Morning Notes

03/08/2018 - Argonaut Morning Note

Shares of technology companies rallied intraday to lift the S&P 500, even as investors grappled with the Trump administration's threat to deepen its trade spat with China. Tech stocks continued to flex their muscles after several more companies, including car maker Tesla and software company Global Payments, reported upbeat results. The gains spilled over to the broader tech sector, while a post-earnings bounce helped to push Apple's market value above $1 trillion in recent trading, making it the first U.S. company ever to surpass that mark. Even after companies like Facebook and Netflix disappointed investors with weaker-than-expected results, tech firms in the S&P 500 are on pace to grow earnings by 32% from a year earlier, topping the rosy estimates analysts had pegged to the sector last month, according to FactSet. The Dow Jones Industrial Average fell 8 points, or 0.1%, to 25,326 as trade-sensitive stocks like Boeing pulled the blue-chip index lower. The US gold price was down 0.7% to record 1,207.20 US$/oz

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02/08/2018 Argonaut Morning Note

The Dow Jones Industrial Average reversed course intraday as a rebound in technology shares failed to offset investor fears of more U.S. tariffs on Chinese goods. The blue-chip index lost 81 points, or 0.3%, to 25,334 in recent trading, after rising roughly 75 points earlier. The S&P 500 declined 0.1% and the technology-heavy Nasdaq Composite rose 0.4%. News that some administration advisers are urging President Trump to sharply increase tariffs against China renewed fears of a global trade fight hitting the markets. The White House said it is planning on making an announcement later Wednesday on China. Trade worries have weighed on the stock market in recent months, keeping the Dow industrials and S&P 500 off the highs they hit in January. Shares of industrial companies shed 1.3% Wednesday, with heavy-equipment maker Caterpillar losing 3.7%. The US gold price was down 0.6% to record 1,215.50 US$/oz.

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01/08/2018 - Argonaut Morning Note

U.S. stocks edged higher intraday on hopes the U.S. and China will return to trade discussions, while the technology sector started to bounce back after a three-session downturn. The Dow Jones Industrial Average added 108 points, or 0.4%, to 25,415. The S&P 500 gained 0.5%, and the tech-heavy Nasdaq Composite rose 0.7%. Dow futures jumped higher minutes before the market opened after Bloomberg News reported the U.S. and China would return to trade discussions. The potential talks haven't been firmed up, but it was agreed they needed to happen, Bloomberg reported, citing sources familiar with the matter. Shares of Dow components 3M, Boeing and Caterpillar all rose, while the industrial sector was the best performer in the S&P 500, rising 2.1%. The US gold price was up 0.2% to record 1,223.40 US$/oz.

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31/07/2018 - Argonaut Morning Note

U.S. stocks fell intraday as shares of technology companies continued tumbling and investors braced for a busy week of corporate earnings and central-bank meetings. The Dow Jones Industrial Average fell 144 points, or 0.6%, to 25307. The S&P 500 slipped 0.6% and the tech-heavy Nasdaq Composite dropped 1.1%. Tech stocks in the S&P 500 slid 1.6%, with shares of Facebook off 3.5% and Twitter down 7.2% as last week's disappointing earnings reports weighed on sentiment. Netflix, meanwhile, dropped 4.8%, bringing its losses for the month to date to 14%. Despite those companies' high-profile stumbles, the earnings season is shaping up to be strong. As of Friday, 83% of the companies in the S&P 500 that had reported results posted stronger-than-expected earnings and 73% beat estimates on revenue, according to FactSet. The US gold price was down 0.2% to record 1221.00 US$/oz

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30/07/2018 - Argonaut Morning Note

The S&P 500 fell Friday but managed to post its fourth straight weekly advance, as strong earnings from a number of firms helped offset an end-of-week slide in the technology sector. Investors parsed a mixed batch of data and earnings results over the course of the week that broadly suggested the U.S. economy remains strong, even as certain industries have shown signs of weakening. Data Friday showed the U.S. economy grew 4.1% from April through June-the fastest pace in nearly four years, though lower than the expectation of economists surveyed by The Wall Street Journal. Tech titans like Alphabet and Amazon.com reported earnings that blew past analysts' estimates, sending their shares higher. Yet disappointing earnings from a number of other companies put pressure on the technology sector, sparking wild swings. The Dow industrials fell 76 points, or 0.3%, to 25,451 on Friday. The S&P 500 fell 19 points, or 0.7%, to 2,819 and the Nasdaq Composite lost 115 points, or 1.5%, to 7,737. The US gold price gained 0.1% to record 1223.20 US$/oz.

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