S&P 500 sets record high, crypto market cap passes $2 trillion

NEW YORK - A string of surprisingly robust economic data boosted investor risk appetite on Monday, which sent the S&P 500 and the Dow to all-time closing highs and boosted cryptocurrency market cap over the $2 trillion hurdle.

Friday's employment report showed the economy added 916,000 jobs last month, suggesting stimulus and vaccine deployment have jump-started what could be the strongest yearly economic performance in decades.

Enthusiasm over the growing momentum of economic recovery was boosted on Monday with the Institute for Supply Management's nonmanufacturing PMI report, which showed the pandemic-battered services sector expanded at a record pace in March.

"You're seeing pretty broad-based strength and that's a positive for the market," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "That kind of breadth in the market, it tends to portend advances that have legs."

That broad-based strength carried over into cryptocurrencies.

Demand for digital cash continues to grow, with market cap hitting a record high of $2 trillion on Monday.

"It's a risk-on day, and an environment where people are willing to take on risk helps the crytocurrencies," Carlson added.

The Dow Jones Industrial Average rose 373.98 points, or 1.13%, to 33,527.19, the S&P 500 gained 58.04 points, or 1.44%, to 4,077.91 and the Nasdaq Composite added 225.49 points, or 1.67%, to 13,705.59.

The dollar dipped to a one-week low against a basket of currencies as U.S. stocks rallied, although low liquidity in many parts of the world off for Easter holidays may have exaggerated the move.

The dollar index fell 0.46%, with the euro up 0.4% to $1.1809.

The Japanese yen strengthened 0.48% versus the greenback at 110.20 per dollar, while Sterling was last trading at $1.3903, up 0.54% on the day.

European and Australian stock markets were closed in observance of Easter Monday, while China's stock market was dark in observance of Tomb Sweeping day.

MSCI's gauge of stocks across the globe gained 0.97%.

Emerging market stocks rose 0.06%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.03% higher, while Japan's Nikkei rose 0.79%.

US Treasury yields dipped as investors consolidated their positions, though the uptrend remains intact in the wake of Friday's payrolls report.

Benchmark 10-year notes last rose 3/32 in price to yield 1.7127%, from 1.72% late on Friday.

The 30-year bond last rose 7/32 in price to yield 2.3541%, from 2.37% late on Friday.

Oil prices fell as increasing OPEC+ supply and rising Iranian output, along with the threat of a new wave of COVID-19 infections, offset hopes for a demand rebound driven by economic revival.

US crude settled at $58.65 per barrel, down 4.6% on the day, while Brent shed 4.18% to end at $62.15 per barrel.

Gold prices edged lower as the safe-haven metal's luster was dimmed by rising global equity prices.

Spot gold dropped 0.1% to $1,727.98 an ounce. U.S. gold futures settled little changed at $1,728.80.

-reuters-

Asian stocks at 2-week high as Trump returns to White House

SINGAPORE - Asian stock markets advanced to a two-week high on Tuesday after U.S. President Donald Trump was discharged from hospital following treatment for COVID-19 and as prospects for a fresh U.S. stimulus package appeared to brighten.

Bonds and the dollar nursed losses amid the improving risk appetite, while oil extended gains.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt "real good", though one of his doctors cautioned that he may not be out of the woods yet. 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.71 percent to a two week-high, led by Hong Kong climbing 0.88 percent. Japan's Nikkei also added 0.41 percent.

Separately, U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and were preparing to talk again Tuesday, continuing their work towards a deal on coronavirus relief spending. 

As well as Trump's health, "there is also some market attention on whether the U.S. Congress will pass the extra stimulus bill," said Tai Hui, Chief Asia Market Strategist, J.P. Morgan Asset Management

"If we do see some form of stimulus coming through, I think the market will take it in a positive light as much of the important support from the previous round has expired," he said.

S&P 500 futures rose 0.08 percent after the best daily gain on the S&P 500 index in a month overnight. Oil held sharp overnight gains. 

Australia's ASX 200 was more subdued, up 0.17 percent, ahead of a central bank meeting at 0330 GMT and the government's budget later in the day.

