Morning Notes

15/05/2015 Argonaut Morning Note

The S&P 500 closed at an all-time high, halting a three-session slide. The index climbed 23 points, or 1.1%, to 2,121. The Dow also posted more than a 1% gain, closing 192 points higher at 18,252. A number of factors helped equities. Wholesale prices in the U.S. unexpectedly declined and retail sales are lacklustre (which may give the Federal Reserve pause in raising rates), bond markets have stabilised, and the weaker U.S. dollar will help U.S. based multinationals with foreign earnings.

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13/05/2015 Argonaut Morning Note

U.S. stocks pared steep losses to trade little changed Tuesday following a selloff in European equities and government bonds. The Dow had fallen by as much as 180 points in early trading, but subsequently pared losses. The moves in U.S. stocks followed a selloff in European markets. The selloff was exacerbated by short-term institutional investors looking to exit positions that bet European bond prices would go higher.

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12/05/2015 Argonaut Morning Note

U.S. stocks slipped Monday, pulling back one session after the Dow posted its biggest one-day gain in more than three months. Traders said market activity was relatively subdued following Friday's surge, which saw the Dow soaring 267 points, or 1.5%, after the government's employment report for April indicated the economy was pulling out of its first-quarter slump.

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11/05/2015 Argonaut Morning Note

Wall Street have stocks surged after the Labour Department reported the US economy added a solid 223,000 jobs in April and unemployment fell to a seven-year low of 5.4 per cent. At the closing bell on Friday, the Dow Jones Industrial Average had powered 267.05 points (1.49 per cent) higher to 18,191.11. The broad-based S&P 500 jumped 28.10 (1.35 per cent) to 2,116.10, while the tech-rich Nasdaq Composite Index gained 58.00 (1.17 per cent) at 5,003.55. The April labour data marked a big improvement from March, when the US added just 85,000 jobs. At the same time the US labour market showed some signs of weakness, with wages barely growing and underemployment still elevated. Many economists said the jobs data suggested the Fed likely would wait until September or later in its plan to lift the near-zero federal funds rate this year. The equity gains were broad-based, with all 30 members of the Dow finishing in the green.

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08/05/2015 Argonaut Morning Note

U.S. stocks rose Thursday, a day after they fell in the wake of the Federal Reserve chief's warning over high equity valuations. Stocks bounced around the flat line in early trading before drifting higher through the afternoon. Traders said many investors were sitting on the sidelines, looking ahead to Friday's employment report. Investors are waiting to see if the weak first quarter extended past winter. The Dow rose 0.5% to 17,924 and the S&P rose 0.4% to 2,088.

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