Dow climbs in early Friday action as Wall Street attempts to cap tumultuous trading week with an upswing


Stock benchmarks on Friday rose modestly higher as investors looked to close out a volatile, holiday-shortened week that has the tech-heavy Nasdaq Composite on track for its biggest weekly loss since the height of the pandemic-induced market selloff in March.

How are major benchmarks trading?

The Dow Jones Industrial Average
DJIA,
+0.19%

rose 117 points, or 0.4%, to around 27,650, while the S&P 500
SPX,
+0.07%

gained 14 points, or 0.4%, to trade at 3,353. The Nasdaq Composite Index
COMP,
-0.09%

climbed 48 points, or 0.5%, at 10,952. But all three benchmarks were trading off their intraday peak near the open, highlighting the week’s choppy action.

The Dow on Thursday fell 405.89 points, or 1.5%, to close at 27,534.58, while the S&P 500 ended with a loss of 59.77 points, or 1.8%, at 3,339.19. The Nasdaq Composite fell 221.97 points, or 2%, to finish at 10,919.59. Through Thursday, the Dow was down 2.1% for the week, while the S&P 500 was off 2.6% and the Nasdaq was 3.5% lower; markets were closed Monday for Labor Day.

What’s driving the market?

A decline in the S&P 500 index for the week would mark the benchmark’s first back-to-back weekly drop since May.

“While monetary policy is set to remain supportive for several more quarters, valuations are high across assets and volatility is resurfacing,” said Elia Lattuga, co-head of strategy research at UniCredit Bank, in a note. “The breadth of the rally is still limited and the recovery uneven—hence developments in the economic outlook and political risks represent significant threats to risk appetite.”

Stocks were unable to follow through Thursday on a Wednesday bounce that saw equities recover somewhat from a three-day, tech-led rout that pushed the Nasdaq into correction territory, falling more than 10% from its record close set last week.

Weakness on Thursday was partly tied to the inability of U.S. politicians to agree on a new coronavirus rescue package after Democrats blocked a Republican bill on the Senate floor, leaving the way forward unclear, analysts said.

Meanwhile, investors have fretted that the sharp rally that took stocks from their March pandemic lows to new all-time highs had left valuations significantly stretched for the large-cap, tech-related stocks that had led the rally this year. Among those highfliers, shares of Apple Inc.
AAPL,
-0.85%

 and Netflix Inc.
NFLX,
+1.22%

 were on track for weekly declines of more than 6%, while Facebook Inc.
FB,
-0.57%

 is off more than 5%.

In U.S. economic news, the consumer-price index for August rose 0.4% last month, beating average economists’ estimates for a rise of 0.3% but falling below the past two months at 0.6%. On a year-over-year basis, the CPI increased 1.3% after gaining 1.0% in July, the Labor Department said on Friday

Looking ahead, Federal budget figures for August are due at 2 p.m. Eastern.

Which companies are in focus?
What are other markets doing?

The yield on the 10-year Treasury note
TMUBMUSD10Y,
0.675%

 rose 0.4 basis point to 0.687%. Bond prices move inversely to yields.

The ICE U.S. Dollar Index
DXY,
-0.12%
,
which tracks the performance of the greenback against its major rivals, fell 0.1%.

Gold futures
GCZ20,
-0.08%

were off 0.3% at $1,958 an ounce, threatening to snap a three-day winning streak. The U.S. crude oil benchmark
CL.1,
-0.10%

 fell 16 cents, or 0.5%, to $37.13 a barrel.

The Stoxx Europe 600 index
SXXP,
-0.11%

 was edging 0.1% lower, while the U.K.’s benchmark FTSE
UKX,
-0.26%

rose 0.2%. In Asia, Hong Kong’s Hang Seng Index
HSI,
+0.78%

and the Shanghai Composite Index
SHCOMP,
+0.78%

 both rose 0.8%, while Japan’s Nikkei
NIK,
+0.73%

rose 0.7%.



Original source link

U.S. stocks higher at close of trade; Dow Jones Industrial Average up 1.59% By Investing.com


© Reuters. U.S. stocks higher at close of trade; Dow Jones Industrial Average up 1.59%

Investing.com – U.S. stocks were higher after the close on Wednesday, as gains in the , and sectors led shares higher.

At the close in NYSE, the gained 1.59% to hit a new 6-months high, while the index added 1.54%, and the index gained 0.98%.

The best performers of the session on the were Coca-Cola Company (NYSE:), which rose 4.21% or 2.07 points to trade at 51.19 at the close. Meanwhile, Dow Inc (NYSE:) added 4.13% or 1.95 points to end at 49.22 and International Business Machines (NYSE:) was up 3.87% or 4.78 points to 128.18 in late trade.

