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US Market Wrap 1 October 2018

Posted by Billy Macris on 01-Oct-2018 10:41:48

US equities closed little unchanged on Friday as gains in Intel Corp and Boeing helped strengthen the Dow, whilst gains were also seen in the Utilities sector following a fall treasury yields. The Dow closed the session higher by 0.07%, the S&P 500 flat and the S&P 500 higher by 0.05%. 


 A 3.07% gain in Intel Corp shares helped cap losses in the Dow after a slump in European equity markets, after the company’s CEO provided positive guidance stating that full year revenue outlook would be met. The Philadelphia Semiconductor index gained 0.65 percent boosted by a 5.09 percent jump in Nvidia shares following bullish broker commentary. Peer Advanced Micro Devices Inc. shares tumbled 5.22 percent. Intel shares were the best performers on the Dow following with Boeing shares rising 1.23% after winning a $9.2 billion contract to build the next Air Force training aircraft . On the on end, DowDuPont shares fell 1.56%, Goldman Sachs fell 1.54% and JPMorgan Chase shares declined 1.47% following a horrid couple of trading session for US financial stocks. Offsetting the gain in tech shares by Intel was Facebook's 2.59% decline following the discovered of a security issue affecting approximately 50 million users.

In news of the day, Tesla shares dropped 13.90 percent after the Securities and Exchange Commission sued CEO Elon Musk for making false and misleading tweets about a potential transaction to take Tesla private. More recently, Musk has reached a settlement with the SEC and will step down as the company’s chairman for three years and pay $40 million in penalties. Musk will remain as CEO but the firm will need to appoint two new independent directors to its board.

In economic data, Italy’s new government proposed in 2019 a budget deficit three times larger than the previous administration. The news sparked a sell off in European stocks and a drop in US treasury yields as investors turned to US bonds for greater stability. Treasury yields also fell on Friday as the Federal Reserve’s preferred indicator of inflation, the personal consumption expenditure price index was unchanged after rising 0.2 percent in July. Yields on the 10-year treasury notes were lower at 3.065 percent.

1.10.18 - US1

1.10.18 - US2

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Chart of the Day: Tesla Inc. (TSLA) Daily Chart

1.10.18 - tsla

 

Topics: +U.S. Market Wrap