Dow industrials score a 20-point boost from Caterpillar, Boeing stock gains

Shares of Caterpillar and Boeing on Thursday were contributing about 20 points to a healthy rise in the Dow Jones Industrial Average. The pair of Dow DJIA, +0.34% components were both adding about 10 points each to the price-weighted gauge, with Caterpillar Inc. CAT, +1.03% rising by 1.5% and Boeing Co. BA, +0.98% climbing 0.8% in early trade. Most recently, the Dow was up 0.3% at 21,076. Overall, the U.S. stock market was enjoying an uptrend that has taken the S&P 500 index SPX, +0.44% and the Nasdaq Composite Index COMP, +0.69% to touch intraday records, putting equities on pace to extend a string of consecutive advances to a sixth day, following a rough week, driven lower by heightened fear of political risk in the White House.

Dow closes up more than 200 points as French vote triggers relief rally

Shares of Caterpillar and Boeing on Thursday were contributing about 20 points to a healthy rise in the Dow Jones Industrial Average. The pair of Dow DJIA, +0.34% components were both adding about 10 points each to the price-weighted gauge, with Caterpillar Inc. CAT, +1.03% rising by 1.5% and Boeing Co. BA, +0.98% climbing 0.8% in early trade. Most recently, the Dow was up 0.3% at 21,076. Overall, the U.S. stock market was enjoying an uptrend that has taken the S&P 500 index SPX, +0.44% and the Nasdaq Composite Index COMP, +0.69% to touch intraday records, putting equities on pace to extend a string of consecutive advances to a sixth day, following a rough week, driven lower by heightened fear of political risk in the White House.

U.S. stocks rallied to finish higher Friday, with major indexes advancing more than 1% and the tech-heavy Nasdaq scoring a record high close following a strong showing by centrist Emmanuel Macron in the French presidential election, which averted fears of a euroskeptic-only runoff.

The Dow Jones Industrial Average DJIA, +0.34% jumped 216.13 points, or 1.1%, to close at 20,763.89, led by a 3.5% surge in shares of J.P. Morgan Chase & Co. JPM, -0.42%  and a 2.9% jump in Goldman Sachs Group Inc. GS, -0.61%

The S&P 500 SPX, +0.44% surged 25.46 points, or 1.1%, to 2,374.15, with nine of the index’s 11 sectors trading higher, led by a 2.2% gain in financials, its biggest one-day pop since March 1, and a 1.3% rise in both industrial and tech stocks. The biggest laggard on the session was real estate, which lost 0.9%.

The Nasdaq Composite Index COMP, +0.69% finished up 73.30 points, or 1.2%, to a record close at 5,983.82, after reaching an all-time high of 5,989.92 earlier in the session.

It could again be a make-or-break outcome for the U.S. markets, given that Mr. Trump often failed to provide satisfactory details on his ‘massive’ plans during his first 100 days at the office,” said Ozkardeskaya, in a note.

For some, that could be more on the “make” side for stocks. “There were fears that the recent knockback on health-care reforms may have stopped Trump in his tracks, yet this week’s announcement will put the bulls in the driving seat even when the French feel-good factor has faded,” said Joshua Mahony, market analyst at IG, in a note to clients.

 

Dow posts 12th straight record close as investors await Trump speech

U.S. stocks overcame early weakness to push further into record territory on Friday, with the Dow industrials posting a 12th straight record close as investors await a speech Tuesday night by President Donald Trump.

The Dow Jones Industrial Average DJIA, +0.34%  rose 15.68 points, or less than 0.1%, to finish at a record 20,837.44, led by gains for Caterpillar Inc. CAT, +1.03%  and Chevron Corp. CVX, -1.05% The 12-session run of record settlements matches the longest such streak, which ended in January 1987. The Dow has never seen 13 straight sessions of record closes, according to Dow Jones data.

The S&P 500 SPX, +0.44%  advanced 2.39 points, or 0.1%, to close at a record 2,369.73, with six of the 11 main sectors trading higher.

The Nasdaq Composite Index COMP, +0.69%  gained 16.59 points, or 0.3%, to close at 5,861.90, just a few points shy of a record, after recovering from an earlier decline.

Small-caps fared even better on Monday with the Russell 2000 index RUT, +0.06%  rising 1%, likely providing some support for the broader market, said Mark Kepner, managing director of sales and trading at Themis Trading.

Also, Monday saw sectors flip, Kepner said. Last week, defensive sectors like telecom, consumer staples, and utilities all rallied while energy and financials weakened. On Monday, those defensive sectors all slipped, while energy and financials led gainers.