The worst performers of the session were Apple Inc (NASDAQ:), which fell 2.07% or 2.78 points to trade at 131.40 at the close. Salesforce.com Inc (NYSE:) declined 1.62% or 4.56 points to end at 276.69 and Walmart Inc (NYSE:) was up 0.06% or 0.09 points to 147.68.

The top performers on the S&P 500 were DXC Technology Co (NYSE:) which rose 11.63% to 22.37, Brown Forman (NYSE:) which was up 10.04% to settle at 79.89 and Lam Research Corp (NASDAQ:) which gained 6.50% to close at 362.70.

The worst performers were Cimarex Energy Co (NYSE:) which was down 6.12% to 27.13 in late trade, Diamondback Energy Inc (NASDAQ:) which lost 5.61% to settle at 36.32 and Marathon Oil Corporation (NYSE:) which was down 3.76% to 5.12 at the close.

The top performers on the NASDAQ Composite were Corcept Therapeutics Incorporated (NASDAQ:) which rose 58.45% to 19.87, Lonestar Resources Ltd (NASDAQ:) which was up 39.09% to settle at 0.371 and Vera Bradley Inc (NASDAQ:) which gained 31.98% to close at 7.14.

The worst performers were Sunesis Pharmaceuticals Inc (NASDAQ:) which was down 37.00% to 0.1686 in late trade, Amarin Corporation PLC (NASDAQ:) which lost 30.58% to settle at 5.04 and Jiayin Group Inc (NASDAQ:) which was down 22.67% to 2.90 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1943 to 1090 and 101 ended unchanged; on the Nasdaq Stock Exchange, 1653 rose and 1160 declined, while 82 ended unchanged.

Shares in Brown Forman (NYSE:) rose to 5-year highs; rising 10.04% or 7.29 to 79.89. Shares in Walmart Inc (NYSE:) rose to all time highs; rising 0.06% or 0.09 to 147.68. Shares in Corcept Therapeutics Incorporated (NASDAQ:) rose to 52-week highs; up 58.45% or 7.33 to 19.87. Shares in Sunesis Pharmaceuticals Inc (NASDAQ:) fell to all time lows; down 37.00% or 0.0990 to 0.1686.

The , which measures the implied volatility of S&P 500 options, was up 1.72% to 26.57 a new 1-month high.

Gold Futures for December delivery was down 1.50% or 29.65 to $1949.25 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in October fell 2.74% or 1.17 to hit $41.59 a barrel, while the November Brent oil contract rose 0.09% or 0.04 to trade at $44.41 a barrel.

EUR/USD was unchanged 0.00% to 1.1853, while USD/JPY fell 0.02% to 106.16.

The US Dollar Index Futures was up 0.33% at 92.645.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link

Dow Rides Rally as Defensive Names Shine on Private Jobs Wobble By Investing.com


© Reuters.

By Yasin Ebrahim

Investing.com – The Dow jumped on Wednesday, as defensive concerns of the market like utilities and consumer staples got a chance to shine amid data showing the U.S. economy created fewer than expected private jobs last month.  

The rose 1.08%, or 308 points, the added 1.17%, and  the gained 0.74%.

In a sign that investors could be worried that the run-up in growth stocks like tech is nearing a top, utilities were among the biggest gainers, led by a more than 3% jump in Exelon (NASDAQ:) and PPL (NYSE:).

Consumer staples were not far behind thanks to a more than 4% rise in Coca-Cola Company (NYSE:) and 9% jump in whiskey maker Brown Forman (NYSE:).

Brown Forman reported first-quarter fiscal first-quarter earnings of 67 cents on revenue of $753 million, topping estimates for earnings of 39 cents a share, on revenue of $691.2 million.

Technology lagged the broader move higher as Apple (NASDAQ:) eased 2%, though still remains up about 80% for the year so far. Shares of Apple have been underpinned by growing investor optimism over its upcoming launch of the iPhone 12, which many Wall Street analysts expect will spark a wave of upgrades.

Energy, meanwhile, continued its sluggish start to the week on falling oil prices despite data showing a larger-than-expected 9.3 million barrel draw in weekly stocks.

On the economic front, investors digested data showing the U.S. economy created 428,000 private jobs last month, well short of estimates of 950,000.

“ADP’s measure has undershot the official estimate of private payrolls in recent months, but the error diminished sharply in both June and July.  Assuming a further narrowing of the gap in August, we expect Friday’s official headline print to be about 750,000,” Pantheon Macroeconomics said.

Still, the somber jobs report did little to cool expectations for a strong economic recovery at a time when consumer spending continues to gather steam.

“Consumer spending continued to pick up, sparked by strong vehicle sales and some improvements in tourism and retail sectors, according to the Fed’s said in its Beige Book report. 

