Morning Notes

07/06/2018 - Argonaut Morning Note

The Dow Jones Industrial Average headed toward its highest close in nearly three months Wednesday, with markets calm as investors weighed the latest signals on international trade. Stocks have risen lately despite worries that protectionist policies could slow trade and weaken the global economy, damping growth and hurting markets. Some investors still believe trade compromises between the U.S. and other countries, including China, will eventually resolve the conflicts. China has offered to purchase nearly $70 billion of U.S. farm, manufacturing and energy products if the Trump administration abandons threatened tariffs, The Wall Street Journal reported Tuesday. Trade tensions and political uncertainty surrounding Italy and other countries remain threats to the market rally, but some analysts still think strong earnings and favourable growth in the U.S. can power major indexes higher. The Dow industrials added 1.4%, to 25146. The S&P 500 rose 0.9% after a recent resurgence in tech stocks helped the index notch a third straight session of advances Tuesday, while the Nasdaq Composite edged up 0.3% and was on track for a fresh record. The US Gold price was steady at 1,295.90 US$/oz.

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06/06/2018 - Argonaut Morning Note

U.S. stocks bounced between small gains and losses intraday, as shares of technology companies continued climbing and financial stocks declined with government bond yields. The Dow Jones Industrial Average fell 14 points, or 0.1%, to 24800, and the S&P 500 dropped less than 0.1%. The tech-heavy Nasdaq Composite - which closed at a record high Monday - rose 0.1%. Tech stocks in the S&P 500 have risen 6.3% over the past month, marking a shift after investors fled the sector in March amid fears of increased regulatory scrutiny as Facebook faced questions over its sharing of user information. Now, tech stocks are looking more attractive, investors say, even as tighter trade policies have dented investors' confidence in the global growth story that had driven stocks to records last year. The US Gold price was higher by 0.3% to 1,295.80 US$/oz

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05/06/2018

U.S. stocks started the week higher as the latest sign of a strong domestic economy overshadowed jitters over the back-and-forth on trade. Though concerns about the pace of growth world-wide have emerged lately, the advance in major indexes followed a big bounce in stocks Friday that came amid dimming worries about Italian politics and an upbeat U.S. employment report. The tech-heavy Nasdaq Composite was on track to close at a fresh record. Markets in Europe, Hong Kong and Japan vaulted higher as well. The Dow Jones Industrial Average was up 0.7% in the last half-hour of trading. The S&P 500 gained 0.4%. The Nasdaq Composite added 0.6%, on track to break its March 12 all-time closing high. Technology heavyweights helped buoy markets, extending a spell of confidence in one of this year's most volatile groups. Over the weekend, the Trump administration showed no sign of backing down from restrictive tariffs in the face of pushback from allies and China. Beijing separately said it wouldn't abide by any agreement to buy more U.S. products without assurances that the U.S. wouldn't go ahead with plans to hit it with tariffs on Chinese imports. The US Gold price declined 0.1% to 1,291.50 US$/oz.

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04/06/2018 - Argonaut Morning Note

The Dow Jones Industrial Average rose more than 200 points Friday to recoup most of its losses for the week following an upbeat unemployment report that showed a modest gain in wages. Investors got a dose of good news about the U.S. economy after the Labor Department released its May unemployment report, which showed a healthy gain in jobs that pushed the unemployment rate to 3.8%, the lowest since April 2000, and a modest gain in wages. The robust jobs report helped steady a stock market that had been struggling this week with concerns about escalating trade tensions and eurozone stability, which eased after Italy struck a deal on a coalition government. The Dow industrials added 219 points, or 0.9%, to 24635. The S&P 500 rose 29 points, or 1.1%, to 2735, while the Nasdaq Composite added 112, or 1.5%, to 7554. Buoyed by the jobs report, investors bought shares of technology companies, a popular trade that contributed to much of the nine-year stock rally's gains. Tech stocks in the S&P 500 rose nearly 2% on Friday, with Facebook adding $2.21, or 1.2%, to $193.99 – its highest close ever. Still, Friday's gains weren't enough to lift the Dow industrials out from the heavy selling it suffered earlier in the week, when political drama in Italy and the Trump administration's push to enact tariffs on key allies sent the Dow down triple digits during two of the four trading sessions. The blue-chip index of 30 stocks fell 0.5% this week, while the S&P 500 and Nasdaq rose 0.5% and 1.6%, respectively. The US Gold price declined 0.4% to 1,293.10 US$/oz.

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01/06/2018

The Dow Jones Industrial Average slid nearly 300 points intraday after the Trump administration made good on its plan to impose tariffs on steel and aluminium imports.   Investors broadly sold off shares of big manufacturers and globe-spanning corporations over concerns that trade tariffs imposed on steel and aluminium products from Canada, Mexico and the European Union will ignite a trade war that could hurt corporate profits, push up inflation faster than expected and possibly disrupt the synchronized global growth upswing that fuelled much of the market's historic climb last year. The Dow industrials slid 252 points, or 1%, to 24,416 in recent trading. The S&P 500, which was also weighed down by weak earnings from discount retailers Dollar General and Dollar Tree, shed 0.8%. The Nasdaq Composite fell 0.3%, as shares of tech companies fared better than peers. The US Gold price declined 0.2% to 1,297.90US$/oz.

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