“People are ultimately focused on what kind of tone President Trump will strike during his speech on Tuesday,” said Ian Winer, director of equity trading at Wedbush Securities.

“The biggest risk to stocks would be a speech that is nationalistic and protectionist, something markets do not like,” Winer said.

Stocks movers: Sotheby’s BID, +0.95%  shares surged 16% after the auction house posted earnings that beat estimates.

Shares of La Jolla Pharmaceutical Co. LJPC, -1.35%  soared 77%, after the drugmaker announced positive results from a phase 3 trial of its hypotension treatment.

Tegna Inc. TGNA, +1.11%  shares rose 3.5% after the media company reported quarterly earnings that topped Wall Street estimates.

The dollar DXY, +0.08%  was flat, while the British pound GBPUSD, -0.4327%  came under early pressure on worries about a push for a second Scottish independence referendum. Oil prices US:CLJ7  gained 6 cents to settle at $54.04 a barrel, while gold US:GCJ7  prices settled up 50 cents to $1,258.80 an ounce. The yield on the 10-year Treasury note TMUBMUSD10Y, -0.47%  rose 5 basis points to 2.356%.

 

Dow Jones Levels: May 23 ,2017

(NYSE:DOW) inked two agreements that will help it to advance innovation and strategic agenda in the Kingdom of Saudi Arabia (“KSA”). The deals will bring state-of-the-art manufacturing technologies to KSA, supporting the Kingdom’s Vision 2030 for advanced manufacturing development plan and economic diversification.

Per one of the agreements, Dow will construct advanced manufacturing facilities to produce varied range of water-treatment applications and polymers for coatings. The proposed investment also includes feasibility study of the proposed investment in the company’s Performance Silicones franchise.

The coating facility, located in PlasChem Park in Jubail, will address the needs of the Saudi Arabian market with an innovative range of acrylic-based polymers for water-treatment, industrial and architectural coatings and detergent applications. The facility will complement Dow’s existing coating capacities in the Middle-East, including Dubai, Jebel Ali and United Arab Emirates.

The proposed silicones investment includes construction of a fully integrated high performance silicones and world-scale siloxanes complex. The products manufactured from these utilities are aimed at industries and markets like personal and home care, solar energy, high performance building and construction, automotive, medical devices, and oil and gas.

The project, upon completion, will support the economic impact of KSA through creation of roughly 350 full-time technology jobs. The investment will also open up about 1,000 jobs during the peak construction season. It will also create about 100 high-skilled and full-time operational jobs in the Kingdom that will support sustainable economic growth and ramp up domestic manufacturing.

Dow has been long-term strategic partner in Saudi Arabia for almost 4 decades. It is also the largest foreign investor in the country. Dow became the first company to obtain trading license from the Government of Saudi Arabia, permitting full ownership in the trading sector.

Dow maintains several joint ventures in the region including Saudi Arabian Oil Company (Saudi Aramco) and Sadara Chemical Company. Sadara is one of the world’s largest integrated chemical facilities comprising of 26 manufacturing units, of which 19 units are either in start-up or operating mode. The deal will integrate the former Dow Corning silicones business into Dow, accelerating the development of new hybrid materials and unique technologies for regional-specific needs.

Dow’s shares have declined 3.3% in the last three months, underperforming the Zacks categorized Chemicals-Diversified industry’s dip of 0.3%.

Dow topped earnings expectations in first-quarter 2017, on the back of cost-cutting and productivity actions and continued focus on consumer-driven markets. The company is witnessing strong demand across major consumer-focused markets such as packaging, infrastructure, transportation and consumer care, which is contributing to volume and earnings growth.

However, Dow is exposed to currency headwinds and the company sees an impact of 3–6 cents per share from headwind associated with foreign exchange translation in second-quarter 2017. This is expected to largely offset the benefits from productivity actions.

Dow sheds 370 points; stocks close lower and wipe out monthly gains on Trump fears

  • The Dow and S&P recorded their worst day since September of last year. The Nasdaq composite posted its worst session since June 24.
  • Traditional safe havens, in turn, caught a bid as the benchmark 10-year yield fell to about 2.21 percent. The yen also rose against the dollar to trade at 111.05.

U.S. equities closed sharply lower on Wednesday as investors fretted over the latest news coming out of Washington.

“This is clearly Washington-driven,” said Michael Shaoul, chairman and CEO of Marketfield Asset Management. “It’s a lot like 1998-99, when the market had to deal with the [Monica] Lewinsky scandal.”

