Tue 12 Sep 2017


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In Portfolioticker today

Today at the stock market

bull/bearThe S&P 500 hit a record closing high for the second day in a row on Tuesday, with financial stocks leading the charge, but gains were stunted by a decline in Apple Inc shares after it unveiled its latest iPhone. Nasdaq also clocked a record closing high despite weakness from Apple.

  • The S&P 500 index gained 8.37 points, or 0.34%, to 2,496.48.
  • The Dow Jones Industrial Average rose 61.49 points, or 0.28%, to 22,118.86.
  • The Nasdaq Composite added 22.02 points, or 0.34%, to 6,454.28.
  • Advancing issues outnumbered declining ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.70-to-1 ratio favored advancers.
  • About 5.89 billion shares changed hands on U.S. exchanges, above the 5.79 billion 20-day average.

Investors were more comfortable with riskier assets as concerns about U.S. tensions with North Korea eased and the financial impact from Hurricane Irma appeared less severe than feared last week.

The financial sector was the S&P 500’s biggest driver as bank stocks were helped by rising U.S. Treasury yields, while the utilities and real estate sectors lost ground.

“It’s a better environment for risk assets. As long as these two issues North Korea and the hurricane – have receded as concerns, it gives investors a green light to focus on stronger fundamentals,” said David Joy, chief market strategist at Ameriprise Financial in Boston.

Concerns about Hurricane Irma’s impact receded as it weakened to a tropical depression, while investors shrugged off fresh developments related to North Korea.

“A lot of it is the realization that the latest hurricane wasn’t as devastating in the U.S. as people feared,” said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.

Apple’s shares closed a volatile trading session 0.4% lower at $160.82 after rising as high as $163.96, after it unveiled its 10th anniversary edition of the iPhone. Apple’s release date of 3 Nov 2017 was later than some investors had expected. While some investors cited worries about whether Apple would face supply shortages, others said traders were just taking profits. “There were no blockbuster surprises although what they’re doing with the products is all pretty good,” said Tim Ghriskey.

Apple was the second-biggest drag on the S&P behind McDonald’s, which fell more than 3% on concerns about its third-quarter results.

Most of the 11 major S&P sectors were higher, with the telecom services index clocking the biggest gain with a 1.4% rise.

Financials, the biggest driver on the day, rose 1.2%, helped by a 1.8% jump in the S&P Bank subsector. Investors in banks, whose profits are boosted by higher rates, were reacting to a jump U.S. Treasury 10-year yields to a 3-week high after a 10-year note auction.

Also, Goldman Sachs unveiled a growth plan that could add as much as $5 billion in revenue annually.

The S&P Utilities and Real Estate sectors were the laggards of the day, with 1.8% and 1.2% declines, as investors shied away from interest rate- sensitive stocks.Reuters

Market indices

Market indices
^ Market indices today (mouseover for 12 month view) Chart: Google Finance

:-) The major market indices closed on record highs today.

Index Ticker Today Change 31 Dec 16 YTD
S&P 500 SPX (INX) 2,496.48 +0.33% 2,238.83 +11.50%
DJIA INDU 22,118.86 +0.27% 19,762.60 +11.92%
NASDAQ IXIC 6,454.28 +0.34% 5,383.12 +19.89%

read_this Portfolio Indices

USD and AUD denominated indices over the past 52 weeks (Chart: Bunting)
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting

Index values

Index Currency Today Change 31 Dec 16 YTD
USD-denominated Index USD 2.856 -0.17% 2.105 +35.69%
Valuation Rate USD/AUD 0.80688 -0.11% 0.72663 +11.04%
AUD-denominated Index AUD 3.543 -0.06% 2.895 +22.39%

Portfolio stock prices

:-) Ebay closed on a record $38.18 up 0.23% on yesterday’s record of $38.09.
:-) Visa closed on a record $106.21 up 0.05% on yesterday’s record of $106.15.

Stock Ticker Today Change 31 Dec 16 YTD
Alphabet A GOOGL $946.65 +0.35% $792.45 +19.45%
Alphabet C GOOG $932.07 +0.32% $771.82 +20.76%
Apple AAPL $160.86 -0.40% $115.82 +38.88%
Amazon AMZN $982.58 +0.47% $749.87 +31.03%
Ebay EBAY $38.18 +0.23% $29.69 +28.59%
Facebook FB $172.96 -0.32% $115.05 +50.33%
PayPal PYPL $62.56 -0.13% $39.47 +58.50%
Twitter TWTR $18.17 +2.88% Opinion $16.30 +11.47%
Visa V $106.21 +0.05% $78.02 +36.13%
VMware VMW $109.6 +1.74% $78.73 +39.20%

