Wed 13 Sep 2017


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In Portfolioticker today

Today at the stock market

bull/bearWall Street edged up to a record high on Wednesday as gains in consumer discretionary and energy stocks offset losses in technology heavyweight Apple Inc. Even with Apple’s losses, the S&P 500, Dow Jones industrial average and the Nasdaq all closed at record levels, helped by other consumer stocks.

  • The S&P 500 rose 1.89 points, or 0.08%, to a record 2,498.37. The S&P 500, up 11.6% in 2017, is trading at 17.6 times expected earnings, expensive compared with its 10-year average of 14.3, according to Thomson Reuters Datastream.
  • The Dow Jones Industrial Average rose 39.32 points, or 0.18%, to a record 22,158.18.
  • The Nasdaq Composite rose 5.91 points, or 0.09%, to a record 6,460.19.
  • The S&P 500 posted 31 new 52-week highs and one new low; the Nasdaq Composite recorded 103 new highs and 17 new lows.
  • Advancing issues outnumbered declining ones on the NYSE by a 1.10-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored advancers.
  • About 6.2 billion shares changed hands on U.S. exchanges, above the 5.8 billion 20-day average.

The indexes have hit several records this year, despite setbacks caused by turmoil in the White House, the timing of U.S. interest rate hikes, doubts about President Donald Trump’s ability to push through his pro-business reforms, and lately, tensions over a nuclear-weapons-capable North Korea.

Shares of Apple dropped 0.8% on concerns that the company’s newly launched iPhone X is too expensive and because its availability starting in Nov 2017 was later than expected. With the widely held stock up 37% so far this year, some analysts said it was time to cash in gains.

“Apple to a certain extent is a ‘sell the news’ event,” said Art Hogan, chief market strategist at Wunderlich Securities in New York. “A great deal of expectation has been built into the stock.”

The S&P energy index rose after the International Energy Agency said that a global surplus of crude was starting to shrink.

Shares of credit score provider Equifax tumbled 14.6% and hit a more than 1½ year low after an apology by company Chief Executive Richard Smith for a massive data breach failed to appease investors.cc“Of course it should be getting pounded and the situation is only getting worse. They have a huge problem on their hands. The fact the (CEO) has been so cavalier – it took him five days to write a response – it’s a disaster,” said Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York.

Target Corp rose 2.8% after the retailer said it would hire 100,000 workers for the holiday season, 43% more than last year.

Chevron Corp climbed 1.5%, boosting the Dow, while a 1.7% rise in Amazon.com boosted the Nasdaq.

Nordstrom Inc gained 6.0% after the company’s founding family selected private equity firm Leonard Green & Partners to help take it private.Reuters

Market indices

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

:-) All of the market indices below closed on record highs again today.

Index Ticker Today Change 31 Dec 16 YTD
S&P 500 SPX (INX) 2,498.37 +0.07% 2,238.83 +11.59%
DJIA INDU 22,158.18 +0.17% 19,762.60 +12.12%
NASDAQ IXIC 6,460.19 +0.09% 5,383.12 +20.00%

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 2.848 -0.28% 2.105 +35.31%
Valuation Rate USD/AUD 0.80329 -0.45% 0.72663 +10.55%
AUD-denominated Index AUD 3.549 +0.16% 2.895 +22.58%

Portfolio stock prices

:-) Ebay closed on a record high of $38.27, up 0.24% on yesterday’s record of $38.18.

Stock Ticker Today Change 31 Dec 16 YTD
Alphabet A GOOGL $950.44 +0.40% $792.45 +19.93%
Alphabet C GOOG $935.09 +0.32% $771.82 +21.15%
Apple AAPL $159.65 -0.76% $115.82 +37.84%
Amazon AMZN $999.60 +1.73% $749.87 +33.30%
Ebay EBAY $38.27 +0.23% $29.69 +28.89%
Facebook FB $173.05 +0.05% $115.05 +50.41%
PayPal PYPL $62.04 -0.84% $39.47 +57.18%
Twitter TWTR $18.20 +0.16% $16.30 +11.65%
Visa V $105.83 -0.36% $78.02 +35.64%
VMware VMW $110.43 +0.75% $78.73 +40.26%