China's markets remain closed for a holiday.

Asian markets on Monday unwound most of a Friday selloff in the wake of Trump's COVID-19 diagnosis. That improvement also caused Wall Street to rally sharply overnight with energy, tech and healthcare stocks leading. The Dow rose 1.7 percent, the S&P 500 1.8 percent and the Nasdaq 2.3 percent. 

Bond markets also joined in, with the safe-haven asset being sold - especially at the long end - in line with the optimistic mood. The yield on U.S. 30-year government bonds rose 10 basis points to a four month high of 1.5930 percent, before easing slightly. 

Benchmark 10-year yields hit a more than five-week high, and held just shy of that in Asian morning trading at 0.7634 percent.

"Improved near-term stimulus prospects and then potentially bigger deficits under a Biden presidency that has the benefit of clean sweep, are behind the yield gains here," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.

In currency markets, the dollar was under pressure on other majors apart from the yen, since higher yields can often draw flows from Japan. 

The yen hovered at 105.7 per dollar, while the risk-sensitive Australian and New Zealand dollars edged ahead, with the Aussie last up 0.13 percent at $0.7191.

Oil jumped more than 5 percent overnight and held there in Asia, supported by optimism surrounding Trump's health and a supply squeeze as a strike shut six Norwegian offshore oil and gas fields. 

The strike will cut Norway's total output capacity by just over 330,000 barrels of oil equivalent per day, or about 8% of total production, according to the Norwegian Oil and Gas Association (NOG). 

U.S. crude last stood at $39.27 up 0.13 percent and, Brent crude rose 0.2 percent to $41.37. Gold was steady at $1,912 an ounce.

-reuters-

Dow falls 8.7 percent as US stocks face another rout

NEW YORK - Wall Street stocks were deep in the red early Thursday, resuming after a 15-minute suspension as the economic pain from the coronavirus deepens and widens.

About 25 minutes into trading, the Dow Jones Industrial Average was at 21,505.07, down more than 2,000 points or 8.7 percent.

The broad-based S&P 500 tumbled 8.1 percent to 2,519.43, while the tech-rich Nasdaq Composite Index shed 7.9 percent to 7,323.31.

Trading was suspended after losses hit seven percent on the S&P 500, a benchmark that triggers circuit breakers halting transactions to manage crises.

Anxiety was elevated a day after the Dow entered a bear market as the spread of the virus further crimped economic activity. 

The NBA suspended its professional basketball season after a player tested positive, while Carnival announced that its Princess cruise line would suspend service for 60 days.

The European Central Bank on Thursday followed other major central banks with a flurry of measures to cushion the impact of the coronavirus, including increased bond purchases and cheap loans to banks, but surprised observers by leaving key interest rates unchanged.

Stock losses were widespread, but the impact on major airlines was especially acute after US President Donald Trump announced a 30-day travel ban on European travelers. 

Both Delta Air Lines and United Airlines tumbled more than 10 percent, adding to losses in a bruising period for the industry.

source: news.abs-cbn.com

As Wall Street rallies to fresh highs, investors are uneasy

Bad news is cheered. Good news makes investors nervous. Welcome to Wall Street.

The S&P 500 rose above 3,000 for the first time in its history Wednesday, with gains that continued early Thursday.

The most recent jump began after Federal Reserve chair, Jerome Powell, suggested the nation’s central bank was worried about the economy. Just days earlier, strong data on the job market had the opposite effect for stocks.

This counterintuitive reaction to the news is a phenomenon that’s explained by expectations for interest rates. The weakening outlook for the economy means, in all likelihood, borrowing costs are coming down — and in the right circumstances, this can be good for stocks.

If that all sounds familiar, there is good reason. Those same conditions were in place for much of 2012 to 2015, when the S&P 500 rose nearly 45 percent.

That climb earned itself a nickname, the TINA market. It stands for There Is No Alternative, which simply means that because central banks around the world were holding rates so low, investors had little choice but to buy American stocks.

