When Senate majority leader Mitch McConnell announced on Tuesday that negotiations over a $2 trillion national bailout were "on the five-yard line," minority leader Chuck Schumer one-upped him, quipping that negotiations were on the two-yard line as he met and wrangled over details with Treasury Secretary Steven Mnuchin.
Presumptuously a bi-partisan effort, the back-and-forth between the administration and Senate leaders managed to lift spirts in lower Manhattan, sending stocks to record one-day gains as hope for financial relief appeared to be within reach.
The 2,113.01-point, 11.37 percent gain on the Dow Industrials was not only the greatest one-day point rise in market history, it was also the fourth-best percentage rise, following a 12.34 percent advance on October 30, 1929, when the market was just entering the Great Depression. At the time, the Industrial Average stood at 258.47, with its gain of 28.40 points.
Whether that comparison is fair or apocryphal remains to be seen, though it's a well-known fact that the greatest stock market gains occur during bear markets. Of the top seven one-day percentage gains, four were during the Great Depression, the other two occurring in the Great Financial Crisis, on October 13 and 28 of 2008. It would indeed be wise for market participants to pay heed to Tuesday's inclusion in this suspicious list.
The NASDAQ's 557.19-point rip was the second-most ever, following a 672.43-point advance on March 13, 2020, less than two-weeks ago. The 8.12 percent increase tied for seventh all-time with a similar percentage gain on April 18, 2001. At that time, the NASDAQ was well into the throes of the dot-com bust. The tech-laden index was then trading just above 2000, when a month prior it had reached all-time highs, breaking above 5000.
The story was the same for the S&P 500, which recorded the eighth-best percentage gain. The seven higher percentage gains were all made either during the Great Depression (five of them), while two happened in October, 2008. The S&P's 209.93-point rise stands second only to the 230.38-point advance on March 13 of this year.
While the Senate dithered over details, bulls were greatly relieved as they took it to the bears throughout the session. Led by Chevron (CVX) with a 22.74% increase, some of the top performers on the Dow Jones Industrial Average included American Express (AXP, +21.88%), beleaguered Boeing (BA, +20.89%), McDonald's (MCD, +18.13%), Goldman Sachs (GS, +13.80%), and 3M (MMM, +12.60%).
The outpouring of money and joy didn't stop at the corner of Wall Street and Broadway. The money flows extended into gold and silver, the two precious metals having recently been pounded below sensible levels. With one of its best one-day performances ever, gold advanced by some $84.80, finishing up at $1636.00 the ounce after a close at $1551.20 on Monday.
Silver rose from a close of 13.27 on Monday to end trading in New York at 14.36, a gain of 8.21 percent.
Oil was stable to higher, with WTI crude advancing from $23.36 per barrel to $24.01 on the day.
Generally, bonds sold off, led by treasuries with durations between one and 10 years. Yield on the 10-year note advanced eight basis points, from 0.76% to 0.84%. The largest gain of yield was found on the five-year note, which rose from 0.38% to 0.52%. The curve is still relatively flat, with yields in a narrow band of 138 basis points. The one, two, and three month bills all stand at 0.01%, with the 30-year bond checking in at 1.39%
While the Senate never did get to a cloture vote on Tuesday, the deal was eventually struck just before 1:00 am ET on Wednesday, when White House legislative affairs director Eric Ueland exited Senate Majority Leader Mitch McConnell’s office saying, according to CNN. “We have a deal.”
The full Senate is poised to vote on the package midday Wednesday. The House is expected to approve the bill by unanimous consent, sending it to the White House for President Trump's signature. The president is reportedly eager to sign the bill, sending money to individuals, families and businesses affected by events surrounding the coronavirus outbreak.
It is expected to advance direct payments of $1200 per citizen ($2400 for married couples) earning less than $75,000 a year. It is the largest stimulus bill ever made into law. With markets prepared to open shortly, futures are less-than-enthusiastic, as all of the major indices indicate a lower opening though Asian markets were up sharply overnight and European indices are mixed.
At the Close, Tuesday, March 24, 2020:
Dow Jones Industrial Average: 20,704.91, +2,113.01 (+11.37%)
NASDAQ: 7,417.86, +557.19 (+8.12%)
S&P 500: 2,447.33, +209.93 (+9.38%)
NYSE: 9,658.32, +880.94 (+10.04%)
Showing posts with label AXP. Show all posts
Showing posts with label AXP. Show all posts
Wednesday, March 25, 2020
Thursday, January 16, 2014
Stock Stories: Best Buy, Intel, Citi, more; What Does Friday Hold; Up or Down?