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 0.4%.
The EUR fell 0.7% to USD 1.1882.
Britain’s GBP fell 0.6% to USD 1.3201.
Japan’s JPY slipped 0.4% to 110.62 per USD, a one-month low.
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 15:48 EDT

  • NYMEX West Texas Intermediate (WTI): $49.36/barrel +2.34% Chart
  • ICE (London) Brent North Sea Crude: $55.18/barrel +1.68% Chart
  • NYMEX Natural gas futures: $3.06/MMBTU +1.83% Chart

flag_australia AU: Household Income and Wealth. 2015-2016

Press Release Extract [ser_au_wealth]

Average household debt has almost doubled since 2003-04 according to the latest figures from the Survey of Income and Housing, released by the Australian Bureau of Statistics (ABS).

ABS Chief Economist Bruce Hockman said average household debt had risen to $169,000 in 2015-16, an increase of $75,000 on the 2003-04 average of $94,000.

Around one-in-four households with debt – 27 per cent – had debt equal to three or more years’ worth of their disposable household income in 2015-16. A further two per cent of households held debt equal to three-quarters or more of the value of their households’ assets. Based on either of these comparisons, around three-in-ten of households with a debt (29 per cent) in Australia are considered to be ‘over-indebted’,” Mr Hockman said.

Growth in debt has outpaced income and asset growth since 2003-04. Rising property values, low interest rates and a growing appetite for larger debts have all contributed to increased over-indebtedness. The proportion of over-indebted households has climbed to 29 per cent of all households with debt in 2015-16, up from 21 per cent in 2003-04.

Just under half of all households with a mortgage were over-indebted in 2015-16. Younger property owners in particular have taken on greater debt. Three-in-five households (62 per cent) headed by a 25-34 year-old, and one-in-two (51 per cent) of 35-44 year-old households who held a property loan were over-indebted.

“Nearly half of our most wealthy households (47 per cent) who have a property debt are over-indebted, holding an average property debt of $924,000. This makes them particularly susceptible if market conditions or household economic circumstances change,” explained Mr Hockman.

Perth was one of our most over-indebted capital cities. Over half (55 per cent) of Perth property owners were over-indebted, and owed on average $574,000 per household in property debt.

However, Darwin was the capital city with the highest rate of over-indebtedness among property owners at 69 per cent. Darwin households held on average $581,000 in total property debt.

Sydney and Melbourne had the highest actual number of property owners who were over-indebted. Over-indebted households with a property in Sydney owed an average of $765,000, which was $269,000 more than the average property debt of their Melburnian counterparts.

Australian Bureau of Statistics, “6523.0 – Household Income and Wealth, Australia, 2015-16“, 13 Sep 2017 More

flag_europe EU: Employment. Q2/2017

Press Release Extract [ser_eu_jobs]

The number of persons employed increased by 0.4% in both the euro area (EA19) and in the EU28 in the second quarter of 2017 compared with the previous quarter, according to national accounts estimates published by Eurostat, the statistical office of the European Union. In the first quarter of 2017, employment increased by 0.5% in both areas. These figures are seasonally adjusted.

eu_jobs_20170913

Compared with the same quarter of the previous year, employment increased by 1.6% in the euro area and by 1.5% in the EU28 in the second quarter of 2017 (after +1.6% and +1.5% respectively in the first quarter of 2017).
Eurostat estimates that, in the second quarter of 2017, 235.4 million men and women were employed in the EU28, of which 155.6 million were in the euro area. These are the highest levels ever recorded in both areas. These figures are seasonally adjusted.

These quarterly data on employment provide a picture of labour input consistent with the output and income measure of national accounts.

Employment growth in Member States

eu_jobs_states_20170913

Among Member States for which data are available for the second quarter of 2017, Malta (+1.0%), Spain (+0.9%), Greece and Poland (both +0.8%) recorded the highest increases compared with the previous quarter. In contrast, decreases in employment were observed in Croatia (-0.8%), Latvia (-0.7%), Romania (-0.6%) and Estonia (-0.5%).

Eurostat, “Second quarter of 2017 compared with the first quarter of 2017: Employment up by 0.4% in both the euro area and in the EU28, +1.6% and +1.5% respectively compared with the second quarter of 2016“, 13 Sep 2017 More

flag_europe EU: Industrial Production. Jul 2017

Press Release Extract [ser_eu_production]

In July 2017 compared with June 2017, seasonally adjusted industrial production rose by 0.1% in the euro area (EA19), while it decreased by 0.3% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In June 2017, industrial production fell by 0.6% in both zones.

eu_production_20170913

In July 2017 compared with July 2016, industrial production increased by 3.2% in the euro area and by 3.1% in the EU28.

