Dow surges on positive earnings results and NASDAQ hits all-time high
Published 21-APR-2017 09:40 A.M.
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Bullish market sentiment returned in the US overnight as the Dow surged 0.8% or 174 points in response to strong earnings results and positive economic data on the jobs front.
Another factor supporting the rally was commentary from Treasury Secretary Stephen Mnuchin regarding the planned tax reforms remaining in play rather than being impacted by the failure of the health care bill.
American Express’s earnings result was the best received as the stock surged 5.9%. Elsewhere in the financial sector there were also good performances from Goldman Sachs Group (+1.8%), Visa Inc (+1.6%) and JP Morgan Chase (+1.3%).
The tech heavy NASDAQ also performed well, surging 0.9% to close at 5916 points, its highest close in history. This record close also represents a stunning uptick of approximately 36% compared with its 2016 low of circa 4350 points.
European markets yet to feel impact of terror attack in Paris
European markets were mixed with the FTSE 100 taking most of the session to edge its way to a narrow four point gain, closing at 7118 points.
Across the channel it was a different story as the Paris CAC 40 surged 74 points or 1.5% to close at 5077 points.
This also represented a strong year-on-year performance (1100 points in 10 months) and came on the back of strong earnings results which tended to overshadow mixed political commentary regarding the imminent election.
As can be seen below the index is now only circa 70% shy of its 12 month high of 5142 points.
However, with an alleged terror attack in which at least one police officer was killed occurring at the Champs-Elysees after markets closed, volatility could re-emerge when trading recommences tonight.
The DAX tracked sideways for most of the session, finishing up 0.1% at 12,027 points.
Gold was relatively flat as it continues to move in a tight band between US$1280 per ounce and at US$1285 per ounce.
Iron ore rose slightly to US$65.36 per tonne.
Base metals stage recovery with zinc gaining more than 3%
There were some good gains on the base metals front with zinc leading the way as it rallied more than 3% to US$1.19 per pound, having now recovered all of the steep fall that occurred the previous week when it hit a low of US$1.12 per pound.
Nickel also made good ground as it gained 1.6% to close at US$4.28 per pound.
Copper delivered a similar proportionate gain, closing at US$2.53 per pound.
The only metal to lose ground was lead but this was only a minor slip as it closed just below the US$0.98 per pound mark.
The Australian dollar is fetching US$0.752.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.