Markets reversed direction again on Thursday, evening out the week at two down, two up sessions with a weekly gain or loss for the major averages hanging in the balance, all coming down to Friday's closing bell.
The Dow Jones Industrials are 20 points below break even for the week, the S&P is already in the green, by a scant 3.52 points and the NASDAQ is defiantly 44.02 into positive territory, so unless Friday is dramatically lower, there's a very good chance that all three averages will finish the week with positive returns. Jolly good.
Interest rates, particularly the 10-year note, have been trending gradually lower through the first two weeks of 2014, with the lid fully on inflation expectations after this week's PPI and CPI nothing-burger-type data.
Making headlines was Best Buy (BBY), the remaining national electronics retailer, was absolutely bludgeoned, down more than 28% on the day, after reporting total holiday same-store sales dropped 0.8% from the previous year, while analysts so an increase of 0.5%. Total revenue declined to $11.45 billion in the holiday period from $11.75 billion a year earlier, and the company lowered its fourth-quarter guidance. With fourth-quarter and full-year results still forthcoming, investors took a quick exit, en masse, leaving many searching for answers to the retail conundrum that was the 2013 holiday season.
Citigroup reported adjusted earnings of $0.82 a share which missed on estimates of $0.96. Revenue also missed coming in at $17.94 billion versus estimates of $18.18 billion, down from last year's $18.66 billion. The company also announced it will replace all customer debit cards involved in the Target data breach last month, sending shares down 2.39 to 52.60 at the close, a loss of 4.35%.
After the bell, Intel reported a slight miss at 0.51 cents per share on estimates of 0.52 and issued some downbeat guidance, sending shares lower by more than 3% in after-hours trading.
American Express (AXP) and Capital One (COF) each missed on their fourth-quarter reports, sending shares down in the after hours. American Express reported a one-cent miss (1.25 vs. 1.26), while credit provider misses by a solid dime - 1.45 versus expected 1.55 - prompting the question from investors, "what's in their wallet?" Clearly, it was not what they were hoping.
DOW 16,417.01, -64.93 (-0.39%)
NASDAQ 4,218.69, +3.80 (+0.09%)
S&P 1,845.89, -2.49 (-0.13%)
10-Yr Note 99.15, +0.91 (+0.92%) Yield: 2.85%
NASDAQ Volume 1.83 Bil
NYSE Volume 3.46 Bil
Combined NYSE & NASDAQ Advance - Decline: 3069-2613
Combined NYSE & NASDAQ New highs - New lows: 382-38
WTI crude oil: 93.96, -0.21
Gold: 1,240.20, +1.90
Silver: 20.05, -0.08
Corn: 428.00, +2.25
The Dow Jones Industrials are 20 points below break even for the week, the S&P is already in the green, by a scant 3.52 points and the NASDAQ is defiantly 44.02 into positive territory, so unless Friday is dramatically lower, there's a very good chance that all three averages will finish the week with positive returns. Jolly good.
Interest rates, particularly the 10-year note, have been trending gradually lower through the first two weeks of 2014, with the lid fully on inflation expectations after this week's PPI and CPI nothing-burger-type data.
Making headlines was Best Buy (BBY), the remaining national electronics retailer, was absolutely bludgeoned, down more than 28% on the day, after reporting total holiday same-store sales dropped 0.8% from the previous year, while analysts so an increase of 0.5%. Total revenue declined to $11.45 billion in the holiday period from $11.75 billion a year earlier, and the company lowered its fourth-quarter guidance. With fourth-quarter and full-year results still forthcoming, investors took a quick exit, en masse, leaving many searching for answers to the retail conundrum that was the 2013 holiday season.
Citigroup reported adjusted earnings of $0.82 a share which missed on estimates of $0.96. Revenue also missed coming in at $17.94 billion versus estimates of $18.18 billion, down from last year's $18.66 billion. The company also announced it will replace all customer debit cards involved in the Target data breach last month, sending shares down 2.39 to 52.60 at the close, a loss of 4.35%.
After the bell, Intel reported a slight miss at 0.51 cents per share on estimates of 0.52 and issued some downbeat guidance, sending shares lower by more than 3% in after-hours trading.