The Dow Jones industrial average ended about 370 points lower, with Goldman Sachs contributing the most losses. The S&P 500 dropped 1.8 percent, with financials tumbling 3.1 percent to lead decliners. Financials posted their worst day since June 24 were pulled down by banks, with the SPDR S&P Bank ETF (KBE) falling 3.9 percent.

 The Nasdaq composite lagged, shedding 2.6 percent, and posted its worst session since June 24.

The major indexes also gave up their gains for the month. The Dow and S&P also recorded their worst day since September of last year.

NBC News confirmed Tuesday a report from The New York Times that former FBI Director James Comey put together a memo outlining a conversation in which President Donald Trump allegedly asked him to halt an investigation into Michael Flynn, the former national security adviser.

Later on Tuesday, House Oversight Committee Chairman Jason Chaffetz asked the FBI for any records it has on communications between Trump and Comey.

“Earnings have provided a good fundamental base for the market, but I’m beginning to wonder if this news item is the straw that breaks the camel’s back,” said David Schiegoleit, managing director of investments at U.S Bank Private Client Reserve.

Traditional safe havens caught a bid as the benchmark 10-year yield fell to about 2.21 percent. The yen also rose against the dollar to trade at 110.99.

“If special prosecutors are hired or there is more talk about obstruction of justice being an impeachable offense, one can kiss the tax plan, health care plan, and fiscal stimulus plan goodbye for 2017,” Andy Brenner, head of international fixed income securities at National Alliance Securities, said in a note Monday.

Stocks have rallied all year in part because of the hope for lower corporate taxes. Lately, the major indexes have pushed towards record levels, with the S&P and Nasdaq notching all-time highs earlier this week.

The administration has said in the past that it uses the stock market as its economic report card, but the White House said Wednesday it had no comment on the sell-off.

The Dow Jones industrial average fell 372.82 points, or 1.78 percent, to close at 20,606.93, with Goldman Sachs leading decliners and UnitedHealth the top advancer.

The S&P 500 dropped 43.64 points, or 1.82 percent, to end at 2,357.03, with financials leading nine sectors lower and real estate outperforming.

The Nasdaq pulled back 158.60 points, or 2.57 percent, to close at 6,011.24.

About four stocks declined for every advancer at the New York Stock Exchange, with an exchange volum

Dow closes about 90 points higher

U.S. stocks rose on Monday as President Donald Trump continued his first trip abroad since taking office.

The Dow Jones industrial average advanced about 90 points, with Boeing and 3M contributing the most gains.

The S&P 500 rose 0.5 percent, with information technology leading advancers. Tech has been the best-performing sector in the S&P this year, rising 18 percent.

The Nasdaq composite outperformed, gaining 0.82 percent.

“President Trump’s first trip overseas has put some of his domestic troubles on the back burner which should temporarily eliminate some of the headline risk that has frustrated the bulls,” said Jeremy Klein, chief market strategist at FBN Securities, in a note.

Trump arrived in Tel Aviv Monday and described his visits as a “rare opportunity to bring security and stability and peace to this region and to its people.”

His two-day visit to Israel will include separate meetings with Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas. Trump also plans to visit the Holocaust memorial Yad Vashem and the Western Wall, an important key Jewish holy site.

Trump’s visit to Israel comes after Trump visited Saudi Arabia, a trip that ended with a multi-billion-dollar arms deal. Defense-related stocks popped on the back of the deal, with the iShares U.S. Aerospace & Defense ETF (ITA) rising about 0.9 percent.

Private equity firm Blackstone also announced the creation of a $40 billion infrastructure investment fund with Saudi Arabia’s Public Investment Fund, the country’s main sovereign wealth fund. Blackstone shares spiked more than 6 percent.

Trump’s trip came after one of the worst weeks of his presidency as news broke that Trump allegedly tried to influence an FBI investigation. Stocks suffered their worst day of the year Wednesday, as the three major indexes dropped more than 1 percent.

“It’s basically a case of no news is good news. There hasn’t been anything incremental since then,” said Aaron Clark, portfolio manager at GW&K Investment Management.

U.S. stock futures traded higher before the open, with Dow futures rising 47 points, while S&P and Nasdaq futures gained 3.25 points and 11 points, respectively.

“The news of the deal is positive, but there are two factors that are being overlooked,” said Peter Cardillo, chief market economist at First Standard Financial, referring to a North Korea missile test and testimony from former FBI Director James Comey. “These clouds of uncertainty are not evaporating,” First Standard’s Cardillo said.

North Korea said Monday it successfully tested an intermediate-range ballistic missile, further defying calls to curb its nuclear program. Meanwhile, Comey agreed last week to testify in an open Senate session sometime after Memorial Day; his testimony could raise questions about the future of Trump’s presidency.