Lower interest rates made returns on government bonds around the world less appealing and drove investors to seek returns in the stock market. At the same time, the US economy was performing better than much of the rest of the world, and US stocks were seen as less speculative bets than those in other countries. These are more or less the same circumstances investors face today.

Here’s a look at why the return of the TINA market could keep the bull market going, and what could be different in 2019.

The stock market is climbing even though there’s plenty to worry about

Any of the following could arguably derail the decade-long economic expansion and the rally: the seemingly never-ending trade war between China and the United States, a slowing global economy and simmering geopolitical tensions that could escalate into a full-blown conflict.

A recession would wreak havoc on corporate profits and would cause investors to flee riskier assets such as stocks.

But a downturn in the United States is not imminent — employment and economic data make that clear. Investors have become convinced that the Fed will act aggressively to lower rates to keep the expansion going. In the futures market that investors use to bet on the Fed’s decisions, nearly 90 percent expect at least two rate cuts by the end of 2019, and 53 percent anticipate at least three.

That signaled an abrupt U-turn for Fed policymakers, whose seeming determination to continue raising rates caused a market meltdown at the end of last year.

It’s good news that investors are not particularly optimistic

The decade-long bull market has racked up record highs and broken through one milestone after another. Each instance has been met with skepticism. And that does not seem to have changed this year.

The percentage of individual investors who say they expect American stocks to rise over the next six months has remained below its historical average for nine straight weeks, according to the American Association of Individual Investors’ weekly survey.

Bank of America Merrill Lynch called its June survey of fund managers its most bearish since the financial crisis.

The rates on long-term government bonds have declined this year, as well as the expectations of bond investors for inflation over the next five years. That indicates there is significant concern about the strength of the economy in the coming years.

“You are not seeing the party hats going on the floor of the New York Stock Exchange,” said JC O’Hara, the chief market technician at MKM Partners. “The average investor has a healthy degree of skepticism. They are very aware of the signs that an economic slowdown is taking place. But in a TINA market, where are they going to put their money?”

The lack of exuberance surrounding the rally may be a reason to think it can keep going. Investor sentiment is often viewed as a contrarian indicator: When optimism is high, it can indicate that investors are ignoring risks and plowing money into stocks on the belief they can only go up. Conversely, if investors become too pessimistic, it can indicate the market has hit a bottom.

Right now, investors are more neutral. That means a rate cut, along with better than expected corporate results and economic data, could inspire the skeptics to buy and keep the rally going.

Not everyone is convinced that there are more gains to be had

“The market continues to believe we have this ‘Goldilocks’ situation. That stocks can continue to make new highs and a lot of assets can all perform well together,” said Andrew Sheets, a strategist at Morgan Stanley. “But there are a number of reasons we believe that this is not 2013 or 2015 or even the late 1990s, another period when the Fed cut and the markets did quite well.”

For one, Wall Street’s expectations for earnings remain too high, Sheets said.

When companies reported first-quarter results, they seemed reluctant to lower the financial forecasts for the year ahead. But since then, trade talks aimed at reaching a deal between China and the United States, which many believed was imminent as recently as the end of April, have broken down, and the economic data has weakened. That means that when companies start reporting second-quarter results, they are likely to issue forecasts that reflect a more difficult 12 months ahead, Sheets said.

Also, a number of economic measures looked more stretched than they did five years ago when the labor market was still strengthening and consumer confidence was improving, Sheets said.

It’s true that the US economy is still adding jobs, but at a slower pace than it did last year or even earlier this year, and consumer confidence is high but not improving.

Even if this is the return of the TINA market, how long can the run continue?

Sheets is not expecting a sharp downturn. After stocks have gained 19 percent this year, he and his colleagues at Morgan Stanley, are skeptical the market can continue to march higher.

But in a market that has primarily been fueled by the prospect for interest rate cuts, there is good news for investors: When the Fed starts cutting rates, stocks typically rally for the year that follows.

“If you look at all the initial rate cuts since 1954, they have tended to push the markets higher over the next 12 months,” said Audrey Kaplan, the head of global equity strategy at the Wells Fargo Investment Institute.