American Express (AXP) and Capital One (COF) each missed on their fourth-quarter reports, sending shares down in the after hours. American Express reported a one-cent miss (1.25 vs. 1.26), while credit provider misses by a solid dime - 1.45 versus expected 1.55 - prompting the question from investors, "what's in their wallet?" Clearly, it was not what they were hoping.
DOW 16,417.01, -64.93 (-0.39%)
NASDAQ 4,218.69, +3.80 (+0.09%)
S&P 1,845.89, -2.49 (-0.13%)
10-Yr Note 99.15, +0.91 (+0.92%) Yield: 2.85%
NASDAQ Volume 1.83 Bil
NYSE Volume 3.46 Bil
Combined NYSE & NASDAQ Advance - Decline: 3069-2613
Combined NYSE & NASDAQ New highs - New lows: 382-38
WTI crude oil: 93.96, -0.21
Gold: 1,240.20, +1.90
Silver: 20.05, -0.08
Corn: 428.00, +2.25
Wednesday, April 17, 2013
Wall Street is Becoming a Falling Stock Zone
Is anyone other than the Fed governors and CNBC hosts convinced that ZIRP and QE aren't exactly working?
For the second day out of the past three, stocks suffered severe, across-the-board losses, extending the pullback that began on Friday.
The worst performing index has been the NASDAQ, which has dropped nearly 100 points since the close on Thursday (1300.18).
Dow stocks, predominated by high-yielding, dividend-producing income companies - the creme de la creme - have fared better, though the index is still down 247 points and there are still two days remaining in the trading week.
While the recent moves may be described as a precursor of the time-honored tradition of "sell in May and stay away," the directionality is troubling, because the US is supposed to be in a recovery.
Not helping matters much are the oddities coming out of Boston in the aftermath of Monday's bomb strikes, and Washington, where packages containing ricin have been showing up with increasing frequency.
Larger issues loom in Europe, where data continues to deteriorate, even in Germany, thought to be the bastion of strength.
Corporate earnings have been less-than-encouraging as well. Today's numbers from Bank of America (BAC) were notably weak, spurring the drop at the opening bell.
Still, the losses have not reached even three percent, so it may well be too early to make a call that direction has changed, though, as has been pointed out repeatedly here and elsewhere, bull markets do not last forever, and this one is heading into its 50th month.
Key data this week has included a wicked drop in the Empire State manufacturing index, from 9.2 to 3.1, a negative reading (-0.2) on CPI for March and a drop-off in building permits, suggesting that the housing sector may not be quite as healthy as the pundits have been preaching.
Volume on the day was particularly heavy, a signal not lost on both bulls and bears; decliners outpaced advancing issues four-to-one; new lows, for the first time this year, superseded new highs, and by a rather large amount, another key metric.
After the bell, both American Express (AXP) and eBay (EBAY) missed gross revenue targets and just barely beat (each by a penny) the per share earnings forecasts.
Commodities continue to be beaten down as deflationary forces appear to be winning at the present time. Depending upon which side you butter your bread, that may be good or bad news.
There is good news in oil, which hit a multi-month low. If prices for crude continue to depress and remain so, it won't be long before driving Americans finally get a break at the gas pump.
Gold and silver continue to be on sale, though shortages in physical metal are widespread and premiums over spot prices are ranging anywhere from 16 to 35 percent. If that condition persists, forget the gold and silver ETFs, they will eventually break down as the backers are unable to deliver physical metal on contracts.
LATE BREAKING: Senate votes down gun control "compromise" measure. Long live the 2nd amendment!
and...
Europe's leading parliamentarian, Nigel Farage:
Dow 14,618.59, -138.19 (0.94%)
NASDAQ 3,204.67, -59.96 (1.84%)
S&P 500 1,552.01, -22.56 (1.43%)
NYSE Composite 8,955.47, -130.96 (1.44%)
NASDAQ Volume 1,889,783,125
NYSE Volume 4,579,846,000
Combined NYSE & NASDAQ Advance - Decline: 1382-5083
Combined NYSE & NASDAQ New highs - New lows: 87-178 (this could be huge!)
WTI crude oil: 86.68, -2.04
Gold: 1,373.10, -14.30
Silver: 23.24, -0.383
For the second day out of the past three, stocks suffered severe, across-the-board losses, extending the pullback that began on Friday.
The worst performing index has been the NASDAQ, which has dropped nearly 100 points since the close on Thursday (1300.18).
