Market Rises Despite Apple!
The leading Wall Street indexes ended at new historic highs on Tuesday, the financial sector (XLF) taking the lead. At the same time, the gains were checked by a decline in the stock of Apple (AAPL), after it revealed its new iPhone series.
After closing, the stock of the retail department store chain, JWN, soared 8.8% after reporting that it had chosen the private equity investment firm, Leonard Green & Partners, to help take itself private.
Daily Summary: The Dow Jones rose 0.28%. The S&P 500 tacked on 0.34%, the NASDAQ rising 0.34%.
The concerns revolving Hurricane Irma have been tapering after it was downgraded to a tropical storm. At the same time, investors shrugged off the caustic remark by President Trump that the latest sanctions imposed by the U.N. on North Korea are “not a big deal” and not close to that which is needed to fend off the country’s nuclear program.
Apple (AAPL) capped off a particularly volatile trading day down 0.4% at the $160.86 level after releasing its latest iPhone in a highly publicized event which was followed worldwide. Investors were disappointed about the November 3 release date, which is far later than they had hoped for.
About 5.91 billion shares changed hands on U.S. exchanges, above the 5.79 billion average over the last 20 trading days.
Wednesday: Stocks closed at an all-time high on Tuesday, enjoying a tailwind that could push them even higher. Buying leads to more buying! That’s momentum. Every breakup leads to a gentle retreat, followed by another breakup. The current breakup got another push on Tuesday after Treasury Secretary, Steven Mnuchin, said that the administration’s goal is to enact tax reform before year’s end.
All-in-all, one could say that the market digested difficult news in an exceptional way over the last few weeks. September’s negative seasonality is yet to prove itself this year and it’s difficult now to see what could cause the market to pause – and then fall. At the same time, it’s important to understand that the market has a way of its own and that it could embark on a price correction at any moment, even in the absence of a clear catalyst. A lot of money was injected into the market after Labor Day, which means that there could be more momentum pushing the market higher before it encounters its next obstacle which could come in the form of the earnings season which kicks off in the second week of October. We wouldn’t be surprised if we saw weakness going into the end of the month.
Investors today will be awaiting the Producer Price Index at 8:30 N.Y. time and crude reserve figures at 10:30. The figures that will be released today are likely to give a good insight into the effect Hurricane Harvey had on the refinery industry.
Wednesday’s Hot Stocks: JWN, M, KSS, FL, GPS
Have a great trading day!
|Tuesday||6:00||NFIB Small Business Optimism Index||104.8||Medium|
|Thursday||8:30||Consumer Price Index||0.4 %||High|
|Thursday||8:30||Jobless Claims||300 K||Medium|
|Friday||8:30||Retail Sales||0.1 %||Medium|
|Friday||8:30||Empire State Mfg Survey||19.0||Medium|
|Friday||9:15||Industrial Production||0.1 %||Medium|
|Friday||10:00||Business Inventories||0.2 %||Medium|
|UNFI||United Natural Foods, Inc.||PM||Wednesday|
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