Morning Notes

09/11/2017 Argonaut Morning Note

Market Update & Important Indicators
The S&P 500 headed toward another all-time high Wednesday, as investors parsed the latest batch of corporate earnings. Broad-based profit growth has helped propel major indexes to fresh records. Many investors say solid corporate earnings and a U.S. economy that is picking up steam should continue supporting major indexes moving forward. The S&P 500 rose 0.1% after snapping a five-session winning streak Tuesday. The Dow Jones Industrial Average advanced less than 0.1% and the Nasdaq Composite was recently up 0.3%, after swinging between small gains and losses earlier in the session. More than 85% of S&P 500 companies have reported third-quarter results as of Wednesday morning, with roughly three-quarters of them beating earnings expectations, according to FactSet. Per-share earnings at the firms have grown about 6.4% in the third quarter from the year-earlier period. Apple hit another milestone Wednesday, becoming the first public U.S. company to ever reach a market value of $900 billion. The largest company in the S&P 500 reported its best quarterly growth in two years last week. Shares rose 0.7% to an all-time high Wednesday. The U.S. gold price traded higher overnight, firming 0.6% to finish at 1,280.80 US$/oz.

European stocks declined Wednesday, enduring a second straight loss, as Credit Agricole was a decliner among bank shares. The Stoxx Europe 600 edged down by less than 0.1% to end at 394.45, pulling back further from its 52-week closing high made last week. On Tuesday, the benchmark fell 0.5%. In Wednesday's trade, Germany's DAX 30 index was up less than 0.1% to end at 13,382.42, while France's CAC 40 shed 0.2% to 5,471.43. The U.K.'s FTSE 100 closed up 0.2% at 7,529.72, creeping back toward Monday's record close. Spain's IBEX 35 was down less than 0.1% at 10,228.70.

Asian stocks were little changed after many indexes across the region notched multiyear highs Tuesday. Japan's Nikkei Stock Average edged down 0.1% from a near-26-year record close. Shanghai stocks inched up 0.2% despite lackluster October trade data, with China's export and import volumes contracting from September. Hong Kong's Hang Seng Index shed 0.3%.

Australian stocks rebounded from modest morning declines to finish slightly higher and notch fresh 10-year highs. The S&P/ASX 200 rose 2 points to 6016.3. As mining stocks pulled back some after their latest run higher as metals prices themselves paused, the country's biggest bank carried the weight today. CBA rose 2.7% following its F1Q report, though the other members of the Big 4 finished little changed.

The London Metal Exchange’s 3-month copper contract traded higher overnight, gaining 0.4% to finish at $6,855/t. The other base metals finished mixed. Aluminium prices lost 1.1% to close at 2,090/t, whilst Zinc prices bounced 1.1% to 3,237/t. Lead prices rose 0.5% to 2,502/t, while Nickel prices rebounded 0.4% to close at 12,651/t. Tin prices were lower overnight, slipping 0.3% to close at 19,560/t.

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Gold Road Resources Ltd (GOR), Apollo Consolidated Ltd (AOP), De Grey Mining Ltd (DEG), Triton Minerals Ltd (TON), Evolution Mining Ltd (EVN), Silver Mines Ltd (SVL), NTM Gold Ltd (NTM), Gascoyne Resources Ltd (GCY), Southern Cross Electrical Ltd (SXE), MOD Resources Ltd (MOD), Meteoric Resources NL (MEI), Emmerson Resources Ltd (ERM), Gage Roads Brewing Ltd (GRB), Otto Energy Ltd (OEL), Whitebark Energy Ltd (WBE)

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