According to her research, the S&P 500 gained about 14 percent on average the year after the Fed’s first cut. The gains have come in 13 out of the 16 instances.

Investors have spent much of the past decade counting on the Fed to keep the bull market going, and the central bank has delivered what investors hoped for. What investors have to grapple with now, is how long this will continue.

“This has been called the most unloved bull market in history, but it will be the most highly anticipated bear market whenever the next one comes around,” O’Hara said. “Whether that is today, tomorrow, a month from now or a year, that is the question right now.”


2019 New York Times News Service

source: news.abs-cbn.com

S&P 500 touches record high, equals longest-ever bull run

NEW YORK -- The benchmark S&P 500 touched a record high on Tuesday and equaled its longest-ever bull-market run, buoyed by strong earnings reports in the consumer sector and relative calm in the trade dispute between the United States and China.

The S&P 500 rose as much as 0.6 percent to a record intraday high of 2,873.23 points, topping its previous record high of 2,872.87 on Jan. 26, though it closed below both those marks.

Late in the day, stock market futures fell after US President Donald Trump's former personal lawyer, Michael Cohen, pleaded guilty to campaign finance violations and other charges, saying he made payments to influence the 2016 election at the direction of a candidate for federal office.

"The stock market loves the Trump agenda. Anything that's damaging to Donald Trump's agenda is not going to be good for the stock market," said Stephen Massoca, Senior Vice President at Wedbush Securities in San Francisco.

The index's bull-market run is now 3,452 days old and on Wednesday would become the longest such streak in history, at least for some market watchers.

Trade-sensitive industrial stocks rose for the fourth consecutive session as investors remained optimistic the United States and China could move closer to settling their trade dispute. The S&P 500 industrial index rose 0.8 percent.

The S&P consumer discretionary index climbed 0.9 percent as shares of off-price retailer TJX Companies Inc rose on strong results and Toll Brothers Inc's encouraging quarterly report boosted shares of homebuilders.

"We've got good momentum, which is fundamentally justified by the strong economy and better earnings," said Kevin Caron, senior portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey. "Investors still seem relatively optimistic about growth, and you're seeing that expressed in the market today."

The Dow Jones Industrial Average rose 63.6 points, or 0.25 percent, to 25,822.29, the S&P 500 gained 5.91 points, or 0.21 percent, to 2,862.96 and the Nasdaq Composite added 38.17 points, or 0.49 percent, to 7,859.17.

The small-cap Russell 2000 index, which is less affected by global tariff disputes than its large-cap peers, ended the session up 1.1 percent at a record closing high.

The S&P 500 energy index rose 0.5 percent and the S&P 500 materials index gained 0.4 percent, in tandem with higher prices for oil and metals.

Helping commodity prices was a drop in the dollar after Trump said he was "not thrilled" with the Federal Reserve for raising rates and that the central bank should do more to help him boost the economy.

The criticism came ahead of the release of the Fed's minutes of its August policy meeting on Wednesday, which is expected to reaffirm its confidence in the US economy and its commitment to future rate hikes.

Toll Brothers shares jumped 13.8 percent after the homebuilder reported better-than-expected quarterly results. Shares of its industry peers PulteGroup, Lennar and D.R. Horton also rose between 3.8 percent and 5.5 percent.

TJX shares climbed 4.7 percent, ending the session at a record closing high, after the retailer topped quarterly comparable-store sales estimates and raised its full-year earnings forecast.

But shares of Coty Inc tumbled 7.1 percent after the beauty products maker missed sales estimates for the first time in six quarters.

Advancing issues outnumbered declining ones on the NYSE by a 1.88-to-1 ratio; on Nasdaq, a 2.32-to-1 ratio favored advancers.

The S&P 500 posted 43 new 52-week highs and no new lows; the Nasdaq Composite recorded 164 new highs and 32 new lows.

Volume on US exchanges was 5.86 billion shares, compared with the 6.49 billion average over the last 20 trading days.

source: news.abs-cbn.com

S&P 500 posts highest close since February

NEW YORK -- The S&P 500 rose on Tuesday to post its highest closing level since Feb. 1, the day before the market began a sharp extended selloff, as strong results from PepsiCo boosted optimism about the earnings season.