Dow stocks, predominated by high-yielding, dividend-producing income companies - the creme de la creme - have fared better, though the index is still down 247 points and there are still two days remaining in the trading week.
While the recent moves may be described as a precursor of the time-honored tradition of "sell in May and stay away," the directionality is troubling, because the US is supposed to be in a recovery.
Not helping matters much are the oddities coming out of Boston in the aftermath of Monday's bomb strikes, and Washington, where packages containing ricin have been showing up with increasing frequency.
Larger issues loom in Europe, where data continues to deteriorate, even in Germany, thought to be the bastion of strength.
Corporate earnings have been less-than-encouraging as well. Today's numbers from Bank of America (BAC) were notably weak, spurring the drop at the opening bell.
Still, the losses have not reached even three percent, so it may well be too early to make a call that direction has changed, though, as has been pointed out repeatedly here and elsewhere, bull markets do not last forever, and this one is heading into its 50th month.
Key data this week has included a wicked drop in the Empire State manufacturing index, from 9.2 to 3.1, a negative reading (-0.2) on CPI for March and a drop-off in building permits, suggesting that the housing sector may not be quite as healthy as the pundits have been preaching.
Volume on the day was particularly heavy, a signal not lost on both bulls and bears; decliners outpaced advancing issues four-to-one; new lows, for the first time this year, superseded new highs, and by a rather large amount, another key metric.
After the bell, both American Express (AXP) and eBay (EBAY) missed gross revenue targets and just barely beat (each by a penny) the per share earnings forecasts.
Commodities continue to be beaten down as deflationary forces appear to be winning at the present time. Depending upon which side you butter your bread, that may be good or bad news.
There is good news in oil, which hit a multi-month low. If prices for crude continue to depress and remain so, it won't be long before driving Americans finally get a break at the gas pump.
Gold and silver continue to be on sale, though shortages in physical metal are widespread and premiums over spot prices are ranging anywhere from 16 to 35 percent. If that condition persists, forget the gold and silver ETFs, they will eventually break down as the backers are unable to deliver physical metal on contracts.
LATE BREAKING: Senate votes down gun control "compromise" measure. Long live the 2nd amendment!
and...
Europe's leading parliamentarian, Nigel Farage:
Dow 14,618.59, -138.19 (0.94%)
NASDAQ 3,204.67, -59.96 (1.84%)
S&P 500 1,552.01, -22.56 (1.43%)
NYSE Composite 8,955.47, -130.96 (1.44%)
NASDAQ Volume 1,889,783,125
NYSE Volume 4,579,846,000
Combined NYSE & NASDAQ Advance - Decline: 1382-5083
Combined NYSE & NASDAQ New highs - New lows: 87-178 (this could be huge!)
WTI crude oil: 86.68, -2.04
Gold: 1,373.10, -14.30
Silver: 23.24, -0.383
Monday, July 23, 2007
Dwindling Gains and Is OPEC Friendly?
After barely surpassing the magical 14,000 mark last week, the Dow Jones Industrials struggled to get close again on Money Monday, but close was all they could do. The blue chip index got as close as 27 points from the mark, but that was all, and the index closed some 30 points below that level.
Dow 13,943.42 +92.34; NASDAQ 2,690.58 +2.98; S&P 500 1,545.90 +11.80; NYSE Composite 10,121.58 +41.65
While the Dow and S&P were up handily, the NASDAQ didn't fare quite so well, rising just less than 3 points on the session.
Earnings were still the driver, with Merck (MRK) and Schering-Plough (SGP) getting off first thing in the morning, prior to the open.
Decliners actually led advancing issues by a narrow ratio of roughly 16-15, while new highs narrowly beat new lows, 327-286. These numbers are in line with our own expectations that this earnings season is not as robust as Wall Street might like. With a preliminary reading on 2nd quarter GDP due out on Friday, this week could determine direction for the remainder of the summer, and it's not looking particularly encouraging.
Who's the best friend of the American motorist? Would you believe OPEC President and UAE Energy Minister Mohammed al-Hamli? How about Hasan Qabazard?
Concerned over high prices, al-Hamli said that the world economy was still expanding, despite the exorbitant price for crude. Analysts saw his comment as indicative that OPEC may announce a supply increase at their September meeting.
Qabazard, head of OPEC's global research division, stated separately that a price of between $60 and $65 per barrel would be advantageous for both producers and consumers.
