Fearless girl watching Wall Street at night by Tim Pruss via Istock
The S&P 500 index ($ SPX) (SPY) Friday closed down -0.01%, the Dow Jones Industrials ($ DOWI) (DIA) index closed by -0.32%and the NASDAQ 100 ($ IUXX) ($) index closed by -0.05%. September e -minini s & p Futures (ESU25) fell by -0.08% and September e -min Nasdaq Futures (NQU25) fell by -0.10%.
Actions abandoned an early advance on Friday and slightly paid the results of mixed income and the weakness of health insurance suppliers. Netflix has dropped by more than 5% and weighed on technological actions after the company has planned annual operating rooms below consensus.
In addition, health insurance actions withdrew after Humana lost legal action to reverse the cuts in her Medicare premium payments and after the downgrades of health.
The shares maintained slight losses on Friday afternoon after the Financial Times said that President Trump was pressure for a minimum rate of 15% to 20% in any commercial agreement with the European Union (EU), because Mr. Trump remained tireless by the last EU offer to reduce car rates. In addition, the Financial Times said that the EU trade commissioner SEFCOVIC had given an excessive assessment of recent trade negotiations in Washington on Friday at EU ambassadors.
The stock market indices initially increased on Friday, with the S&P 500 and the NASDAQ 100 displaying new records. Haussiers factors included the stronger than expected housing departure report and generally optimistic profits. In addition, the American consumer feelings of the University of Michigan increased more than expected at a 5 -month summit.
The fall in bond yields is favorable to the actions following the dominant comments of the Fed governor, Christopher Waller on Thursday evening, who said that he supported a drop in FED interest rates at the FOMC meeting from July 29 to 30. In addition, a relaxation of inflation expectations in Friday’s report on the inflation of the University of Michigan in July was optimistic for TO T and actions. The 10 -year -old T -Note yield fell from -2 pb to 4.43%.
The American accommodation in June increased by + 4.6% m / m to 1.321 million, stronger than the expectations of 1,300 million. In addition, the June construction permits, a future construction indicator, increased unexpectedly by + 0.2% m / m to 1.397 million compared to the expectations of a drop from -0.5% m / m to 1.387 million.
The feelings of consumer feelings of the University of Michigan increased by +1.1 to a higher 5 months of 61.8, stronger than the expectations of 61.5.
The inflation indicator of the United States of the University of Michigan in July 1 year fell to a hollow of 5 months of + 4.4%, better than expectations without change at + 5.0%. In addition, the inflation inflation indicator from July 5 to 10 was relaxed at a 5 -month hollow of + 3.6%, lower than expectations of + 3.9%.
Thursday evening, the governor of the Fed, Christopher Waller, said: “With inflation near Target and the rising risks of limited inflation, we should not wait for the labor market to deteriorate before reducing the policy rate. I think it is logical to reduce the rate of FOMC policy by 25 basis in two weeks.”
The recent commercial news has dropped down to the shares. President Trump said on Wednesday evening that he intended to send a pricing letter to more than 150 countries by informing them that their rate rates could be 10% or 15%, from August 1, and that the group was “no major countries that do not do so much business with the United States”.
In addition, President Trump last weekend announced that the United States would impose prices of 30% on American imports in the European Union and Mexico, from August 1. Trump said last Thursday that a 35% rate on certain Canadian products would take effect on August 1, against the current 25%. Last week, Trump imposed a 50% rate of copper imports, which will include semi-finished products, and said that pharmaceutical companies could face rates that may reach 200% on imports if they do not move production in the United States over the next year.
Federal fund prices reduce the chances of a rate drop of -25 bp to 5% at the meeting from July 29 to 30 and 58% in the next meeting from September 16 to 17.
The profit season has started seriously this week, the results of Big Bank profits have become stronger than expected. The first results now show that the profits of S&P 500 are being increased by + 3.2% for the second quarter, better than pre-season expectations of + 2.8% in annual sliding, according to Bloomberg Intelligence. In addition, only six of the eleven S&P 500 sectors should display an increase in income, the least since the first quarter of 2023, according to Yardeni’s search.