In other news, Tesla (NASDAQ:) fell more than 6% after its largest outside shareholder, Baillie Gifford, cut some of its holdings in the company, citing portfolio restrictions in the wake of the massive run higher in the stock. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Original source link

Dow fights for altitude early Tuesday as big tech stocks lead Nasdaq to fresh intraday record


U.S. stock indexes attempted to push higher Tuesday morning, as the buying momentum on Wall Street refused to be deflated, even as investors enter what is expected to be a seasonally challenging month for equities, following the best August returns in more than 30 years.

How are stock benchmarks performing?

The Dow Jones Industrial Average
DJIA,
+0.04%

was up 2 points at 28,433, a less-than 0.1% rise, reversing an opening slide; the S&P 500 index
SPX,
+0.18%

added 7 points to reach 3,507, a rise 0.2%; while the Nasdaq Composite Index
COMP,
+0.77%

advanced 87 points at 11,861, a rise of 0.7%, touching a record intraday high at 11,865.66.

On Monday, the Dow shed 223.82 points, or 0.8%, to end at 28,430.05. The S&P 500
SPX,
+0.18%

fell 7.70 points, or 0.2%, ending at 3,500.31. The Nasdaq rose 79.82 points, 0.7%, to end at a record 11,775.46, its 41st record close of 2020.

The S&P 500 clinched its best August return since 1986 and the Dow its best return for that month since 1984, while the Nasdaq recorded its strongest August since 2000

What’s driving the market?

Buying of large-capitalization growth and technology stocks, a major theme of trading since the coronavirus pandemic took hold in March, appeared set to continue to start trade in September.

Tesla and Apple, underscored that theme early Tuesday, with shares of the electric-vehicle maker and the iPhone creator on pace to extend a rally after splitting their popular shares on Monday.

Still, investors are anxious going into the new month as they wrestle with stock valuations elevated against a backdrop of a Federal Reserve that has implied that it will keep rates ultra-low even if inflation pressures begin to percolate.

Read: The stock market is on a tear, but now comes September, the worst month of the year

“Technology has regained leadership with broad-based movement back to new highs, and Growth dominating, but bifurcation is growing larger,” Mark Newton, technical analyst at Newton Advisors, said.

He cautioned that breadth, or the number of stocks rising versus those declining, is offering a cautious sign. “Breadth has tailed off ‘big-time’ with more than 5 occurrences in the last few weeks of more decliners than advancing issues,” he said.

Read:Here’s what could trigger more stock market pullbacks this year, says Schwab trading expert

The Fed’s new stance on inflation targeting is still being digested on Wall Street and has so far resulted in more pressure on the U.S. dollar, a factor that may also support further buying in stocks that boast large overseas businesses.

In U.S. economic news, the seasonally adjusted IHS Markit final manufacturing sector purchasing managers’ index rose to 53.1 in August, down slightly from the previously released ‘flash’ estimate of 53.6, but up from 50.9 at the start of the third quarter to post the fastest expansion since January 2019.

A closely watched PMI report on manufacturing activity from the Institute for Supply Management for August is due at 10 a.m., with a consensus forecast for 54.7.

Overnight the eurozone IHS manufacturing purchasing managers index pointed to improving conditions in August, as the region’s recovery from the coronavirus pandemic continued, while in China the Caixin purchasing managers index, which is weighted toward small, private manufacturers, rose to 53.1 in August from 52.8 in July.

A report on U.S. construction spending for July also is due at 10 a.m., with report on motor vehicle sales coming throughout the day.

Among Fed speakers, Fed Gov. Lael Brainard is slated to speak at 1 p.m.

Which stocks are in focus?
  • Shares of Tesla Inc.
    TSLA,
    -4.08%

    were down 2.5% on Tuesday after it announced a $5 billion offering, which deflated its momentum after its stock split on Monday.

  • Zoom Video Communications Inc.
    ZM,
    +42.52%

    shares soared 28% early Monday after the company made as much money in May, June and July as it did in all of 2019, beating even the outsize expectations of Wall Street and sending its stock, its recent quarterly results out on Monday revealed.

  • Shares of Eastman Kodak Co.
    KODK,
    +25.20%

    were up more than 36% Tuesday after the company disclosed that D.E. Shaw & Co. has taken a 5.2% stake in the company.

How are other assets trading?

In Asia, China’s CSI 300
000300,
+0.53%

rose 0.5% and Hong Kong’s Hang Seng
HSI,
+0.03%

finished virtually unchanged but in positive territory on the session.

The Stoxx Europe 600
SXXP,
-0.84%

traded 0.1% lower, while U.K.’s FTSE 100 benchmark
UKX,
-1.36%

tumbled 1.5% so far on Tuesday.

