Morning Notes

28/09/2015 Argonaut Morning Note

U.S. stocks finished mixed Friday, curbing earlier gains amid a renewed selloff in the biotechnology sector. The Dow rose 113 points, or 0.7%, to 16315, pulling back from a gain of 264 points earlier in the session. An 8.9% rally in Nike helped keep the Dow in positive territory. The world's biggest sportswear maker posted stronger quarterly profits. But the S&P 500 fell 0.1% and the biotech-heavy Nasdaq Composite lost 1%. A rout in biotech shares weighed down broad-market indexes. The Nasdaq Biotechnology Index lost 5.1%, capping a tumultuous week for the sector. The selloff reverses the gains logged early Friday that followed a speech by Federal Reserve Chairwoman Janet Yellen, who laid out a case for raising interest rates this year, reassuring investors that the central bank has confidence in the health of the U.S. economy. Ms. Yellen's comments, delivered late Thursday, were effectively a warning that last week's decision to keep rates near zero wasn't a shift toward an interminable delay in raising rates.

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25/09/2015 Argonaut Morning Note

U.S. stocks extended their selloff into a third straight session, dragged down by declines among big industrial firms and auto makers. During a speech on Thursday in Amherst, Massachusetts, US FED Chairman Janet Yellen’s stated, “most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter. But if the economy surprises us, our judgments about appropriate monetary policy will change”. Shares of Caterpillar Inc. posted the biggest decline in the Dow after the maker of heavy equipment cut its revenue outlook and announced up to 10,000 job cuts as part of a cost-cutting plan. The Dow fell 0.5% to 16,201 and the S&P 500 dropped 0.3% to 1,932.

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24/09/2015 Argonaut Morning Note

U.S. stocks bounced around, putting the Dow industrials on track for their fourth loss in five sessions. The Fed last week refrained from raising short-term interest rates, which would have marked its first increase in nearly a decade, amid concerns about weak economic growth abroad. China stoked global growth concerns when it unexpectedly devalued its currency last month. A slowdown in the global economy bodes poorly for corporate profits at big, multinational companies and future gains in those stocks.

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23/09/2015 Argonaut Morning Note

Global stocks fell sharply as worries about the pace of global growth and uncertainty about the Federal Reserve's plans to raise interest rates continued to fuel big swings in markets. The Fed's recent decision to keep interest rates unchanged sparked renewed fears over sluggish global growth and left investors second-guessing when the central bank will raise rates. Investors are awaiting new data on the health of the Chinese economy, including the Caixin manufacturing activity reading for September, scheduled for release on Wednesday.

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22/09/2015 Argonaut Morning Note

U.S. stocks pared earlier gains in afternoon trading, dragged down by biotechnology stocks. Other than biotech stocks in the U.S., markets generally steadied after the Fed's decision last week to keep interest rates at record lows sparked a global selloff amid fears about the fragile state of the global economy. Although rock-bottom rates have helped fuel years of rising stocks since the financial crisis, the Fed's reluctance to lift borrowing costs was seen as a reminder that growth in the U.S. and elsewhere remains vulnerable to a slowdown in China. The Dow added 126 points, or 0.8%, to 16,510 while the S&P 500 gained 9 points, or 0.5%, to 1,967.

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