Market Seesaws: Despair Makes Way for Hope
Stocks on Wall Street ended slightly changed on Tuesday, yesterday’s trading dominated by the reflex reactions to the intrigue in the White House which sent investors’ emotions up and down like a rollercoaster. The market went from despair – to hope – indexes seesawing after new concerns were transplanted by optimism about the fruition of Trump’s economic agenda.
Stocks took a sharp downturn after the first trading hour, after emails were revealed from the account of Trump’s firstborn son, which made it evidently clear that Russia was backing his father’s 2016 election campaign. The emails relate to a Russian state attorney who offered the Trump campaign incriminatory information about Democratic opponent, Hillary Clinton.
The market succeeded in recovering fully later in the day’s trading after the Republic Senate majority leader, Mitch McConnell, announced that the recess would be postponed by two weeks to allow more time for working on legislation, a fact that signals progress in executing the Republican agenda.
The deferment of the recess instilled hope in that it communicated commitment on the part of the party in power to enact the changes the market wants to see. The lack of certainty about whether the Trump administration will succeed in pushing through its agenda this year has weighed on market activity of late, especially after the repeated and aborted attempts at pushing through replacement health care legislation.
Daily Summary: The Dow Jones ended unchanged. The S&P 500 ended lightly off by 0.08%, the NASDAQ tacking on 0.27%.
Investors are sitting on the sidelines, waiting to see what will prompt the next market move. Today’s bi-annual testimony of Fed Chair, Janet Yellen, is likely to shed light on the bank’s stance on monetary tightening. Investors are also keeping a watchful eye on the Q2 earnings season which is already underway, but more specifically, on the financial reports from large banks this coming Friday, which will include J.P. Morgan (JPM), Citigroup (C), and Wells Fargo (WFC).
SNAP Inc. (SNAP) continued falling, having nosedived 45% since the latest high achieved shortly after its IPO in March of this year. The stock fell yesterday by 8.9% after its lead underwriter, Morgan Stanley, lowered its price target, voicing concern about the social media company’s ability to hold its own against its competitor, Instagram. For the first time ever, the stock closed on Monday beneath its issue price of $17.
Trading volumes were thin, about 5.9 billion shares trading hands on U.S. exchanges, compared to the 6.9 billion average over the last 20 trading days.
Wednesday: Fed Chairwoman, Janet Yellen, is expected to address the House Financial Services Committee today and the Senate Banking Committee tomorrow. She is expected to stress that the Fed stands to hike rates again this year and that it will start shaving its huge balance sheet which has mushroomed to $4.5 trillion by not repurchasing the maturing bonds it had invested in as part of its QE initiative.
The Economic Diary is rather slim today, save Yellen’s speech. Investors will be awaiting crude inventory figures which will be released at 10:30; last week featured a sharp and substantial downtick in inventories.
Two of the companies that will be reporting before opening include OZRK and FAST.
Wednesday’s Hot Stocks: FAST, OZRK, HCSG, NRG
IPOs: CODX – a small IPO
Have a great trading day!
|Tuesday||6:00||NFIB Small Business Optimism Index||–||Medium|
|Wednesday||8:30||Janet Yellen Speaks||-0.5%||Medium|
|Wednesday||10:00||Janet Yellen Testifies||–||Medium|
|Wednesday||10:30||Crude Oil Inventories||185K||Low|
|Friday||8:30||Consumer Price Index||56.6||High|
|HELE||Helen of Troy Limited||AM||Monday|
|OZRK||Bank of the Ozarks, Inc.||AM||Wednesday|
|DAL||Delta Air Lines, Inc.||AM||Thursday|
|PNC||The PNC Financial Services Group, Inc.||AM||Friday|
|WFC||Wells Fargo & Company||AM||Friday|
|JPM||JPMorgan Chase & Co.||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – YUMC
|Sector||Services | Restaurants|