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Stock Market News For Apr 17, 2018

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U.S. stock markets surged in the first trading day of the week driven by robust first-quarter 2018 earnings results and easing of geopolitical tensions at least for the time being. Monday’s positive market movements were broad-based as all the major indexes closed in the green.

The Dow Jones Industrial Average (DJI) closed at 24,573.04, gaining 0.9% or 212.9 points. The S&P 500 Index (INX) increased 0.8% to close at 2,677.84. The Nasdaq Composite Index (IXIC) closed at 7,156.28, increasing 0.7%. A total of 5.74 billion shares were traded on Monday, higher than the last 20-session average of 7.03 billion shares. Advancers outnumbered decliners on the NYSE by 2.7-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.82 to-1 ratio. The CBOE VIX declined 4.9% and closed at 16.56.

How Did the Benchmarks Perform?

The Dow gained 0.9% with 25 stocks of the 30-stock index closing in the green while five stocks traded in the red. Notably, the blue-chip index closed above its 50-day moving average. Dow breached this psychological barrier for the first time since Mar 13 and closed above it for the first time since Mar 9 indicating positive investor sentiment.

S&P 500 increased 0.8% led by 1.4% gain of the Utilities Select Sector SPDR (XLU) and 1.3% increase of the Materials Select Sector SPDR (XLB). Each of the 11 sectors of the benchmark index ended in positive territory with five of them gaining more than 1%. Notably, S&P 500 returned to positive territory for the year and Monday’s closing was its highest since Mar 22. Moreover, the benchmark index posted 11 new 52-week highs and no new lows.

The tech-heavy Nasdaq Composite also gained 0.7% driven by a sharp increase in technology and telecom stocks. The index recorded 68 new 52-week highs and 36 new 52-week lows.

Strong Earnings Momentum

First quarter earnings results have been showing strong momentum so far. Investors have pinned high hopes on first-quarter 2018 earnings. Total earnings of the S&P 500 index is expected to be up 16.6% from the same period last year backed by 7.5% year-over-year growth in revenues. A big driver of these positive revisions is obviously the direct impact of the tax cuts. (Read More: Why is the Market Unimpressed with Bank Earnings?)

Major companies that reported earnings results on Monday include Bank of America Corp. (BAC - Free Report) and The Charles Schwab Corp. (SCHW - Free Report) . Each of them reported better-than-expected earnings results and consequently, stock price increased by 0.4% and 4%, respectively.

Bank of America’s first-quarter 2018 earnings of $0.62 per share outpaced the Zacks Consensus Estimate of $0.59. Net revenues as reported were $23.1 billion, which topped the Zacks Consensus Estimate of $22.9 billion. (Read More: BofA Tops Q1 Earnings on Higher Rates, Equity Trading).

The Charles Schwab first-quarter 2018 earnings of $0.55 per share outpaced the Zacks Consensus Estimate of $0.54. Net revenues as reported were $2.40 billion, which topped the Zacks Consensus Estimate of $2.37 billion. (Read More: Schwab Beats on Q1 Earnings and Revenues Estimates)

Geopolitical Tension Eases

Geopolitical tension arising out of a possible air strike by the United States in Syria, which tumbled the market on Friday, faded out at the moment.  Secretary of Defense James Mattis announced that the strike was a onetime shot. Notably, Syria is a close ally of Russia. However, investors seem confident that further escalation of the conflict is uncalled for. 

Economic Data

The U.S. Commerce Depart reported that retail sales rose 0.6% in March beating the consensus estimate of 0.4%. Auto sales jumped 2%, highest in six months.

Stocks That Made Headlines

J. B. Hunt's Q1 Earnings Miss, Revenues Beat, Rise Y/Y

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported mixed results in the first quarter of 2018. (Read More)

ConocoPhillips Completes 2018 Winter Appraisal Program

ConocoPhillips (COP - Free Report) has wrapped up its 2018 winter exploration and appraisal program in Alaska. (Read More)

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.

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