The consumer staples index climbed 1.3 percent and provided the biggest lift to the S&P 500, driven by PepsiCo, which gained 4.8 percent, while Procter & Gamble rose 2.5 percent and Coca-Cola was up 1.3 percent.

Recent upbeat news on the economy as well as earnings have helped to offset worries about escalating trade tensions between the United States and China. The two countries slapped tit-for-tat tariffs on $34 billion of each other's goods on Friday.

Concerns over trade resurfaced after Tuesday's close, with S&P futures falling late after a Trump administration official said the White House was likely to announce a list of $200 billion in tariffs on Chinese goods as early as Tuesday night.

"It's not an inconsequential move," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco, of the decline in futures. "This trade war escalating is not good news, and the market won't see it as good news."

S&P 500 e-mini futures ended the session down 0.1 percent and were off 0.8 percent after trading resumed for the overnight session.

During the regular session, the Dow Jones Industrial Average rose 143.07 points, or 0.58 percent, to end at 24,919.66, while the Nasdaq Composite added 3.00 points, or 0.04 percent, to 7,759.20. The S&P 500 gained 9.67 points, or 0.35 percent, to 2,793.84.

The S&P 500 index has risen about 3 percent in the last four sessions. It is now up 4.5 percent since the end of 2017 and is less than 3 percent from its Jan. 26 record high. Worries over rising bond yields and potentially firming inflation drove the early February selloff, which confirmed a correction for the market.

Earnings are expected to become key for investors in the coming weeks as the US reporting period kicks into high gear. JPMorgan Chase, Wells Fargo and Citigroup are scheduled to report results on Friday. Their shares dipped on Tuesday after leading market gains on Monday.

PepsiCo's shares surged after the company's quarterly results topped estimates on strong sales of snacks. The company also reaffirmed its full-year forecast amid signs of a gradual recovery in its soda business.

Overall, S&P 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to Thomson Reuters data.

Also boosting the S&P on Tuesday, utilities and telecom indexes rose about 1 percent each, bouncing back from Monday's losses.

Higher oil prices lifted energy shares. The S&P energy index rose 0.7 percent as crude oil prices gained on growing supply disruptions in Norway and Libya, but gains were pared after the United States said it would consider requests for waivers from Iranian oil sanctions.

Shares of Exxon and Chevron were up around 1 percent each.

Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.53-to-1 ratio favored decliners.

The S&P 500 posted 30 new 52-week highs and no new lows; the Nasdaq Composite recorded 104 new highs and 26 new lows.

Trading volume was among the lightest of the year, with about 5.8 billion shares changing hands on US exchanges. That compares with the 7 billion daily average for the past 20 trading days, according to Thomson Reuters data.

source: news.abs-cbn.com

S&P 500, Nasdaq edge to records but Dow dips

NEW YORK - The S&P 500 and Nasdaq ended at records for the fifth straight session Monday, but the Dow dipped and the 2018 global stocks rally showed signs of petering momentum.

Global stocks were on a tear last week, with Wall Street and key international bourses closing at multi-year or all-time highs amid improving global economic data and optimism about corporate earnings after President Donald Trump signed a big tax cut into law last month.

But the lofty state of the market has started to raise questions about equity valuations, heading into the quarterly earnings season. Gains Monday were generally more modest than last week, and some key markets ended lower.

JPMorgan Chase and Wells Fargo kick off the earnings period for big US corporations on Friday.

"The guidance will be more important than ever," said Art Hogan, chief market strategist at Wunderlich Securities, referring to the corporate statements on expected profit.

Investors so far have not shown much concern about the one-term hit announced by many large companies as they repatriate foreign earnings to the United States, as a result of the recent tax reform.

But sentiment could shift throughout the course of the earnings period, analysts said.

"The question is how are people going to interpret companies that give lower earnings guidance to pay for their taxes," said Phil Davis of PSW Investments. "It is short-term, but you know investors are not very patient."

