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Wall Street closed slightly higher on Friday as gains in financial sector following a spike in 10-year U.S. Treasury Note yield was mostly offset by news that President Trump has given a go ahead to imposition of $200 billion of fresh tariffs on Chinese goods. The Dow and S&P 500 gained marginally while Nasdaq Composite ended in the red. However, for the week as a whole, all three major stock indexes moved northward impressively.
The Dow Jones Industrial Average (DJI) closed at 26,154.67, gaining 8.68 points. The S&P 500 Index (INX) was up 0.80 points to close at 2,904.98. However, the Nasdaq Composite Index (IXIC) closed at 8,010.04, decreasing 0.1%. A total of 6.2 billion shares were traded on Friday, marginally higher than the last 20-session average of 6.1 billion shares. Advancers outnumbered decliners on the NYSE by 1.04-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.12-to-1 ratio. The CBOE VIX decreased 2.4% to close at 12.07.
How Did the Benchmarks Perform?
The Dow closed in positive territory for the fourth straight day with 14 components of the 30-stock blue-chip index closed in the green while 16 finished in the red. The tech-heavy Nasdaq Composite declined marginally reversing its previous day’s winning run.
The S&P 500 continued its winning streak for fifth straight day led by a gain of 0.7% in Financials Select Sector SPDR (XLF) and 0.5% rise in both Energy Select Sector SPDR (XLE) and Industrials Select Sector SPDR (XLI). Notably, only 3 out of 11 sectors of the benchmark index finished in the green while eight ended in the red.
Spike in Government Bond Yield Lifts Financial Sector
On Sep 14, the yield on benchmark 10-year U.S. Treasury Note hits 3% for the first time since Aug 2. Expectations of higher economic growth in the third quarter of 2018 were the primary reason for the hike in government bond yield. The Commerce Department has revised U.S. retail sales data for July from previous stated gain of 0.5% to 0.7%. Notably, consumer spending constitutes more than two-third of U.S. GDP. Higher industrial production and a record high U.S. consumer sentiment index also bolstered investor’s confidence in equities resulting in a spike in the U.S. 10-year Treasury Note yield.
On Sep 14, the Bloomberg reported that President Trump has ordered his aides to go ahead with levying a fresh round of tariffs on Chinese goods worth $200 billion. Trump’s order came despite the fact the both United Sates and China are looking for a fresh round of negotiation to solve trade related issues. Both countries have already imposed $50 billion of tariffs on each other. Last week, Trump tweeted that his administration will impose another round of tariffs worth $267 billion on Chinese imports if it retaliates against U.S. tariffs. China is reportedly seeking permission from the World Trade Organization to impose sanctions upon the United States.
Economic Data
On Sep 14, the Commerce Department reported that U.S. retail sales for the month of August grew by 0.1%, the smallest increase since February. The figure was also below the consensus estimate of an increase of 0.5%. Year over year, retail sales climbed 6.6% in August. However, July data was revised upwardly from a gain of 0.5% to 0.7%.
The Federal Reserve reported that U.S. industrial production grew 0.4% in August beating the consensus estimate of 0.3%. Year over year, industrial production grew 4.9% in August. Capacity utilization increased to 78.1%, the highest level since April. The figure was almost in line with the consensus estimate.
The Labor Department reported that import prices fell 0.6% in August, marking its biggest drop since February 2016. The consensus estimate was for a decline of 0.2%. Export prices also fell 0.1% in August, wider than the consensus estimate of a fall of 0.02%.
The University of Michigan's Surveys of Consumers sentiment index reached 100.8 in September beating the consensus estimate of 96.8. The reading is also the second highest since 2004.
Weekly Roundup
Wall Street performed impressively in the second week of September. All three major stock indexes closed in the green following losses in the previous week. The Dow 30, S&P 500 and Nasdaq Composite climbed 0.9%, 1.2% and 1.4%, respectively. Moreover, the CBOE VIX – Wall Street’s preferred gauge of volatility – declined nearly 19% over the week, marking its biggest weekly drop since April.
Strong economic data like industrial production, capacity utilization, import price index, initial claims and U.S. consumer sentiment restored investor’s faith in risker assets like equities. Strong U.S. economic fundamentals helped market participants to largely ignore ongoing trade conflicts between the United States and China.
