797.
Dow industrial average rose 330 points or 1.25% at 26814. The high reached 26975.
Below is a view of the low, high and close % changes.
Secretary of the Treasury Mnuchin has left the trade meetings without saying anything to the press. Pres. Trump is to meet with China vice premier on Friday. Who knows how the cards fall but the major indices traded with confidence today. Hopes for a Brexit solution (or at least some progress with UK and Ireland) may have also contributed to a better tone.
The final numbers are showing:
The S&P index rose 18.73 points or 0.64% at 2938.13
The NASDAQ index rose 47.038 points or 0.60% at 7950.78
The Dow rose 150.66 points or 0.57% at 26496.62.
The percentage high, low and close for the major indices in North America and Europe are shown in the chart below:
The major indices are ending the session with gains but some late day headlines from China that the blacklist announced earlier in the week, has lowered their trade expectations for the trade meetings this week (or so they say). Those meetings will begin tomorrow and are expected to go through Friday.
Although of the highs, the indices have retraced some of the declines from yesterday that saw the NASDAQ index fall -1.67%. The S&P index fall -1.56%, and the Dow fall -1.19%.
Today the closing levels are showing:
The NASDAQ index up 79.9 points or 1.02% at 7903.74. The high reached 7930.91. The low extended to 7873.516
The S&P index up 26.43 points or 0.91% at 2919.49. The high extended to 2929.32. The low reached 2907.41
The Dow industrial average up 181.97 points or 0.70% at 26346.02. The high reached 26424.31. The low extended to 26249.75.
Below is a graphical representation of the high, low and close percentage changes.