Morning Notes

06/04/2018 Argonaut Morning Note

The Dow Jones Industrial Average was on track to rise for a third consecutive day, a first for the blue-chip index in more than a month, as some investors temporarily put aside their concerns about trade and bought shares of stocks that have been struggling. Shares of Boeing and other manufacturing giants led the Dow higher intraday, a sign that investors were less wary of an all-out trade war after the U.S. signalled a willingness to reach a trade compromise with China. Shares of chemicals and mining companies, some of which have stumbled since the steel and aluminium tariffs were first unveiled, also rose. Despite the recent gains, some money managers say the market hasn't stabilized. The Dow traded in a broad range after swinging 741 points a day earlier. The blue-chip index rose as much as 358 points in morning trading and gave up most of those gains before resuming its climb, eventually finishing up 241 points to finish 24,505. The S&P 500 rose 0.7% whilst the NASDAQ rose 0.5%. The U.S. gold price dropped back overnight, shedding 0.5% to finish at 1,326.20 US$/oz.

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05/04/2018 Argonaut Morning Note

Major stock indexes recovered their early losses in another volatile session Wednesday, as investors bet the recent trade disruptions between the U.S. and China are negotiating tactics and the countries will ultimately reach a compromise. Shares of chip makers, manufacturers and machinery companies initially came under pressure after China unveiled plans for a series of retaliatory tariffs on American goods. But stocks erased those declines in afternoon trading, as some analysts said knee-jerk selling on worries that protectionist trade policies could slow global economic growth might have been overdone. The Dow Jones Industrial Average added 1% after dropping as much as 510 points in the opening minutes of trading. The S&P 500 climbed 1.2%, and the Nasdaq Composite gained 1.5%. China's tariffs would place 25% duties on major American exports to China including airplanes, autos and soybeans, covering 106 categories of products and affecting $50 billion of goods. The announcement came hours after the Trump administration unveiled plans to impose tariffs of 25% on Chinese products worth $50 billion in addition to the levies introduced on steel and aluminium last month. Retaliatory Chinese levies on U.S. pork and fruit went into effect earlier this week. Recent trade worries have come as unease over stricter regulation and data privacy have dragged down highflying technology and internet stocks that led the market higher in recent months. The U.S. gold price was largely unchanged overnight, rising 0.05% to finish at 1,332.80 US$/oz.

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04/04/2018 Argonaut Morning Note

U.S. stocks jumped in the last hour of trade, sending all 11 S&P 500 sectors higher after a rocky start to the quarter. Trading was volatile, with stock indexes hovering between small gains and losses before buying accelerated in the final hour of the trading day. The Dow Jones Industrial Average finished 389 points higher, or 1.6%, to 24,033, recouping losses after falling nearly 2% Monday, while the S&P 500 added 1.3% and the tech-heavy Nasdaq Composite climbed 1%. Technology shares helped lead the rebound, with all of the so-called FAANG stocks -- which includes Facebook, Amazon.com, Apple, Netflix and Google parent Alphabet – rising following a heavy bout of selling Monday. Facebook rose 0.6%, while Apple added 1% and Amazon rose 1.9%. The U.S. gold price was sold down as a result of the market bounce back, dropping 0.64% to finish at 1,332.20 US$/oz.

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03/04/2018 Argonaut morning note

U.S. stocks tumbled on the first day of the second quarter, as sliding technology shares and rising global trade tensions dragged major indexes lower. The Dow Jones Industrial Average fell 1.9%, after logging its biggest quarterly loss in more than two years. The S&P 500 lost 2.2%, and the Nasdaq Composite declined 2.7%, re-joining the other two indexes in negative territory for 2018. Technology shares pressured the market after a fresh string of negative news for many of the industry's leading companies. Amazon.com shed 4.3% as President Donald Trump took to Twitter to blast the company's business practices. Tesla slipped 4.1% following rebukes from the National Transportation Safety Board over the disclosures it mad e about a fatal crash involving one of its vehicles. And Facebook, whose handling of users' data has come under increasing scrutiny in recent weeks, fell 2.2%, deepening declines after its biggest one-quarter percentage loss since 2016. The selling added to what has been a rough patch for the technology sector, which after leading the stock market higher at the start of the year tumbled toward the end of the first quarter.

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29/03/2018 Argonaut morning note

Shares of some large technology firms came under further pressure Wednesday amid fears of increased regulatory oversight, while major stock indexes swung between gains and losses in another volatile session. The tech-heavy Nasdaq Composite dropped 0.9%, underperforming the Dow industrials and the S&P 500, which were only down 0.04% and 0.3%, respectively. All three indexes had fallen in four of the past five sessions entering Wednesday. After powering the broader market for the past year, technology and internet stocks have fallen recently, dragging the broader market down with them. The S&P 500's information technology sector, which has fallen about 5% over the past week, was down 0.6% Wednesday. The consumer discretionary sector, which houses tech-focused giants such as Amazon.com and Netflix, dropped 1.1%. Backlash over how social-media firms manage user data and doubts that Facebook and Alphabet can extend their dominance in digital advertising have hurt sentiment in recent sessions. Those challenges have cropped up at a time when the prospect of higher interest rates and trade disruptions had already made investors nervous about the tech sector, which is still up 24% over the past year. The U.S. gold price traded 1.5% lower overnight, falling to 1,324.40 US$/oz.

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