Morning Notes

26/04/2018 Argonaut Morning Note

The Dow Jones Industrial Average gained 60 points Wednesday, following a 5-day losing streak. On Wednesday, major benchmarks opened higher but turned sharply lower in afternoon trading. Nine of the 11 sectors in the S&P 500 slumped, while the utilities and telecommunications—two areas generally considered safety plays because of their hefty dividends--climbed. The blue-chip index was down 1.8% in the last hour of trading, on track for its longest losing streak since March 2017, when the market fell for eight straight days. Overnight, the S&P 500 gained 0.2% and the Nasdaq Composite fell 1.7%. Despite a relatively strong start to the earnings season, even companies that have topped expectations haven't been rewarded at the same pace as in recent quarters, and some analysts have warned solid results may already be priced into the market. The US gold price fell overnight by 0.1% to finish at 1,322.60 US$/oz.

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24/04/2018 Argonaut Morning Note

U.S. stocks came under selling pressure in afternoon trade Monday, as rising bond yields weighed on Wall Street sentiment. The closely watched yield on the 10-year Treasury note climbed, approaching a psychologically important 3% level. The Dow Jones Industrial Average fell 0.1%, and the S&P 500 index was stable. Technology and consumer staples shares were notable declines, down 0.7% and 0.5%, respectively. The Nasdaq Composite Index shed 0.3%. Bond yields, which are reflecting a rise in inflation expectations, were on the march higher Monday, a continuation of gains logged last week. While strong earnings results should keep stocks underpinned in the short term, investors should not "drop their guard" given the charge higher for U.S. bond yields, said Konstantinos Anthis, head of research at ADS Securities. The US gold price fell overnight by 0.8% to finish at 1324.20 US$/oz.

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23/04/2018 Argonaut Morning Note

U.S. stocks tumbled into the end of the trading week, wiping out much of the gains they had accumulated during a string of upbeat corporate earnings reports. Major indexes struggled for traction after the opening bell, then extended losses in afternoon trade, with the Dow Jones Industrial Average shedding nearly 300 points at its session low. To some, the slowdown in the stock rally this year shows investors have already largely priced in solid earnings growth. The Dow industrials fell 201.95 points, or 0.8%, to 24462.94 for its third straight daily loss.

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20/04/2018 Argonaut Morning Note

On US markets, consumer-staples stocks tumbled intraday, pulling the S&P 500 lower as investors showed signs of fatigue after three straight days of gains. Investors were jarred by the weak performance of some of the world's biggest consumer product companies that reported earnings results. That sent shares of those companies into a tailspin. Although investors have been more muted in their response to companies that are reporting stronger-than-expected results so far, those that miss expectations or offer weak guidance have faced a harsh rebuke from investors. The S&P 500 fell 0.6% in recent trading, while the Dow Jones Industrial Average slipped 83 points, or 0.3%, to 24665. The US gold price rose overnight by 0.3% to finish at 1,345.30 US$/oz.

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19/04/2018 Argonaut Morning Note

The S&P 500 rose for the third straight session Wednesday, lifted by gains in industrial firms and a continued rise in commodity prices. Some investors have said worries about strikes in Syria have faded into the background in recent sessions, putting the spotlight on robust corporate earnings growth. Despite those sources of market stress and a turbulent start to the year, some investors expect strong first-quarter results to boost stocks. The S&P 500 was on track for its ninth day of gains in the past 12 sessions, and the Dow industrials on Tuesday climbed back into positive territory for 2018. The S&P 500 added 0.2% Wednesday. The Dow Jones Industrial Average was down 39 points, or 0.2%, at 24748, and the Nasdaq Composite edged up 0.2%. With 10% of the S&P 500 companies having reported quarterly results as of Wednesday morning, roughly 80% of them have beaten analyst earnings and sales expectations. Gains in airline stocks propelled the index's industrials sector to a 1.3% gain. U.S. crude oil surged to around a fresh three-year high and lifted shares of energy firms. The US gold price rose overnight by 0.1% to finish at 1,349.20 US$/oz.

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