Morning Notes

14/05/2018 Argonaut Morning Note

Bets on inflation remaining muted helped push investors back into the stock market, driving the S&P 500 and Dow Jones Industrial Average to their biggest one-week gains since March.  Stocks have rebounded in recent sessions, with the Dow rising seven straight sessions through Friday - its longest such streak since November. And shares of technology companies that came under pressure earlier in the year extended their recovery, with names like Google parent Alphabet, Facebook and PayPal all up more than 4% apiece for the week. The Dow industrials rose 92 points, or 0.4%, to 24831, advancing 2.3% for the week. The S&P 500 added 5 points, or 0.2%, to 2728 and posted a 2.4% weekly gain, while the Nasdaq Composite edged down 2.09 points, or less than 0.1%, to 7402.88 for a 2.7% weekly advance. Nvidia, which posted better-than-expected quarterly earnings Thursday, fell $5.60, or 2.2%, to $254.53, with some analysts attributing the decline to investors taking profits following a recent run-up in the stock.  Despite the day's moves, Nvidia jumped 6.5% for the week and remained up 32% for the year. The US gold price was up 0.4% to 1317.90 US$/oz

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11/05/2018 Argonaut Morning Note

U.S. stocks rose intraday, as fears of runaway inflation abated to help send the Dow Jones Industrial Average higher for a sixth consecutive session. The Dow rose 197 points to near its longest winning streak since February, as investors got another sign that inflation may be rising, but not so rapidly that the Federal Reserve would have to take aggressive actions to keep the economy from overheating. New Labor Department data indicated U.S. consumer prices rose less than expected in April and followed last Friday's unemployment report that showed wage growth remains sluggish, alleviating some recent worries and removing a major hurdle for the Dow and other indexes to move higher. The volatility that rocked the stock market this year and sent major indexes into correction territory has gradually faded, giving some money managers hope that stocks are gaining some upward momentum. A key measure of expected market swings, the Cboe Volatility Index, or VIX, has fallen six straight trading sessions, settling near levels that were last seen in early January, when stocks were in so-called melt-up mode following the passage of Republicans' tax overhaul. The U.S gold price rose 0.7% to 1,321.2 US$/Oz.

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10/05/2018 Argonaut Morning Note

The Dow Jones Industrial Average was on track to extend its longest winning streak in almost three months Wednesday, lifted by gains in energy shares as investors continued to weigh President Donald Trump's decision to exit from the Iran nuclear deal. Although the news was widely anticipated by investors, oil prices and shares of energy companies climbed in response, as many investors expect fresh sanctions to hurt Iranian crude exports and reduce global supply. While that could mean higher input costs for many companies, some investors see oil's recent rally as a bullish sign for the broader market. The Dow industrials climbed 0.7% in a fifth straight session of gains. The S&P 500 added 1%, with nine of its 11 sectors rising, while the Nasdaq Composite also advanced 1%. The S&P 500's energy sector extended its recent climb, surging as U.S. crude oil rose 3% to $71.14 a barrel, around its highest level since November 2014. The U.S gold price slipped 0.2% to record 1,312.2 US$/Oz.

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09/05/2018 Argonaut Morning Notes

U.S. stocks and oil prices held on to modest losses intraday as President Donald Trump said the U.S. will withdraw from the Iran nuclear deal. The president had long criticized the agreement, calling it "the worst deal ever," and his decision was largely expected by investors. Oil prices had run higher in recent weeks on expectations that a withdrawal would hurt Iranian exports and further reduce global supply. The Dow Jones Industrial Average slipped 3 points, to 24360, on track to break a three-day winning streak. The S&P 500 dropped 1 point, and Nasdaq Composite fell 0.4%. The U.S gold price remained largely constant, only gaining 60c to record 1,314.2 US$/Oz.

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08/05/2018 Argonaut Morning Note

Major U.S. stock indexes climbed Monday, as shares of energy companies surged after oil prices broke above $70 a barrel for the first time since 2014. The Dow Jones Industrial Average advanced 0.4%. The S&P 500 rose 0.3%, flipping back into positive territory for the year, and the Nasdaq Composite added roughly 1%. Oil prices have risen more than 10% in the past month as U.S. President Donald Trump has indicated that the country will likely withdraw from a 2015 international agreement with Iran. That has helped spur a rally in energy stocks, which climbed 1.6% in the S&P 500 on Monday. The stock market's jump higher comes after Friday's jobs report showed that unemployment in the U.S. fell in April to one of the lowest levels of the post-World War II era. Higher oil prices gave the stock market a lift Monday but could push measures of inflation higher, stoking turbulence in markets, analysts have said. The U.S gold price lost 0.1% overnight to record 1,313.6 US$/Oz.

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