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On Thursday, Nasdaq Composite closed at record high level led by strong performance of media and telecom stocks. Court’s approval of AT&T - Time Warner merger deal fueled a media and telecom stock rally. Moreover, strong U.S. economic data and the decision of the European Central Bank (ECB) to persist with low-interest rates till mid-2019 bolstered investors’ confidence. However, the Dow declined marginally as a drop in 10-year U.S. Treasury yield followed by the ECB’s decision affected major banking stocks.
The Dow Jones Industrial Average (DJI) closed at 25,175.31, down 0.1%. However, the S&P 500 Index (INX) increased 0.3% to close at 2,782.49. The Nasdaq Composite Index (IXIC) closed at 7,761.04, gaining 0.9%. A total of 6.75 billion shares were traded on Thursday, higher than the last 20-session average of 6.7 billion shares. Advancers outnumbered decliners on the NYSE by 1.33-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.35- to-1 ratio. The CBOE VIX decreased 6.3% to close at 12.12, its biggest one-day percentage decline since Jun 1.
How Did the Benchmarks Perform?
The Dow lost 0.1%, reflecting its third straight loss. Shares of JPMorgan Chase & Co. (JPM - Free Report) lost 1.8%, emerging as the largest drag on the blue-chip index. JPMorgan Chase carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Notably, 18 of the 30-stocks in the blue-chip index closed in the red while 11 traded in the green and 1 remain unchanged.
The S&P 500 was up 0.3% due to 1.2% gain of the Utilities Select Sector SPDR (XLU), 1% increase of both Real Estate Select Sector SPDR (XLRE) and Consumer Discretionary Select Sector SPDR (XLY) partially offset by 0.9% loss of Financials Select Sector SPDR (XLF). Notably, eight out of 11 sectors of the benchmark index ended in positive territory.
The tech-laden Nasdaq Composite increased 0.9% to close at record high level of 7,761.04. The index reached its all-time high level of 7,768.60 in the intraday trading. Strong performance of media and telecom stocks were the primary drivers for the tech-heavy index.
Media and Telecom Stocks Rally
A U.S. district court’s verdict in favor of an unconditional merger of AT&T Inc. (T) and Time Warner Inc. immediately triggered a battle between Comcast Corp. (CMCSA - Free Report) and The Walt Disney Co. (DIS - Free Report) regarding the acquisition of majority assets of Twenty-First Century Fox Inc. (FOXA - Free Report) .
Speculation on many more merger deals in near future in the integrated telecom-cable TV-media space has significantly raised stock prices of most of the major stocks of media, telecom and cable TV industries. The tech-based Nasdaq Composite was the largest beneficiary of this market trend which helped the index to achieve new all-time high level.
ECB to Follow Low-Interest Policy
On Jun 14, the ECB, announced after its governing council meeting that the central bank will continue its low interest rate policy and benchmark rates will remain unchanged until mid-2019. Moreover, the central bank has opted for a phased elimination of its ongoing monthly bond purchase program by the end of this year.
The ECB expects to continue purchasing €30 billion a month worth of bonds through the end of September. Following this period, if mid-term inflation data comes in line with its expectations, then the central bank may reduce bond purchases to €15 billion a month through the end of December and ultimately end the program.
The ECB’s decision reduced the yield on 10-year U.S. Treasury Note by 3.6 basis point to 2.92% affecting major banking stocks.
Economic Data
The Commerce Depart reported that the U.S. retail sales soared 0.8% in May, its biggest rise since November 2017. The consensus estimate was for an increase of 0.4%. Meanwhile, retail sales data for April was revised up to 0.4% instead of the previously reported 0.2% gain. In May, auto sales rose 0.5% compared with a gain of 0.2% in April. Sales at building material stores rebounded 2.4% in May after declining 0.8% in April. Sales at clothing stores rose 1.3%, its largest gain since March 2017. Sales at restaurants and bars climbed 1.3%, its biggest gains since January 2017.
The Labor Department reported that applications for U.S. unemployment benefits dropped 4,000 to a seasonally adjusted 218,000 for the week ended Jun 9 lower than the consensus estimate of 222,000. Initial claims declined to a near 44½-year low, reflecting growing tightness of the U.S. labor market with unemployment rate of as low as 3.8%.
Shares of The Michaels Companies Inc. declined as much as 14% yesterday. The reason for the stock’s slump was its soft comparable store sales. (Read More)
Cardinal Health Inc. (CAH - Free Report) and Clayton, Dubilier & Rice (CD&R) recently announced a joint investment plan in naviHealth. (Read More)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Stock Market News For Jun 15, 2018
On Thursday, Nasdaq Composite closed at record high level led by strong performance of media and telecom stocks. Court’s approval of AT&T - Time Warner merger deal fueled a media and telecom stock rally. Moreover, strong U.S. economic data and the decision of the European Central Bank (ECB) to persist with low-interest rates till mid-2019 bolstered investors’ confidence. However, the Dow declined marginally as a drop in 10-year U.S. Treasury yield followed by the ECB’s decision affected major banking stocks.