DOW Tumbled On Trump Turmoil, Dollar Dived As Markets Paring Fed June Hi

The financial markets are rocked as US President Donald Trump’s political turmoil intensified. DOW dropped sharply by -372.82 pts, or -1.78% to close at 20606.93 overnight, the worst day since last September. S&P 500 lost -43.64 pts, or -1.82% to close at 2357.03. NASDAQ fell -158.63 pts, or -2.57% to close at 6011.24. Treasury yield also tumbled sharply with 10 year yield losing -0.113 to close at 2.216. Dollar is deeply and broadly sold off with the dollar index hitting as low as 97.33. Gold surges on Dollar weakness and breaches 1260 handle, comparing to last week’s low at 1214.3. In the currency markets, Swiss Franc and Japanese Yen are trading as the strongest major currencies for the week on safe haven flow. But Euro is not far behind as the third strongest one.

Trump’s turmoil worsened after report of his intervention on FBI investigation of former national security advisor Michael Flynn. Several congressional panels are requesting testimony from former FBI Director James Comey, fired by Trump, on the issue. At the current moment, Republican politicians generally avoided direct response to the issue while House Speaker Paul Ryan said he has full confidence on the President. But there are already some Republicans calling for new investigative panels. The Justice Department has named former FBI Director Robert Mueller as the special counsel of oversee the investigation on Russia’s intervention of last year’s presidential election.

The change in market expectation is clearly reflected in the Dollar index too. Now with strong break of 55 week EMA, it’s raising the chance that 103.82 is a medium term top after failing 61.8% projection of 78.90 to 100.39 from 91.91 at 105.19. That is, the five wave sequence from 72.69 could be completed. The index will remain vulnerable as long as 99.88 resistance holds. And further downside acceleration will pull the index to 91.91 cluster support (38.2% retracement of 72.69 to 103.82 at 91.91) before having strong support for sustainable rebound.

 

Dow, DuPont Merger Gets Conditional Approval In Brazil

Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) said that Brazil’s Administrative Council for Economic Defense (“CADE”) has conditionally approved their proposed $130 billion mega-merger. This represents another important milestone for the planned merger transaction.

The approval is subject to the implementation of certain remedies that include the sale of a select portion of Dow AgroSciences’ corn seed business in Brazil. These include certain seed processing plants and seed research centers, a copy of Dow AgroSciences’ Brazilian corn germplasm bank and a license for the use of the Dow Seeds brand for a specific period of time.

This is in addition to the earlier announced sale of certain parts of DuPont’s crop protection business and R&D pipeline and organization and Dow’s global ethylene acrylic acid copolymers and ionomers business, which is in sync with commitments already made to the European Commission (“EC”) and regulatory agencies in other jurisdictions.

The EC conditionally approved the merger in Mar 2017 after both companies committed to sell major portions of different businesses. Moreover, the companies, earlier this month, secured conditional regulatory approval in China for the planned merger.

Dow and DuPont continue to work constructively with regulators in the remaining relevant jurisdictions to obtain approval for the merger. The companies continue to expect the closing of the deal to take place between Aug 1, 2017 and Sep 1, 2017.

Dow and DuPont also recently declared the members of the board of directors for the proposed merger. The board of the combined entity will consist of 16 directors – eight incumbent Dow directors and eight current DuPont directors. The appointments will be effective on completion of the merger.

Moreover, Dow recently provided an update on the transition of its CEO Andrew Liveris. The company noted that Liveris will serve as the executive chairman of the combined entity from closing of the merger through Apr 1, 2018, when he will become the chairman of the integrated company. Liveris will then retire from the company and the board on Jul 1, 2018.

Dow’s shares have rallied around 18.6% over a year, modestly underperforming the Zacks categorized Chemicals-Diversified industry’s gain of roughly 20.5%.

Dow futures fall sharply as Asia also hit by Trump woes

Dow futures tumbled in Asia on Wednesday and Asian equities fell on the continued chaotic U.S. political situation weighing on expectations for economic policies favoring tax cuts and higher spending and as key lawmakers call for a memo reportedly written by former FBI director James Comey on Trump discussing an active investigation to be released.

The Dow Jones industrial average futures for June tumbled 121 points to 20,813 and Japan’s Nikkei 225 slipped 0.62%, while the s&P/ASx 200 fell 0.81%.

“Underneath the surface this is a very tired bull growing very impatient with Washington,” said Larry McDonald, head of U.S. macro strategies at ACG Analytics, noting “fewer and fewer stocks are leading this market.”