Monthly comparison by main industrial grouping and by Member State

The increase of 0.1% in industrial production in the euro area in July 2017, compared with June 2017, is due to production of capital goods rising by 0.8%, durable consumer goods by 0.7% and intermediate goods by 0.5%, while production of non-durable consumer goods fell by 0.4% and energy by 1.2%.

In the EU28, the decrease of 0.3% is due to production of energy falling by 1.1% and non-durable consumer goods by 0.6%, while production of durable consumer goods rose by 0.2% and that of both intermediate goods and capital goods by 0.4%.
Among Member States for which data are available, the highest increases in industrial production were registered in Portugal (+1.9%), Ireland (+1.8%) and France (+0.6%), and the largest decreases in the Czech Republic (-9.8%), Hungary (-4.1%), Malta and Slovakia (both -3.3%).

Annual comparison by main industrial grouping and by Member State

The increase of 3.2% in industrial production in the euro area in July 2017, compared with July 2016, is due to production of durable consumer goods rising by 5.7%, intermediate goods by 4.8%, capital goods by 4.3% and energy by 1.2%, while production of non-durable consumer goods fell by 0.5%.

In the EU28, the increase of 3.1% is due to production of durable consumer goods rising by 5.0%, intermediate goods by 4.8%, capital goods by 4.6% and energy by 0.1%, while production of non-durable consumer goods fell by 0.4%.

Among Member States for which data are available, the highest increases in industrial production were registered in Slovakia (+9.2%), Latvia (+8.9%) and Romania (+7.6%). Decreases were observed in Ireland (-9.2%), Denmark (-3.1%) and Malta (-1.7%).

Eurostat, “July 2017 compared with June 2017: Industrial production up by 0.1% in euro area, Down by 0.3% in EU28“, 13 Sep 2017 More

flag_usa US: Producer Price Indexes. Aug 2017

Press Release Extract [ser_us_ppi]

The Producer Price Index for final demand advanced 0.2 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices edged down 0.1 percent in July and moved up 0.1 percent in June. On an unadjusted basis, the final demand index increased 2.4 percent for the 12 months ended in August.

us_ppi_20170913_monthly

us_ppi_20170913_yearly

Three-quarters of the August increase in final demand prices is attributable to the index for final demand goods, which climbed 0.5 percent. Prices for final demand services inched up 0.1 percent.

The index for final demand less foods, energy, and trade services increased 0.2 percent in August following no change in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 1.9 percent.

Final Demand

Final demand goods: Prices for final demand goods advanced 0.5 percent in August, the largest rise since moving up 0.5 percent in April. Most of the August increase can be traced to the index for final demand energy, which climbed 3.3 percent. Prices for final demand goods less foods and energy moved up 0.2 percent. In contrast, the index for final demand foods fell 1.3 percent.

Product detail: Three-quarters of the August increase in the final demand goods index can be traced to prices for gasoline, which jumped 9.5 percent. The indexes for jet fuel, industrial chemicals, potatoes, home heating oil, and light motor trucks also moved higher. Conversely, prices for meats fell 3.4 percent. The indexes for fresh vegetables (except potatoes) and for plastic resins and materials also declined.

Final demand services: The index for final demand services edged up 0.1 percent in August after falling 0.2 percent in July. Over 70 percent of the increase can be traced to a 0.1-percent advance in the index for final demand services less trade, transportation, and warehousing. Additionally, prices for final demand transportation and warehousing services climbed 0.3 percent. Margins for final demand trade services were unchanged. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Over half of the August increase in the index for final demand services can be attributed to prices for consumer loans (partial), which advanced 1.7 percent. The indexes for outpatient care (partial), machinery and equipment wholesaling, truck transportation of freight, and food retailing also moved higher. In contrast, margins for fuels and lubricants retailing fell 6.8 percent. The indexes for chemicals and allied products wholesaling, guestroom rental, and airline passenger services also declined.

Bureau of Labor Statistics, “Producer Price Indexes. Aug 2017“, 13 Sep 2017 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