FX: USD/AUD

USD

DXY movements
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg

The Bloomberg Dollar Spot Index (DXY) rose 0.1%.
The EUR rose 0.1% to USD 1.1965.
Britain’s GBP rose 0.9% to USD 1.3284, the strongest in a year
Japan’s JPY fell 0.7% to 110.18 per USD, the weakest since 1 Sep 2017.
Bloomberg

AUD

AUD movements
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com

Oil and Gas Futures

Futures prices

Prices are as at 15:50 EDT

  • NYMEX West Texas Intermediate (WTI): $48.25/barrel +0.37% Chart
  • ICE (London) Brent North Sea Crude: $54.28/barrel +0.82% Chart
  • NYMEX Natural gas futures: $3.00/MMBTU +1.78% Chart

Apple Product Release

Some key points about Apple’s product launch today Video Coverage:

  • Apple Watch Series 3. Starts at USD400. Cellular Watch, can connect directly to cellular networks. Watch Series 3
  • iPhone 8, starts at USD $699, iPhone 8 Plus starts at $799. iPhone 8
  • iPhone X, USD 999, but shipment is delayed until 3 Nov 2017 – expected to reduce Sep 2017 quarter revenue. Longer battery life. Optical stabilization on 2x camera, like the Galaxy Note 8. FaceID. No home button. Side button for Siri. iPhoneX
  • iPad Pro iPad pro
  • AirPower, wireless charging mat, to be available in 2018. More
  • Apple TV 4K, supporting both 4K and High Dynamic Range (HDR) Apple Press Release Product
  • Home Pod Home Pod

Press commentaries: Reuters

Market Reaction

aapl_20170912

flag_usa US: Job Openings and Labor Turnover (JOLTS). Jul 2017

Press Release Extract [ser_jolts]

The number of job openings was little changed at 6.2 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Over the month, hires and separations were also little changed at 5.5 million and 5.3 million, respectively. Within separations, the quits rate and the layoffs and discharges rate were little changed at 2.2 percent and 1.2 percent, respectively.

us_jolts1_20170912

Job Openings

On the last business day of July, there were 6.2 million job openings, little changed from June. The job openings rate was 4.0 percent. The number of job openings was little changed for total private and decreased for government (-58,000). Job openings increased in a number of industries with the largest increases occurring in other services (+111,000), transportation, warehousing, and utilities (+70,000), and educational services (+26,000). Job openings decreased in health care and social assistance (-72,000), state and local government, excluding education (-46,000), and federal government (-21,000). The number of job openings was little changed in the regions.

Hires

The number of hires was little changed at 5.5 million in July. The hires rate was 3.8 percent. The number of hires was little changed for total private and for government. The number of hires increased for federal government (+9,000), and was little changed for all other industries. The number of hires was little changed in all four regions.

Separations

us_jolts2_20170912

Total separations includes quits, layoffs and discharges, and other separations. Total separations is referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer. Other separations includes separations due to retirement, death, disability, and transfers to other locations of the same firm.

The number of total separations was little changed at 5.3 million in July. The total separations rate was 3.6 percent. The number of total separations was little changed for total private and for government. Total separations increased in federal government (+8,000) but decreased in educational services (-19,000). The number of total separations was little changed in all four regions.

The number of quits was little changed at 3.2 million in July. The quits rate was 2.2 percent. The number of quits was little changed for total private and for government. Quits decreased in educational services (-16,000). The number of quits was little changed in all four regions.

There were 1.8 million layoffs and discharges in July, little changed from June. The layoffs and discharges rate was 1.2 percent in July. The number of layoffs and discharges was little changed for total private and for government. The layoffs and discharges level increased in federal government (+9,000). The number of layoffs and discharges was little changed in all four regions.

The number of other separations was little changed in July. The other separations level was also little changed for total private and for government. Other separations increased in professional and business services (+31,000) and in information (+6,000), but decreased in wholesale trade (-15,000). In all four regions, the number of other separations was little changed.

Net Change in Employment

Large numbers of hires and separations occur every month throughout the business cycle. Net employment change results from the relationship between hires and separations. When the number of hires exceeds the number of separations, employment rises, even if the hires level is steady or declining. Conversely, when the number of hires is less than the number of separations, employment declines, even if the hires level is steady or rising. Over the 12 months ending in July, hires totaled 63.6 million and separations totaled 61.5 million, yielding a net employment gain of 2.1 million. These totals include workers who may have been hired and separated more than once during the year.

Bureau of Labor Statistics, “Job Openings and Labor Turnover. Jul 2017“, 12 Sep 2017 (10:00) More

flag_japan Japan update

Currency: USD/JPY

JPY movements
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: Nikkei 225

N225 movements
^ Nikkei N225 movements over the past week Chart: Google Finance

flag_china China update

Currency: USD/CNY

CNY movements
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com

Stockmarket: CSI300

CSI300 movements
^ Shanghai CSI300 movements over the past week Chart: Google Finance