In the US, the S&P 500 and Nasdaq edged to fresh records, while the Dow fell for the first time in 2018.

Earlier, Asian equities mostly advanced, with Hong Kong chalking up a blistering tenth day of gains.

The positivity spilled over into Europe with London scaling another record pinnacle at 7,733.39 points, before turning lower amid a UK government reshuffle.

Frankfurt and Paris maintained momentum, with equity markets rising modestly as the weaker euro against the dollar boosted exporters.

Frankfurt sentiment was also bolstered by German Chancellor Angela Merkel opening a fresh round of negotiations with the aim of forming a government after last year's inconclusive general election.

"Equities are off their best levels but maintain a northerly bearing," said Mike van Dulken at Accendo Markets.

KEY FIGURES AROUND 2200 GMT (6 a.m. Tuesday in Manila) 

New York - DOW: DOWN 0.1 percent at 25,283.00 (close)

New York - S&P 500: UP 0.2 percent at 2,747.71 (close)

New York - Nasdaq: UP 0.3 percent at 7,157.39 (close)

London - FTSE 100: DOWN 0.4 percent at 7,696.51 (close)

Frankfurt - DAX 30: UP 0.4 percent at 13,367.78 (close)

Paris - CAC 40: UP 0.3 percent at 5,487.42 (close)

EURO STOXX 50: UP 0.2 percent at 3,616.45

Hong Kong - Hang Seng: UP 0.3 percent at 30,899.53 (close)

Shanghai - Composite: UP 0.5 percent at 3,409.48 (close)

Tokyo - Nikkei 225: Closed for public holiday

Euro/dollar: DOWN at $1.1967 from $1.2030 late on Friday

Pound/dollar: UP at $1.3567 from $1.3564

Dollar/yen: DOWN 113.08 yen from 113.10 yen

Oil - Brent North Sea: UP 16 cents at $67.78 per barrel

Oil - West Texas Intermediate: UP 29 cents at $61.73 per barrel

source: news.abs-cbn.com

S&P 500 chalks up record high as fear gives way

The S&P 500 surged over 1 percent to a record high close on Monday as tropical storm Irma caused less damage than expected in Florida, and after North Korea did not test-fire missiles over the weekend, which some had feared.

All 11 major S&P 500 sectors rose, led by financial stocks, with insurers advancing as Irma, once ranked as one of the most powerful hurricane recorded in the Atlantic, lost power.

Irma caused severe flooding in many Florida cities and left more than 6 million homes and businesses without power, but damage appeared to be less than expected. That relieved investors, especially in the wake of Hurricane Harvey, whose devastation is estimated to dent third-quarter economic growth.

Geopolitical tensions eased after North Korea did not mark its founding day on Saturday with another launch of a long-range missile, which the United States and its allies had been bracing for.

"It is a risk back on situation, people are going back into the market," said Neil Massa, senior equity trader at Manulife Asset Management in Boston. "For now, it is a relief rally for things on both ends - geopolitical and weather wise."

The Dow Jones Industrial Average rose 1.19 percent to end at 22,057.37 points in its largest one-day gain since February.

The S&P 500 gained 1.08 percent to 2,488.11 and the Nasdaq Composite added 1.13 percent to 6,432.26.

The CBOE volatility index, a widely-followed measure of market anxiety, fell 1.36 points to 10.76.

The S&P 500 financial index jumped 1.74 percent, with JPMorgan up 2.18 percent and insurer Travelers up 2.34 percent.

With investors less worried about Irma's impact, insurers Universal Insurance Holdings and HCI Group surged more than 12 percent, while Heritage Insurance soared 21 percent.

So far in 2017, the S&P 500 has risen 10 percent. It is trading near 17.6 times expected earnings, compared to its 10-year average of 14.3, according to Thomson Reuters Datastream.

"Valuations don't bother me terribly," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "I don't think we're at a level where valuations themselves are going to cause a correction."

Apple rose 1.81 percent a day ahead of the expected launch of a new iPhone, providing the biggest boost to the Nasdaq and S&P 500.

