Skip to main content

Dow, S&P 500, Nasdaq @ NEW RECORDS

Wall Street stocks jumped to fresh records Wednesday on higher oil prices, better-than- expected housing data and mostly solid earnings reports. All three major US stock indices finished at new records, with the Dow Jones Industrial Average rising 0.3 percent to 21,640.75, edging past a prior record set earlier this month by three points. The S&P 500 gained 0.5 percent to end at 2,473.83, while the tech-rich Nasdaq advanced 0.6 percent to 6,385.04. It was the second straight day of new records for those indexes. Investors shrugged off worries about Washington, where President Donald Trump's agenda has languished amid opposition to the health care reform. Trump on Wednesday urged Republican Senators to revive the bill, despite the fact it failed to garner enough support within his own party. But earnings growth among companies in the S&P 500 has thus far been "much better" than expected, said Art Hogan, chief market strategist at Wunderlich Securities. "That is helping the stock market and is the focus this week," Hogan said. Of the companies reporting Wednesday, Morgan Stanley was a standout, rising 3.3 percent after reporting an 11.4 percent rise in second-quarter profits to USD 1.6 billion. Other factors that helped boost stocks included better-than-expected housing data and a bullish US oil inventory report that supported oil prices and boosted shares of petroleum-linked companies. Apache rose 5.0 percent, Halliburton 3.6 percent and ConocoPhillips 1.4 percent. But IBM sank 4.2 percent after suffering its 21st straight quarter of declining revenue as second-quarter net income dipped seven percent to USD 2.3 billion. United Continental plummeted 5.9 percent despite scoring a 39 percent rise in second-quarter profit to $818 million. Analysts cited disappointment with aspects of its third-quarter forecast. Vertex Pharmaceuticals surged 20.9 percent after releasing positive clinical data for its medical treatment regimes for cystic fibrosis. Scripps Networks Interactive, owner of the Food Network, climbed 14.7 percent on reports it held talks with Discovery Communications and Viacom on a potential takeover. Discovery gained 4.3 percent and Viacom won 2.6 percent.


Popular posts from this blog


Telecom stocks today surged up to 8 per cent after the recent increase in Reliance Jio tariffs, which is largely seen as positive for the sector. Shares of Bharti Airtel jumped 4.99 per cent to close at Rs 497.50 on BSE. Bharti Airtel was the biggest gainer among the 30-share index components. The scrip of Idea Cellular soared 7.74 per cent to end at Rs 98.15 and Reliance Communications zoomed 7.60 per cent to Rs 17.70. Reliance Jio made its service dearer by about 15 per cent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day. The company restructured its various schemes by reducing their validity period. The recent increase in Reliance Jio tariffs will increase its average revenue per user by up to 20 per cent and is a positive for the telecom sector, which is seeing a rapid consolidation, says a Philip Capital report. Established telecom sector players have seen huge reduction in their margins. Idea Cellular and Reli…


Sensex drops 244 pts
A late sell-off in auto, banking and IT shares pulled back the benchmark BSE Sensex from record high level to close down by 244 points, its biggest single loss in past one month, on the first trading day of 2018. Investors preferred to book profits at record highs amid concerns over fiscal slippages and rising crude oil prices and absence of cues from global markets which were closed for the New Year holiday. The benchmark Sensex touched a low of 33,766.15 before settling lower by 244.08 points, or 0.72 per cent, at 33,812.75. This is the biggest single-day fall since December 1 when the index had lost 316.41. The 30-share index had closed at an all-time high of 34,056.83 in the last session of 2017 on Friday. Also, the 50-share Nifty cracked below the 10,500-mark to hit a low of 10,423.10 before settling 95.15 points, or 0.90 per cent down at 10,435.55. Stocks opened on a weak note and remained range-bound for the better part of the day but an intense sell-off in…


UBS Cautious Note

Projecting zero returns from the Nifty, Swiss brokerage UBS has projected a 10 per cent cut in its index target at 10,500 for calendar 2018, even as it remains positive over the long-term. "Top-down, we forecast Nifty earnings growth will recover from 9 per cent in fiscal 2018 to 13 per cent in 2019, but driven largely by financials," the brokerage said in a report. "However, earnings growth is likely to disappoint against consensus forecast of 22 per cent growth for fiscal 2019, implying a 10 per cent cut," it added. Accordingly, the brokerage estimates "no returns from the Nifty in 2018" and has set the index target at 10,500 for this December. The report noted that a sharp earnings recovery, with continued robust macro stability appears priced in by the markets. "A sharp earnings recovery appears priced in. The markets are already close to our 2018 target, given optimistic fiscal 2019 consensus earnings expectations, which build …