The yield on the 10-year Treasury note
TMUBMUSD10Y,
0.716%

added 1.4 basis points to 0.72%, after adding 15.9 basis points during August. Bond prices move inversely to yields.

Gold
GCZ20,
-0.01%

jumped $19.90, or 1%, to $1,998.50 an ounce, trading around its highest level in about two weeks. West Texas Intermediate crude for October delivery
CL.1,
+1.61%

traded 40 cents, or 0.9%, at $43.02 a barrel on the New York Mercantile Exchange.

The ICE U.S. Dollar Index
DXY,
+0.02%
,
which tracks the currency versus a basket of six major rivals, fell 0.3% to extend its decline this year and trade around its lowest level since 2018.



Original source link

Of all the major changes to the Dow on Monday, this may be the most important


The Dow Jones Industrial Average will see a handful of important changes take effect Monday morning, but it is, perhaps, the change to how it is calculated that will be the most important for Wall Street over the near term.

Starting at Monday’s open, the so-called divisor — the figure used to determine the influence of any of the 30 components that make up the price-weighted Dow industrials
DJIA,
+0.56%

— will be changed for the first time since April 2019.  

The move is at least partly precipitated by Apple Inc.’s
AAPL,
-0.16%

fifth stock split in its 40 years as a publicly traded company. Apple’s 4-for-1 stock split set off a cascade of changes by the owners of the blue-chip benchmark, S&P Dow Jones Indices, which added Salesforce.com Inc.
CRM,
-1.88%
,
Amgen Inc.
AMGN,
+0.12%

and Honeywell International Inc.
HON,
+1.44%

to the index, replacing iconic Exxon Mobil Corp.
XOM,
+2.39%
,
Pfizer Inc.
PFE,
+0.13%

and Raytheon Technologies Corp.
RTX,
+2.20%

Read: 3 things to know about Apple’s stock split

Because the value of the Dow is determined by calculating the sum of the prices of its components using a divisor that also factors when a company splits its shares, S&P Dow Jones Indices felt compelled to adjust the makeup of the benchmark. Stock splits can swing the balance of influence for any one blue-chip component.

The new divisor is likely to be 0.152 from around 0.147, Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, told MarketWatch. In other words, a $1 price move in any Dow component translates to a swing of 6.579 points, from around 6.8 points.

Apple’s stock split also may have provided an opportunity for the Dow’s managers to readjust the 124-year equity gauge to better reflect the rapid rise of technology in the broader market in the face of the COVID-19 pandemic. Apple’s split shrinks the weighting of formerly the most important Dow member, to 3% from around 12%, and the overall technology representation in the index to around 20% from 27%. (The addition of Salesforce to the Dow will bring the share of tech in the index to about 23%).

Information technology is by far the largest sector in terms of weighting in the S&P 500 index
SPX,
+0.67%
,
at 27.5%, as of July 31, for example.

DJIA components as of 8/31/20

$Price Rank

1

UnitedHealth Group

314.37

2

Home Depot Inc.

286.29

3

Salesforce.com

271.10

4

Amgen Inc.

253.12

5

Microsoft Inc.

228.91

6

Visa Inc.

215.71

7

McDonald’s Corp.

214.91

8

Goldman Sachs

207.71

9

Boeing Co.

175.80

10

Honeywell International

168.38

11

3M Co.

165.66

12

Johnson & Johnson

153.64

13

Caterpillar Inc.

143.63

14

Walmart Inc.

140.30

15

Procter & Gamble Co.

138.77

16

Walt Disney Co.

135.54

17

IBM

125.07

18

Apple Inc.

124.80 (split-adjusted)

19

Travelers Cos.

115.89

20

Nike Inc.

112.29

21

JPMorgan Chase & Co.

102.77

22

American Express

102.54

23

Merck & Co.

85.65

24

Chevron Corp.

85.63

25

Verizon Communications

59.26

26

Intel Corp.

50.43

27

Coca-Cola Co.

49.83

28

Dow Inc.

46.05

29

Cisco Systems

42.20

30

Walgreens Boots Alliance Inc.

38.76

Source: FactSet

New entrants in bold

S&P Dow Indices explained the overall thinking of altering the divisor as significant in “the index’s ability to provide a continuous measure of market valuation when faced with changes to the stocks included in the index.”

Apple will be ranked 18th in price on the Dow on a split-adjusted basis, while the new entrants in the Dow will all be within the top 10, led by Salesforce.com at No. 3.

All the interest in moves within the Dow industrials may be surprising to some on Wall Street. More than $11 trillion is indexed to the S&P 500, while around $32 billion was indexed to the Dow as of the end of 2019, according to S&P Dow Jones Indices.

That said, the Dow is by far the most well-known, easily understood index in the world.



Original source link