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Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
Image: Bigstock
Stock Market News For Sep 17, 2018
Wall Street closed slightly higher on Friday as gains in financial sector following a spike in 10-year U.S. Treasury Note yield was mostly offset by news that President Trump has given a go ahead to imposition of $200 billion of fresh tariffs on Chinese goods. The Dow and S&P 500 gained marginally while Nasdaq Composite ended in the red. However, for the week as a whole, all three major stock indexes moved northward impressively.
The Dow Jones Industrial Average (DJI) closed at 26,154.67, gaining 8.68 points. The S&P 500 Index (INX) was up 0.80 points to close at 2,904.98. However, the Nasdaq Composite Index (IXIC) closed at 8,010.04, decreasing 0.1%. A total of 6.2 billion shares were traded on Friday, marginally higher than the last 20-session average of 6.1 billion shares. Advancers outnumbered decliners on the NYSE by 1.04-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.12-to-1 ratio. The CBOE VIX decreased 2.4% to close at 12.07.
How Did the Benchmarks Perform?
The Dow closed in positive territory for the fourth straight day with 14 components of the 30-stock blue-chip index closed in the green while 16 finished in the red. The tech-heavy Nasdaq Composite declined marginally reversing its previous day’s winning run.
The S&P 500 continued its winning streak for fifth straight day led by a gain of 0.7% in Financials Select Sector SPDR (XLF) and 0.5% rise in both Energy Select Sector SPDR (XLE) and Industrials Select Sector SPDR (XLI). Notably, only 3 out of 11 sectors of the benchmark index finished in the green while eight ended in the red.
Spike in Government Bond Yield Lifts Financial Sector
On Sep 14, the yield on benchmark 10-year U.S. Treasury Note hits 3% for the first time since Aug 2. Expectations of higher economic growth in the third quarter of 2018 were the primary reason for the hike in government bond yield. The Commerce Department has revised U.S. retail sales data for July from previous stated gain of 0.5% to 0.7%. Notably, consumer spending constitutes more than two-third of U.S. GDP. Higher industrial production and a record high U.S. consumer sentiment index also bolstered investor’s confidence in equities resulting in a spike in the U.S. 10-year Treasury Note yield.
Higher interest rate bodes well for the financial sector. Consequently, shares of Morgan Stanley (MS - Free Report) , Bank of America Corp. (BAC - Free Report) and The Goldman Sachs Group Inc. (GS - Free Report) were up 1%, 0.8% and 0.4%, respectively. All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
US – China Trade Conflicts Escalate
On Sep 14, the Bloomberg reported that President Trump has ordered his aides to go ahead with levying a fresh round of tariffs on Chinese goods worth $200 billion. Trump’s order came despite the fact the both United Sates and China are looking for a fresh round of negotiation to solve trade related issues. Both countries have already imposed $50 billion of tariffs on each other. Last week, Trump tweeted that his administration will impose another round of tariffs worth $267 billion on Chinese imports if it retaliates against U.S. tariffs. China is reportedly seeking permission from the World Trade Organization to impose sanctions upon the United States.
Economic Data
On Sep 14, the Commerce Department reported that U.S. retail sales for the month of August grew by 0.1%, the smallest increase since February. The figure was also below the consensus estimate of an increase of 0.5%. Year over year, retail sales climbed 6.6% in August. However, July data was revised upwardly from a gain of 0.5% to 0.7%.
The Federal Reserve reported that U.S. industrial production grew 0.4% in August beating the consensus estimate of 0.3%. Year over year, industrial production grew 4.9% in August. Capacity utilization increased to 78.1%, the highest level since April. The figure was almost in line with the consensus estimate.
The Labor Department reported that import prices fell 0.6% in August, marking its biggest drop since February 2016. The consensus estimate was for a decline of 0.2%. Export prices also fell 0.1% in August, wider than the consensus estimate of a fall of 0.02%.
The University of Michigan's Surveys of Consumers sentiment index reached 100.8 in September beating the consensus estimate of 96.8. The reading is also the second highest since 2004.
Weekly Roundup
Wall Street performed impressively in the second week of September. All three major stock indexes closed in the green following losses in the previous week. The Dow 30, S&P 500 and Nasdaq Composite climbed 0.9%, 1.2% and 1.4%, respectively. Moreover, the CBOE VIX – Wall Street’s preferred gauge of volatility – declined nearly 19% over the week, marking its biggest weekly drop since April.
Strong economic data like industrial production, capacity utilization, import price index, initial claims and U.S. consumer sentiment restored investor’s faith in risker assets like equities. Strong U.S. economic fundamentals helped market participants to largely ignore ongoing trade conflicts between the United States and China.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>