Light crude settled 90 cents lower at $74.89 a barrel on the New York Mercantile Exchange. Kudos to our friends in the Arabian world! They actually may be more concerned - and effective - about lowering gas prices than our very own Congress or President. Ya gotta have friends...
Meanwhile, the rally in gold and silver was cut short, with both falling marginally on Monday.
With techs showing some weakness today and after-hours and readings on existing and new home sales due Wednesday and Thursday, respectively, Tuesday may be a good time to exit positions if the market doesn't respond well by mid-day.
Tomorrow's earnings calendar is reasonably heavy, with reports due from Amazon.com (AMZN), AT&T (T), DuPont (DD), Eli Lilly (LLY), JetBlue Airways (JBLU), McDonald's (MCD), Occidental Petroleum (OXY), PepsiCo (PEP), UPS (UPS), United States Steel (X), and many, many others.
Dow 13,943.42 +92.34; NASDAQ 2,690.58 +2.98; S&P 500 1,545.90 +11.80; NYSE Composite 10,121.58 +41.65
While the Dow and S&P were up handily, the NASDAQ didn't fare quite so well, rising just less than 3 points on the session.
Earnings were still the driver, with Merck (MRK) and Schering-Plough (SGP) getting off first thing in the morning, prior to the open.
- Merck (MRK) said second-quarter net income rose to $1.68 billion, or 77 cents a share, from $1.5 billion, or 69 cents a share, a year earlier. Excluding restructuring and other charges, official earnings rose to 82 cents a share from 73 cents a share a year ago, exceeding the widely-held forecast of 72 cents per share. Shares of Merck soared on the news, up 3.31 to 52.33.
- Schering-Plough (SGP): Net income climbed to $517 million, or 34 cents per share, after preferred dividends for the quarter ended June 30 from $237 million, or 16 cents per share, a year ago. The stock lost 19 cents, closing the session at 31.30.
- For Dick Cheney lovers (and who doesn't love Dick?), Halliburton (HAL) reported net income of $1.53 billion, or $1.62 a share, up from $591 million, or 55 cents, a year earlier. The most recent quarter's results include a gain of $933 million relating to the KBR split. Analysts were only looking for 56 cents, so the stock made a new 52-week high during the trading session before closing up 1.17 at $37.74.
- After the close, American Express (AXP) reported second quarter net income for the quarter also totaled $1.1 billion, up 12 percent from $945 million a year ago, and 0.88 per share, up 16 percent from 0.76. Analysts were seeking 0.86 and their solid quarter should help stocks on Tuesday.
- Texas Instruments (TXN) reported revenue of $3.42 billion for the second quarter of 2007. Earnings per share (EPS) were $0.42, down from 0.47 in the year-ago period. The results were in line with expectations, but the results will do little to excite tech investors.
Decliners actually led advancing issues by a narrow ratio of roughly 16-15, while new highs narrowly beat new lows, 327-286. These numbers are in line with our own expectations that this earnings season is not as robust as Wall Street might like. With a preliminary reading on 2nd quarter GDP due out on Friday, this week could determine direction for the remainder of the summer, and it's not looking particularly encouraging.
Who's the best friend of the American motorist? Would you believe OPEC President and UAE Energy Minister Mohammed al-Hamli? How about Hasan Qabazard?
Concerned over high prices, al-Hamli said that the world economy was still expanding, despite the exorbitant price for crude. Analysts saw his comment as indicative that OPEC may announce a supply increase at their September meeting.
Qabazard, head of OPEC's global research division, stated separately that a price of between $60 and $65 per barrel would be advantageous for both producers and consumers.
Light crude settled 90 cents lower at $74.89 a barrel on the New York Mercantile Exchange. Kudos to our friends in the Arabian world! They actually may be more concerned - and effective - about lowering gas prices than our very own Congress or President. Ya gotta have friends...
Meanwhile, the rally in gold and silver was cut short, with both falling marginally on Monday.
With techs showing some weakness today and after-hours and readings on existing and new home sales due Wednesday and Thursday, respectively, Tuesday may be a good time to exit positions if the market doesn't respond well by mid-day.
Tomorrow's earnings calendar is reasonably heavy, with reports due from Amazon.com (AMZN), AT&T (T), DuPont (DD), Eli Lilly (LLY), JetBlue Airways (JBLU), McDonald's (MCD), Occidental Petroleum (OXY), PepsiCo (PEP), UPS (UPS), United States Steel (X), and many, many others.
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