The Dow Jones Industrial Average (DJI) closed at 25,175.31, down 0.1%. However, the S&P 500 Index (INX) increased 0.3% to close at 2,782.49. The Nasdaq Composite Index (IXIC) closed at 7,761.04, gaining 0.9%. A total of 6.75 billion shares were traded on Thursday, higher than the last 20-session average of 6.7 billion shares. Advancers outnumbered decliners on the NYSE by 1.33-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.35- to-1 ratio. The CBOE VIX decreased 6.3% to close at 12.12, its biggest one-day percentage decline since Jun 1.
How Did the Benchmarks Perform?
The Dow lost 0.1%, reflecting its third straight loss. Shares of JPMorgan Chase & Co. (JPM - Free Report) lost 1.8%, emerging as the largest drag on the blue-chip index. JPMorgan Chase carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Notably, 18 of the 30-stocks in the blue-chip index closed in the red while 11 traded in the green and 1 remain unchanged.
The S&P 500 was up 0.3% due to 1.2% gain of the Utilities Select Sector SPDR (XLU), 1% increase of both Real Estate Select Sector SPDR (XLRE) and Consumer Discretionary Select Sector SPDR (XLY) partially offset by 0.9% loss of Financials Select Sector SPDR (XLF). Notably, eight out of 11 sectors of the benchmark index ended in positive territory.
The tech-laden Nasdaq Composite increased 0.9% to close at record high level of 7,761.04. The index reached its all-time high level of 7,768.60 in the intraday trading. Strong performance of media and telecom stocks were the primary drivers for the tech-heavy index.
Media and Telecom Stocks Rally
A U.S. district court’s verdict in favor of an unconditional merger of AT&T Inc. (T) and Time Warner Inc. immediately triggered a battle between Comcast Corp. (CMCSA - Free Report) and The Walt Disney Co. (DIS - Free Report) regarding the acquisition of majority assets of Twenty-First Century Fox Inc. (FOXA - Free Report) .
Speculation on many more merger deals in near future in the integrated telecom-cable TV-media space has significantly raised stock prices of most of the major stocks of media, telecom and cable TV industries. The tech-based Nasdaq Composite was the largest beneficiary of this market trend which helped the index to achieve new all-time high level.
ECB to Follow Low-Interest Policy
On Jun 14, the ECB, announced after its governing council meeting that the central bank will continue its low interest rate policy and benchmark rates will remain unchanged until mid-2019. Moreover, the central bank has opted for a phased elimination of its ongoing monthly bond purchase program by the end of this year.
The ECB expects to continue purchasing €30 billion a month worth of bonds through the end of September. Following this period, if mid-term inflation data comes in line with its expectations, then the central bank may reduce bond purchases to €15 billion a month through the end of December and ultimately end the program.
The ECB’s decision reduced the yield on 10-year U.S. Treasury Note by 3.6 basis point to 2.92% affecting major banking stocks.
Economic Data
The Commerce Depart reported that the U.S. retail sales soared 0.8% in May, its biggest rise since November 2017. The consensus estimate was for an increase of 0.4%. Meanwhile, retail sales data for April was revised up to 0.4% instead of the previously reported 0.2% gain. In May, auto sales rose 0.5% compared with a gain of 0.2% in April. Sales at building material stores rebounded 2.4% in May after declining 0.8% in April. Sales at clothing stores rose 1.3%, its largest gain since March 2017. Sales at restaurants and bars climbed 1.3%, its biggest gains since January 2017.
The Labor Department reported that applications for U.S. unemployment benefits dropped 4,000 to a seasonally adjusted 218,000 for the week ended Jun 9 lower than the consensus estimate of 222,000. Initial claims declined to a near 44½-year low, reflecting growing tightness of the U.S. labor market with unemployment rate of as low as 3.8%.
Stock That Made Headline
Michaels Companies Tops Q1 Earnings, Falls on Soft View
Shares of The Michaels Companies Inc. declined as much as 14% yesterday. The reason for the stock’s slump was its soft comparable store sales. (Read More)
Cardinal Health, CD&R to Jointly Invest in naviHealth
Cardinal Health Inc. (CAH - Free Report) and Clayton, Dubilier & Rice (CD&R) recently announced a joint investment plan in naviHealth. (Read More)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>