Morning Notes

20/07/2015 Argonaut Morning Note

The Nasdaq has closed at a record high for the second straight session, jumping more than 0.9 per cent following a surge in Google shares. The tech-rich Nasdaq Composite Index jumped 46.96 points (0.91 per cent) to 5,210.14 on Friday. The Dow Jones Industrial Average dropped 33.80 (0.19 per cent) to 18,086.45, while the broad-based S&P 500 added 2.35 (0.11 per cent) at 2,126.64. Google powered 16.1 per cent higher after reporting that second-quarter net income climbed two per cent to $US3.4 billion on an 11 per cent rise in revenue to $US17.7 billion, thanks in part to increases in mobile advertising. The tech giant also gave a bullish outlook on its YouTube business and hinted that moves to return cash to shareholders were in the horizon.

read more...

17/07/2015 Argonaut Morning Note

U.S. stocks climbed as Greece's Parliament passed austerity measures needed to secure a fresh bailout and Draghi pledged further bank funding. Also buoying stocks were a stream of stronger-than-expected second-quarter earnings reports from large firms, including Citigroup Inc. and Intel Corp. The Dow climbed 70 points, or 0.4%, to 18,120 and the S&P 500 gained 0.8% to 2,124. Investors have been bracing for a lacklustre earnings season, curbed by the firm dollar, low oil prices and signs of uneven economic growth. Analysts predict profits for companies in the S&P 500 fell 3.6% in the second quarter.

read more...

16/07/2015 Argonaut Morning Note

U.S. stocks turned slightly lower Wednesday afternoon as investors eyed developments in Greece ahead of a parliamentary vote on a proposed bailout. Greece and its creditors reached a bailout deal Monday, but the fresh aid is contingent on the cash-strapped country implementing deep austerity and economic overhauls. The Greek Parliament is expected to approve the measures on Wednesday. Financial stocks rose the most in the S&P 500. Strong earnings from Bank of America Corp. on Wednesday and J.P. Morgan Chase & Co. on Tuesday helped buoy the sector. Bank stocks also stand to benefit from higher interest rates as they can charge more on loans. Back in the U.S., investors largely brushed off Federal Reserve Chairwoman Janet Yellen's remarks to Congress. She reiterated the central bank was on a path to raise short-term rates this year as the domestic economy improves even amid global headwinds.

read more...

15/07/2015 Argonaut Morning Note

U.S. stocks rose Tuesday, extending a rally that propelled the S&P 500 to its biggest three-day advance of the year. After several weeks of world news dominating trading in U.S. markets, corporate earnings started to play a slightly bigger role on Tuesday. Earnings for S&P 500 companies are forecast to slip 4.5% in the second quarter, according to FactSet. That would mark the first fall since the third quarter of 2012. Investors Tuesday also digested retail sales, which unexpectedly fell 0.3% in June from the prior month, the Commerce Department said.

read more...

14/07/2015 Argonaut Morning Note

U.S. stocks advanced Monday after eurozone leaders said they reached a deal to provide further bailout aid to Greece. The Dow Jones climbed 217 points, or 1.2%, to 17,978, while the S&P 500 gained 23 points, or 1.1%, to 2,100. Stocks bounced after eurozone leaders said they would give Greece up to EUR86 billion (US$96 billion) in fresh aid as long as the government of Prime Minister Alexis Tsipras implements a round of severe austerity measures in the coming days. The endless stream of headlines about Greece's financial situation also came during a slow period for U.S. corporate news, which meant there was little else for U.S. investors to focus on. That should change in the coming days. The pace of second-quarter earnings releases will pick up this week, with reports from J.P. Morgan Chase & Co., Bank of AmericaCorp. and Intel Corp.

read more...