Morning Notes

07/05/2018 Argonaut Morning Note

U.S. stocks rebounded Friday, shaving away much of the S&P 500 and Dow Jones Industrial Average's midweek losses but leaving both indexes down for a second consecutive week. Friday's moves allowed the stock market to end on a high note following a rocky stretch that included lukewarm earnings reports and economic data. Recent reports have pointed to a slowdown in growth across much of the U.S. economy in April, smaller-than-expected job creation and still-sluggish wage growth, which has renewed questions among investors about whether the economy's momentum is slowing. Still, many investors say they remain relatively optimistic about stocks, citing broadly strong earnings results, as well as signs that central banks will stick to a slow and steady course of interest-rate increases. The Dow Jones Industrial Average rose 332 points, or 1.4%, to 24263, erasing declines after falling as many as 151 points earlier in the session. The S&P 500 added 34 points, or 1.3%, to 2663, while the Nasdaq Composite climbed 121.47 points, or 1.7%, to 7209.62, lifted by a rally in Apple shares. The U.S. gold price gained 0.3% overnight to record 1315.0 US$/Oz.

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04/05/2018 Argonaut Morning Note

The Dow Jones Industrial Average turned higher intraday after plunging nearly 400 points earlier in the session, a sign of the stock market's resilience despite signs of weakening economic data, rising interest rates and lackluster corporate earnings reports. The blue-chip index has been range bound, trading in a narrow span of about 700 points over the past two months. But it has struggled to gain traction since losing more than 10% of its value over nine sessions in January and February. The Dow industrials have declined nine of the past 11 sessions entering the day and remain roughly 10% below their last high on Jan. 26. Shares took another leg lower after data showed that the pace of growth across much of the U.S. economy slowed in April.  The Dow was recently up recording 23930, after earlier sliding as much as 394 points. The S&P 500 declined 0.2%, putting it on pace for a second straight session of losses, while the Nasdaq Composite fell less than 0.1%.

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03/05/2018

The Dow Jones Industrial Average slipped 0.7%. The S&P 500 declined 0.7%, and the Nasdaq Composite added 0.1%. Stocks have also come under pressure as investors debate whether profits might be peaking early in the year. IPhone maker Apple announced the largest stock buyback program in corporate history following a strong quarter. Shares added 4.9%. Mastercard was one of the S&P 500's best performers, rising 3.1%. The credit-card firm posted higher-than-expected sales and profits as the company continued to benefit from increased spending driven by higher consumer confidence. Snap shares tumbled 22% after the social-media firm said quarterly revenue rose less than expected as efforts to wrest a larger share of advertisers' budgets were impeded by Facebook and Alphabet's Google.  A recent bout of turbulence for the consumer-staples sector, which is down 14% this year, continued. The S&P 500 grouping dropped 1.8%, with Molson Coors and Estée Lauder among the biggest laggards following earnings. The U.S. gold price gained 0.1% overnight to record 1304.60 US$/Oz.

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02/05/2018 Argonaut Morning Note

The Dow Jones Industrial Average slumped intraday, but pared some of its earlier losses, as investors weighed global trade negotiations, central bank moves and the latest round of corporate earnings results. The blue-chip index fell 0.3%, to 24,099, after dropping as much as 355 points earlier in the session. The S&P 500 added 0.3%, and the technology-heavy Nasdaq Composite rose 0.6%. The major indexes eked out small gains in April on the back of strong corporate earnings after being rocked by a bout of volatility earlier in the year. First-quarter earnings have largely topped expectations, but investors haven't rewarded beats at the same pace as in recent quarters. The U.S. Gold price fell by 0.86% overnight to finish at 1,303.60 US$/Oz.

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01/05/2018 Argonaut Morning Note

The Dow industrials declined 0.2% in recent trading, cutting its monthly gain to 0.5%. The S&P 500, meanwhile, fell 0.8%, as the broad index tested its 50-day moving average before turning slightly lower. The Nasdaq Composite also was down, falling 0.6%.   The S&P 500 is up 0.6% in April, while the Nasdaq Composite has added 0.3%. Arconic was the biggest drag on the S&P 500, with shares falling 19% after the company lowered its 2018 guidance, saying it now expects higher revenue but lower per-share earnings. That pulled the broader industrial segment of the S&P 500 down 1.1%. Health-care companies in the S&P 500 fell 1.2%. Shares of Marathon Petroleum fell 7.5% after the company announced a $23 billion deal to buy rival Andeavor to create the largest American oil refiner. Andeavor shares, however, rose 13%. Shares of telecommunications companies also struggled after T-Mobile US announced a $26 billion deal to buy Sprint over the weekend. T-Mobile shares fell 6.6%, while Sprint tumbled 14%. Verizon Communications, another big S&P 500 decliner, shed 3.5%. 

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