Saturday, July 15, 2017

Dow, S&P 500 end week at records; dollar tumbles

NEW YORK - Wall Street stocks finished at fresh records Friday following solid bank earnings, while the dollar retreated after lackluster US data raised questions about additional Federal Reserve rate hikes.

The Dow and S&P 500 ended at fresh records in anticipation that teh positive bank results foreshadow a generally strong earnings period. The records, the third in a row for the Dow, capped a strong week for US stocks that some analysts attributed to commentary from Fed Chief Janet Yellen that was more dovish than expected.

Equity markets elsewhere were mixed, with London and Frankfurt down, Tokyo up and Paris flat.

JPMorgan Chase, Citigroup and Wells Fargo all reported higher earnings than expected by Wall Street analysts, showing the benefits of higher US interest rates, despite a drop in revenue from trading divisions.

However, share prices for all three banks fell, with JPMorgan losing 0.9 percent, Citigroup 0.4 percent and Wells Fargo 1.1 percent.

"The fact that the banks started off the earnings season with very good earnings will bode well," said Bill Lynch, director of investment at Hinsdale Associates.

"Most strategists expect the season to be a good one with earnings going up at least six percent, maybe as much as nine percent."

On foreign exchanges, the dollar struggled after disappointing US inflation and retail sales data for June, falling against the pound and the euro.

"The morning's data, particularly the cooler than expected CPI figures, seem to justify Fed Chair Janet Yellen's more cautious tone this week in her Congressional testimony," said Omer Esiner, analyst at Commonwealth Foreign Exchange.

"The lack of meaningful evidence of a strong rebound in the economy in the second half of this year could continue to keep the dollar pressured."

Oil prices rose for the fifth straight day amid signs of greater balance between supply and demand.


New York - DOW: UP 0.4 percent at 21,637.74 (close)
New York - S&P 500: UP 0.5 percent at 2,459.27 (close)
New York - Nasdaq: UP 0.6 percent at 6,312.47 (close)
London - FTSE 100: DOWN 0.5 percent at 7,378.39 (close)
Frankfurt - DAX 30: DOWN 0.1 percent at 12,631.72 (close)
Paris - CAC 40: FLAT at 5,235.31 (close)
Tokyo - Nikkei 225: UP 0.1 percent at 20,118.86 (close)
Hong Kong - Hang Seng: UP 0.2 percent at 26,389.23 (close)
Shanghai - Composite: UP 0.1 percent at 3,222.42 (close)
Euro/dollar: UP at $1.1470 from $1.1400
Pound/dollar: UP at $1.3111 from $1.2942
Dollar/yen: UP at 112.50 yen from 112.34 yen
Oil - Brent North Sea: UP 49 cents at $48.91 per barrel
Oil - West Texas Intermediate: UP 46 cents at $46.54 per barrel