Morning Notes

13/08/2015 Argonaut Morning Note

U.S. stocks staged an afternoon rally to recover from a second day of losses following China's currency devaluation, though global indexes were broadly lower and investors remained unsettled over the implications of the sudden shift in the second-largest world economy. While growth concerns in China have been present for months, they were brought to the forefront Tuesday after China devalued its tightly controlled currency, causing its biggest one-day loss in two decades. China's devaluation might also complicate the Federal Reserve's decision about when to start raising interest rates for the first time in nearly a decade. That uncertainty pushed the U.S. dollar lower versus the euro and the yen.

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12/08/2015 Argonaut Morning Note

China's devaluation of its currency jolted U.S. stocks Tuesday. The Dow Jones Industrial Average erased the previous session's gains. The Nasdaq Composite and S&P 500 also fell. Shares of miner Freeport McMoRan lost 13.3% to $10.10, while Alcoa shares dropped 6.2%, trading at $9.46. Caterpillar fell 3.2% to $77.61. Shares of Apple dropped 5.2% to $113.44. China is a major market for Apple products. Shares of companies that export to China, including luxury-goods firms, car makers and mining companies, came under the most intense pressure.

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11/08/2015 Argonaut Morning Note

Deal-making in the industrials sector fueled a rally in U.S. stocks, helping the Dow recover from steep losses last week. The Dow climbed 242 points, or 1.4%, to 17,615, while the S&P 500 gained 1.3% to 2,104. Berkshire Hathaway Inc. said it would buy Precision Castparts Corp. for about $32 billion, sending shares of the industrial company soaring 19%, making it the biggest gainer in the S&P 500. Meanwhile, disappointing economic data in China provided fuel for gains in stocks across the globe.

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10/08/2015 Argonaut Morning Note

Wall Street stocks have dropped after a solid US July jobs report lifted expectations the Federal Reserve will soon raise interest rates. The US economy added 215,000 jobs in July with unemployment holding steady at a seven-year low rate of 5.3 per cent. The report brought the average monthly jobs gains to 235,000 over the past three months, heightening expectations the Fed could raise its near-zero federal funds rate as early as next month.

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07/08/2015 Argonaut Morning Note

Stocks slumped on Thursday in a selloff led by shares of media companies, which have reported a flurry of disappointing earnings amid concerns about the shift away from traditional television. A 12% decline in Viacom Inc. dragged down the Nasdaq Composite Index, which was 1.5% lower at 5062. The Dow fell 0.7% to 17,420 and S&P 500 dropped 0.8% to 2,084.

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