Tesla jumped 5.91 percent on news that China was studying when to ban the production and sale of cars using traditional fuels.

Teva jumped 19 percent after the generic drugmaker named a new chief executive.

Advancing issues outnumbered declining ones on the NYSE by a 3.73-to-1 ratio; on Nasdaq, a 2.56-to-1 ratio favored advancers.

About 6 billion shares changed hands in US exchanges, above the 5.8 billion daily average over the last 20 sessions.

source: news.abs-cbn.com

Wall St opens higher as oil prices, defense stocks rise

Wall Street gained in early trading on Monday, helped by higher oil prices and as defense stocks rose after a $110 billion arms deal between the United States and Saudi Arabia.

Oil prices were up about 0.6 percent, bolstered by confidence that top exporters will this week agree to extend supply curbs, with suggestions that the cuts could even be deepened.

President Donald Trump visited Saudi Arabia over the weekend, on his first foreign trip since taking office and one that the White House hopes will shift the focus away from domestic controversies such as his firing of a former FBI head last week and reports of his administration's links to Russia.

The central achievement of Trump's visit was nearly $110 billion in deals sealed on Saturday in which Riyadh will buy U.S. arms to help it counter Iran, with options running as high as $350 billion over 10 years.

Shares of defense firms such as General Dynamics, Raytheon, Boeing and Lockheed Martin were up between 0.6 percent and 2.2 percent in early trading.

All the 11 S&P sectors were higher, led by the industrials index's 0.68 percent rise. Boeing was giving the biggest boost to the Dow Jones Industrial Average.

"While the headlines of the Trump visit are overshadowing the geopolitical and domestic political concerns, oil prices are moving higher ... on OPEC expectations," Peter Cardillo, chief market economist at First Standard Financial wrote in a note.

At 9:35 a.m. ET (1335 GMT) the Dow was up 76.07 points, or 0.37 percent, at 20,880.91, the S&P 500 was up 7.98 points, or 0.33 percent, at 2,389.71 and the Nasdaq Composite was up 25.32 points, or 0.42 percent, at 6,109.02.

Wall Street ended lower last week on concerns about the political storm surrounding Trump's presidency, with investors fretting if Trump will be able to fulfill campaign promises for fiscal stimulus and tax reform.

Many investors saw the policy promises as a key reason for the rally in U.S. stocks since his election win in November.

While the political developments in Washington continue to play on investors' minds, sentiment has been bolstered by the strong quarterly earnings season.

Corporate reports show that, overall, earnings for S&P 500 companies increased 15.1 percent in the first quarter, their best showing since 2011, according to Thomson Reuters I/B/E/S.

Amgen fell 2.3 percent to $152.85 after the company and UCB SA said they no longer expect their experimental osteoporosis drug to win U.S. approval this year.

Ford was up 1.7 percent at $11.05 after the automaker said it would replace its chief executive in response to investors' growing unease over its stock performance and prospects.

Advancing issues outnumbered decliners on the NYSE by 1,905 to 620. On the Nasdaq, 1,528 issues rose and 658 fell.

The S&P 500 index showed 13 new 52-week highs and one new low, while the Nasdaq recorded 37 new highs and seven new lows.

(Reporting by Tanya Agrawal; Editing by Savio D'Souza)


source: news.abs-cbn.com

Wall St opens higher after govt shutdown averted

Wall Street opened higher on Monday, led by technology and financial stocks, after U.S. Congress negotiators averted a government shutdown later this week by hammering out a federal funding deal late on Sunday.

The House of Representatives and Senate must approve the deal before the end of Friday, as must President Donald Trump, to keep the government funded through the end of Sept. 30.

"We have some renewed optimism that the market strength will continue helped by strong earnings and as a government shutdown was averted," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

"We're also coming off a weak trading session on Friday, and investors are keeping an eye on the jobs report later this week."

At 9:35 a.m. ET (1335 GMT) the Dow Jones Industrial Average was up 13.15 points, or 0.06 percent, at 20,953.66.

