Morning Notes

24/05/2017 Argonaut Morning Note

Financial stocks lifted the S&P 500 intraday, putting it on course for a fourth consecutive session of gains. U.S. stocks have been resilient in recent months to investors' concerns that political turmoil in Washington could push back the Trump administration's plans for policy changes like tax cuts and fiscal stimulus. A strong corporate earnings season and a largely stable economy are helping major indexes stay buoyant, investors and analysts say. The Dow Jones Industrial Average rose 40 points, or 0.2%, to 20934 intraday. The S&P 500 added 0.2% and the Nasdaq Composite edged down less than 0.1%. Financial stocks in the S&P 500 rose with yields, ranking among the best-performing sectors in the broad index for the day. The U.S. gold price fell for the day, dropping 0.8% to 1,250.70 US$/oz.

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23/05/2017 Argonaut Morning Note

Gains in technology and industrial shares lifted U.S. stocks Monday, putting the S&P 500 on track for a third consecutive session of gains. Growth in corporate earnings and signs of economic strength have helped mitigate investors' recent concerns about the Trump administration's woes in recent sessions, some analysts said. That helped many view last week's drop as a buying opportunity. Of the 95% of S&P 500 companies that have reported results so far for the first quarter, 75% have beat earnings per share estimates, according to FactSet. Technology stocks in the S&P 500 rallied 0.9%. The sector suffered its worst day since Brexit during last week's selloff, which was spurred by fears the administration would fail to deliver corporate-friendly policies. News that Saudi Arabia and the U.S. were expected to agree to business deals and potential investments valued at $300 billion boosted a range of companies. The U.S. gold price continued its upward trend rising 0.4% to finish at 1,260.40 US$/oz.

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22/05/2017 Argonaut Morning Note

U.S. stocks rebounded Friday, gaining back much of their midweek tumble. The calm climb in recent sessions contrasted sharply with earlier in the week, when the S&P 500 posted its steepest one-day drop since September. Wednesday's selloff was sparked by concerns about the latest political setbacks and controversies to hit the Trump administration

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18/05/2017 Argonaut Morning Note

Turbulence in Washington jolted markets out of an extended period of calm Wednesday. Stocks slid as investors pulled back from bets on the swift passage of President Donald Trump's agenda. In one of the clearest signs of waning investor confidence, a closely watched measure of the dollar's value was on track to give back its postelection gains. Stocks fell around the world, with major U.S. stock indexes heading for their biggest declines in months. U.S. stocks remain close to record highs and few investors said they expect a major pullback, but many said they were increasingly worried about the implementation of proposed policies such as tax cuts, deregulation and infrastructure spending following a series of developments in Washington. Some traders said Wednesday's selling was sparked by reports that President Donald Trump had allegedly asked then-FBI Director James Comey to back off the investigation of former national security adviser Michael Flynn. Wednesday's moves upended weeks of stability. Among market sectors, bank stocks were hit hardest: Financials in the S&P 500 were down about 2.8%. On the contrary, the U.S. gold price rose strongly overnight, rising 2.0% to 1,260.90 US$/oz.

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17/05/2017 Argonaut Morning Note

The Nasdaq Composite headed toward a fresh record close intraday, as shares of technology companies climbed in an otherwise downbeat session. The tech-heavy index has outperformed both the S&P 500 and the Dow Jones Industrial Average in 2017 as investors have piled into the shares of companies thought to benefit from U.S. economic growth. That's left the Nasdaq up about 14% this year, while the S&P 500 has gained 7.2% and the Dow industrials have risen 6.2%. Still, some investors and analysts caution that technology stocks, which have risen double-digit percentages in the S&P 500 in 2017, may be vulnerable to a pullback. Global fund managers say the Nasdaq has become the most crowded trade, Bank of America Merrill Lynch found in a survey. The Nasdaq Composite rose 0.3%, on course for its 33rd record close of the year. The Dow Jones Industrial Average fell 1 point, or less than 0.1%, to 20982 and the S&P 500 lost less than 0.1%. The U.S. gold price rose again for the day, finishing 0.5% higher at 1,236.70 US$/oz.

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