Overnight, U.S. stocks closed roughly flat on Tuesday, as investors mulled over weaker than expected economic data while U.S. political turmoil intensified, after reports surfaced that President Trump shared sensitive information with Russia.

Reports on Tuesday, that President Donald Trump shared sensitive information with Russia at a meeting last week, had little impact on U.S. equities, as the S&P and Dow ended the session roughly flat while the Nasdaq closed in record territory for a second-straight day.

In a series of tweets, President Trump defended his decision to share sensitive information with Russia, insisting that he had “the absolute right” to share “facts” about terrorism with Russia.

Meanwhile, on the economic data front, investors digested mixed economic reports, after housing data fell below expectations while industrial production surged.

The Commerce Department said Tuesday, housing starts dropped 2.6% to a seasonally adjusted annual rate of 1.17 million units, the lowest level in five months, and below expectations for a 3.7% rise.

In a separate report on Tuesday, the Federal Reserve said Tuesday that U.S. industrial production at factories, mines and utilities rose 1% in April from March, well above expectations for 0.4% increase.

Elsewhere, Treasury Secretary Steven Mnuchin on Tuesday met with chief executives of some of the nation’s largest retailers amid worries of a slowdown in the sector.

The Dow Jones Industrial Average closed at 20,979.75, down 0.1%. The S&P 500 closed flat while the Nasdaq Composite closed at 6169.87, up 0.33%.

Dow futures tumble on Trump political woes and Asian markets fall as safe-haven yen climbs

Asian markets were mostly lower on Wednesday, with Dow futures tumbling and the safe-haven yen climbing amid political and legal turmoil surrounding President Donald Trump .

“Investors are deeply concerned that all the political noise will morph into economic risk as the political back-fence talk, speculation and dirty laundry could detract from Trump’s key agenda: Tax reform,” Stephen Innes, senior trader at OANDA, said in a note on Wednesday.

The Dow Jones industrial average futures for June tumbled 107 points to 20,828 by 2:16 p.m. HK/SIN, after trading as low as 20,802 earlier in the session, compared with the index’s close at 20,979.75, as risk-off sentiment struck the market.

 The Nikkei fell 0.53 percent, or 104.94 points, to end at 19,814.88, as the safe-haven yen strengthened in the wake of renewed political risk. The dollar was fetching just 112.34 yen at 2:17 p.m. HK/SIN, an around two-week low.

Hong Kong’s Hang Seng Index edged down 0.19 percent by 3:26 p.m. HK/SIN. On the mainland, the Shanghai Composite ended down 0.26 percent, or 8.22 points, at 3104.74, while the Shenzhen Composite edged up 0.13 percent, or 2.42 points, to end at 1867.68..

In South Korea, the Kospi ended down 0.15 percent, or 3.52 points, at 2291.53.

Australia’s S&P/ASX 200 dropped 1.10 percent, or 64.52 points, to end at 5786.00.

The euro rose to a six-month high as political event risk receded from the continent after Germany’s ruling party Christian Democrats (CDU) performed well in recent elections. The common currency last traded against the dollar, rising as high as $1.1122, compared with levels under $1.09 last week.

“Receding political risks and stable growth are likely to fuel QE taper expectations,” DBS said in a note on Wednesday. “Markets are pricing in a tighter policy over the next twelve months.”

“Paradoxically, EU break-up fears have now given way to hopes for more EU unity and possibly German-led growth after the German elections,” DBS said.

The Aussie strengthened against the dollar for a sixth straight session to trade at $0.7441.

Among stock movers, Australian banks weighed the market, with ANZ falling 1.29 percent and NAB down 2.13 percent. The sector has been under pressure since the Australian budget, announced last week, included plans to impose a levy on the earnings of large banks.

Additionally, in a note on Wednesday, ratings agency Moody’s cited concerns that Australia’s increasing household leverage, driven by surging home prices, and low wage growth were increasing risks for the country’s bank sector.

Chinese tech stocks are also likely to be in the spotlight, with the Hong Kong-listed Tencent expected to report earnings today. Nasdaq-listed Weibo and Sina released their earnings for the first quarter in the U.S. on Tuesday. Sina rose sharply after earnings per share came in at $0.50 per share, well above FactSet estimates of $0.17.Tencent shares were up 0.39 percent at 2:34 p.m. HK/SIN.

Overnight in the U.S., the Dow Jones industrial average fell 2.19 points, or 0.01 percent to close at 20,979.75 and the S&P 500 slipped 1.65 points, or 0.07 percent, to end at 2,400.67, while the Nasdaq advanced 20.20 points, or 0.33 percent, to close at 6,169.87 after touching an intraday record high.