The S&P 500 was up 4.3 points, or 0.18 percent, at 2,388.5 and the Nasdaq Composite was up 21.15 points, or 0.35 percent, at 6,068.76.

Nine of the 11 major S&P 500 sectors were higher, led by identical gains of 0.35 percent in the financial and technology indexes.

Apple's 1.1 percent rise boosted all three indexes.

Trading volume is expected to be light, with many markets in Asia and Europe closed for Labor Day, but will pick up through the week as major earnings reports and economic data pour in.

A data-heavy week will culminate with the monthly jobs report on Friday. The Federal Reserve's two-day meeting that starts on Tuesday could shed policymakers' insights into weak first-quarter economic growth.

U.S. consumer spending was unchanged in March for a second straight month and the overall monthly inflation rate fell for the first time in a year. But, inflation-adjusted consumer spending increased after two straight months of decline.

Stocks edged lower on Friday due to the weak GDP data, but Wall Street's major indexes ended with gains for April, helped by strong quarterly earnings.

Overall, profit at S&P 500 companies are estimated to have risen 13.6 percent in the first quarter, the most since 2011, according to Thomson Reuters I/B/E/S.

Shares of Caterpillar were up 0.66 percent at $102.92. Barron's said the stock could rise another 20 percent over the next year, helped by Trump's policies.

Dish Network fell 2.22 percent to $63.01 after the satellite TV provider's quarterly revenue missed expectations.

Tribune Media jumped 8.9 percent to $39.82 after Reuters reported Twenty-First Century Fox is in talks with Blackstone to buy the television station operator. Fox shares were down 0.13 percent at $30.50.

Advancing issues outnumbered decliners on the NYSE by 1,663 to 857. On the Nasdaq, 1,447 issues rose and 747 fell.

The S&P 500 index showed 17 new 52-week highs and three new lows, while the Nasdaq recorded 40 new highs and 14 new lows. (Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D'Souza)

source: news.abs-cbn.com

Wall St surges, Nasdaq hits record on French vote result

The Nasdaq hit a record high on Monday, with other indexes also rallying, as investors breathed a sigh of relief after Centrist candidate and market favorite Emmanuel Macron won the first round of the French election.

Polls showed pro-EU Macron is expected to beat right-wing rival Marine Le Pen in a deciding vote on May 7, quelling some fears of a breakup of the Eurozone after Britain's shock exit vote last year.

"The markets are in a strong rebound as the expectations of the first round of the French elections results were pleasing," Peter Cardillo, chief market economist at First Standard Financial wrote in a note.

The rally on Wall Street was broad-based, with all of the 11 major S&P 500 sectors trading higher, led by a 2 percent surge in the financial index as big U.S. banks rose.

The three major indexes notched gains of more than 1 percent.

At 9:34 a.m. ET (1334 GMT), the Dow Jones Industrial Average was up 209.6 points, or 1.02 percent, at 20,757.36, the S&P 500 was up 25.3 points, or 1.1 percent, at 2,373.99 and the Nasdaq Composite was up 67.49 points, or 1.14 percent, at 5,978.02.

U.S. investors are also gearing up for the busiest earnings week in at least a decade, with over 190 S&P 500 members, including heavyweights Alphabet and Microsoft due to report results.

Overall profit for S&P 500 companies is estimated to have risen 11.2 percent in the first quarter, compared with the 10.1 percent forecast at the start of the earnings season, according to Thomson Reuters I/B/E/S.

Prices of safe-haven gold dropped nearly 1 percent, while the CBOE Volatility index tumbled nearly 19 percent.

Hasbro surged 6.3 percent after the toymaker reported a better-than-expected quarterly profit.

Medical device maker C R Bard jumped more than 19 percent to $302 after U.S. medical equipment supplier Becton Dickinson said it would buy Bard for $24 billion.

Advancing issues outnumbered decliners on the NYSE by 2,298 to 367. On the Nasdaq, 2,054 issues rose and 359 fell.

The S&P 500 index showed 62 new 52-week highs and no new lows, while the Nasdaq recorded 123 new highs and six new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

source: news.abs-cbn.com