Morning Notes

16/06/2017 Argonaut Morning Note

The Nasdaq Composite endured another session of declines intraday as technology stocks resumed their slide. The moves put the index, which has outperformed the S&P 500 and Dow Jones Industrial Average this year, on course to end lower for the fourth time in five trading days. U.S. stocks have hit a string of records this year, thanks in part to stronger-than-expected corporate earnings.

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15/06/2017 Argonaut Morning Note

U.S. stocks slipped Wednesday in choppy trading after the Federal Reserve decided to raise interest rates. The Fed's move was widely expected by analysts and investors, but many are sceptical that the U.S. central bank will act aggressively going forward after a recent patch of soft U.S. economic data. The Dow Jones Industrial Average finished 0.2% higher at 21,375 whilst the S&P 500 fell 0.1%. Fed officials lowered their projections for inflation this year, though they still expect annual price gains to reach their 2% target by the end of 2018. The Fed said in a statement it was "monitoring inflation developments closely." Investors sold technology shares with the Nasdaq losing ground and tech stocks in the S&P 500 falling 0.8%. A selloff in tech shares buffeted major indexes Friday and Monday, before the sector recovered slightly Tuesday. Energy stocks fell 2% in the S&P 500 as U.S. crude prices fell 3.7% to $44.73 a barrel amid signs of a persistent global oil glut. The U.S. gold price also dropped overnight, shedding 0.5% to 1,260.10 US$/oz.

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13/06/2017 Argonaut Morning Note

Shares of technology companies fell around the world Monday, extending Friday's steep declines in the U.S. giants that had been driving this year's stock-market gains. The tech-heavy Nasdaq Composite fell 0.8%. The S&P 500 lost 0.1% and the Dow Jones Industrial Average fell 36 points, or 0.2%, to 21,236. Several large tech companies have led this year's rally, prompting concerns that major indexes' gains have been overly concentrated in a handful of stocks. Tech shares in the S&P 500 have climbed roughly 17% this year, while the Nasdaq has risen 15%. Analysts have cited a series of critical research notes of big-name players like Apple as the trigger for the selloff, but after the run-up, the sector "was ripe for a pullback of some sort," said Mark Luschini, chief investment strategist for Janney. Energy shares in the S&P 500 rose 0.7% on Monday, buoyed by rising oil prices. U.S. crude futures gained 0.9% to $46.24 a barrel, after falling 3.8% last week. The U.S. gold price fell slightly over night, dropping 0.1% to 1,265.50 US$/oz.

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09/06/2017 Argonaut Morning Note

The S&P 500 edged lower intraday as losses in consumer stocks offset gains in the shares of financial companies. Stocks traded in a relatively narrow range as former FBI Director James Comey testified before Congress and investors awaited the results of a hotly contested U.K. election. Major indexes have drifted higher in recent weeks with few large swings, something investors and analysts have attributed to strength in corporate earnings. The Dow Jones Industrial Average finished 9 points up to 21155. The S&P 500 finished largely unchanged at 2,434. Financial stocks rose, adding 1.1% in the S&P 500. Dow components J.P. Morgan Chase and Goldman Sachs Group gained about 1% each, giving the blue-chip index a boost. The U.S. gold price dropped for the second straight day, falling 0.7% to 1,277.60 US$/oz.

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08/06/2017 Argonaut Morning Note

Declines in energy stocks pressured major U.S. indexes, while financial shares gained. Shares of energy companies in the S&P 500 fell 1.6% as the price of oil slumped. U.S. crude fell after the U.S. Energy Information Administration reported that oil stockpiles rose for the first time in nine weeks. Gasoline inventories also rose, raising fears U.S. drivers won't use up the glut of crude and fuel over the summer. Financial stocks rose 0.7%. Stocks had slipped in recent sessions as investors waited for a series of scheduled events that have the potential to create big moves in global markets. Along with a policy decision from the European Central Bank Thursday, former U.S. Federal Bureau of Investigation director James Comey is expected to testify in Washington. Falling for the day was the U.S. gold price which shed 0.5% to finish at 1,286.80 US$/oz.

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