Morning Notes

03/05/2018

The Dow Jones Industrial Average slipped 0.7%. The S&P 500 declined 0.7%, and the Nasdaq Composite added 0.1%. Stocks have also come under pressure as investors debate whether profits might be peaking early in the year. IPhone maker Apple announced the largest stock buyback program in corporate history following a strong quarter. Shares added 4.9%. Mastercard was one of the S&P 500's best performers, rising 3.1%. The credit-card firm posted higher-than-expected sales and profits as the company continued to benefit from increased spending driven by higher consumer confidence. Snap shares tumbled 22% after the social-media firm said quarterly revenue rose less than expected as efforts to wrest a larger share of advertisers' budgets were impeded by Facebook and Alphabet's Google.  A recent bout of turbulence for the consumer-staples sector, which is down 14% this year, continued. The S&P 500 grouping dropped 1.8%, with Molson Coors and Estée Lauder among the biggest laggards following earnings. The U.S. gold price gained 0.1% overnight to record 1304.60 US$/Oz.

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02/05/2018 Argonaut Morning Note

The Dow Jones Industrial Average slumped intraday, but pared some of its earlier losses, as investors weighed global trade negotiations, central bank moves and the latest round of corporate earnings results. The blue-chip index fell 0.3%, to 24,099, after dropping as much as 355 points earlier in the session. The S&P 500 added 0.3%, and the technology-heavy Nasdaq Composite rose 0.6%. The major indexes eked out small gains in April on the back of strong corporate earnings after being rocked by a bout of volatility earlier in the year. First-quarter earnings have largely topped expectations, but investors haven't rewarded beats at the same pace as in recent quarters. The U.S. Gold price fell by 0.86% overnight to finish at 1,303.60 US$/Oz.

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01/05/2018 Argonaut Morning Note

The Dow industrials declined 0.2% in recent trading, cutting its monthly gain to 0.5%. The S&P 500, meanwhile, fell 0.8%, as the broad index tested its 50-day moving average before turning slightly lower. The Nasdaq Composite also was down, falling 0.6%.   The S&P 500 is up 0.6% in April, while the Nasdaq Composite has added 0.3%. Arconic was the biggest drag on the S&P 500, with shares falling 19% after the company lowered its 2018 guidance, saying it now expects higher revenue but lower per-share earnings. That pulled the broader industrial segment of the S&P 500 down 1.1%. Health-care companies in the S&P 500 fell 1.2%. Shares of Marathon Petroleum fell 7.5% after the company announced a $23 billion deal to buy rival Andeavor to create the largest American oil refiner. Andeavor shares, however, rose 13%. Shares of telecommunications companies also struggled after T-Mobile US announced a $26 billion deal to buy Sprint over the weekend. T-Mobile shares fell 6.6%, while Sprint tumbled 14%. Verizon Communications, another big S&P 500 decliner, shed 3.5%. 

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30/04/2018 Argonaut Morning Note

U.S. stocks stalled Friday, sending major indexes to weekly losses following one of the busiest periods of the first-quarter corporate earnings season. Stocks struggled for traction at the start of the week, pressured by selling in government bonds that pushed the yield on the 10-year U.S. Treasury note above 3% for the first time since January 2014. A string of mixed earnings reports weighed on the stock market. The Dow Jones Industrial Average fell 11 points, or less than 0.1%, to 24,311 on Friday. The S&P 500 edged up 3 points, or 0.1%, to 2,670, and the Nasdaq Composite added 1.12 point, or less than 0.1%, to 7,119.80. All three indexes posted weekly losses, with the Dow industrials losing 0.6%, the S&P 500 shaving off less than 0.1% and the Nasdaq falling 0.4%. With more than half of S&P 500 firms having posted first-quarter results, the broad index is on track to post year-over-year earnings growth of 23% for the latest quarter, according to FactSet estimates. That has helped reassure investors that corporate profits remain on solid footing. Although many warn that stock gains could stall, especially if bond yields continue their recent climb. The US gold price was up overnight by 0.5% to finish at 1,322.60 US$/oz.

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27/04/2018 Argonaut Morning Note

U.S. stocks climbed Thursday, led by the technology sector, after a strong round of corporate earnings reports. The tech-heavy Nasdaq Composite was up 1.8% in the last hour of trading, and the S&P 500 added 1.0%. The Dow Jones Industrial Average rose 1.0%. Technology stocks led the way after Facebook reported a 63% increase in earnings and its shares jumped 10%. The jump in this stock helped pull the S&P 500's technology sector up 2.4% after a six-session losing streak. A recent lurch higher in 10-year Treasury yields has spurred swings in the stock market in recent months, but some analysts still thinks yields are far from being a real threat to strong equity returns. The US gold price fell overnight by 0.5% to finish at 1,316.30 US$/oz.

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