Friday, the stock markets abroad settled mixed. The Euro Stoxx 50 closed -0.33%. The composite of Chinese Shanghai closed up + 0.50%. The Nikkei stock in Japan 225 fell 2.5 more weeks and closed -0.21%.
Interest rate
Friday, September 10-year (ZNU25) closed +8.5 ticks. T -note yield at 10 years fell from -2.3 pb to 4.428%. T-Notes increased on Friday on the dominant comments of the Governor of the Fed, Christopher Waller, who declared that he supported a drop in rate of the Fed at the FOMC meeting from July 29 to 30. In addition, the drop in inflation expectations in the University of Michigan on Friday was optimistic for TOs.
On the lower side, the US Housing Start on Friday report was stronger than expected. In addition, the increase in Friday in the feeling of consumers of the University of Michigan in July at a 5 -month summit was negative for TOs.
On Friday, the European government’s bond yields increased. The 10 -year German Bund yield increased by +2.0 pb to 2.695%. The golden yield at 10 years in the United Kingdom has increased to a more than 1.5 months of 4.684% and finished +1.9 bb at 4.674%.
The production of construction of the euro zone fell by -1.7% m / m, the largest drop by almost 2.5 years.
The German PPI of June fell from -1.3% in annual shift, just on expectations and the highest decline in 9 months.
Exchanges reduce the chances of 1% for a rate drop of -25 bp by the ECB at the political meeting of July 24.
US Stock Movers
The weakness of managed health care actions weighed on the wider market on Friday. Molina Healthcare (MOH) closed more than -10% to direct the losers in the S&P 500, and elevance Health (ELV) closed more than -8% after Leerink Partners lowered the stock for the outperformance market. In addition, Centene (CNC) has closed more than -3%, and CVS Health Corp (CVS) and UNITEDHEALTH Group (UNH) closed more than -2%. In addition, Humana (Hmm) closed more than -1% after losing legal action to reverse the cuts to her Medicare bonus payments.
Netflix (NFLX) decreased by more than -5%after planning an annual operating margin of 29.5%, below the consensus of 29.7%.
3m CO (MMM) closed more than -3% to lead losers in the Dow Jones Industrials after having reduced its estimate of organic sales of the full year to + 2% compared to a previous forecast of + 2% to + 3%.
Sarepta Therapeutics (SRPT) closed more than -36% after declaring that another patient died of acute hepatic insufficiency after receiving one of his experimental genetic therapies for muscle disease.
Autoliv (ALV) decreased by more than -4%after reporting an operating margin adjusted to Q2 of 9.30%, below the consensus of 9.35%.
Builders Firstsource (BLDR) closed more than -3% after Zelman & Associates degraded the stock to underperform.
American Express (AXP) decreased by more than -2% after reporting total expenses in the first quarter of $ 12.90 billion, above the consensus of $ 12.73 billion.
Talen Energy (TLN) closed more than 24% after acquiring gas power plants in Pennsylvania and Ohio for $ 3.5 billion.
Investco LTD (IVZ) closed more than + 15% to direct the winners of the S&P 500 after having filed a proxy declaration with the SEC seeking to convert the 1 series Investo qqq Trust 1 into open funds from a unit investment trust.
Interactive Brokers Group (IBKR) closed more than + 7% after having declared a total total income of net interest of $ 860 million, well above the consensus of $ 794.7 million.
Financial regions (RF) increased by more than + 6% after declaring a net net income of $ 1.27 billion, better than consensus of $ 1.24 billion, and the increase in its growth estimate of net interest from + 3% to + 5% compared to a previous estimate of + 1% to + 4%.
Abbott Laboratories (ABT) closed more than + 2% after Jefferies improved the action to buy in Hold with a price target of $ 145.
Norfolk Southern (NSC) closed more than + 2% on the reports that Union Pacific would explore an acquisition of the company.
Charles Schwab (SCHW) increased by more than 2% after reporting a net turnover of $ 5.85 billion, stronger than the consensus of $ 5.72 billion.
On the date of publication, Rich Asplund did not (directly or indirectly) have positions in any of the titles mentioned in this article. All information and data of this article are only for information purposes. This article was initially published on Barchart.com
