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In Portfolioticker today
Today at the stock market
“U.S. stocks rallied on Friday, lifted by gains in technology stocks and a retreat in Treasury yields as the Federal Reserve eased concerns about the path of interest rate hikes this year.
The U.S. central bank, looking past the recent stock market sell-off and inflation concerns, said it expected economic growth to remain steady and saw no serious risks on the horizon that might pause its planned pace of rate hikes.
Investors largely expect the Fed to raise rates three times this year, beginning with its next meeting in Mar 2018, the first under new Chair Jerome Powell. Traders currently see a 95.5% chance of a quarter-percentage-point hike next month, according to Thomson Reuters data.
“Certainly bond yields pulling back today is helpful for stocks, at least for the short term, that has been the narrative that is out there – that higher bond yields are weighing on stocks and this preoccupation with three percent,” said Willie Delwiche, investment strategist at Baird in Milwaukee. “So moving away from that, for today at least, provides a bid for equities.”
Powell’s first public outing will be on Tuesday, when he will testify separately before the House and Senate committees.
Today’s dip in yields helped boost bond proxy sectors such as utilities, up 2.66%, and real estate, up 1.72%. The sectors have been among the worst performers so far this year on expectations of climbing rates.
The two companies created from the split of Hewlett Packard Co in 2015, reported strong results and HPE also announced a plan to return $7 billion to shareholders.
Blue Buffalo Pet Products jumped 17.23% after General Mills said it would buy the natural pet food maker for $8 billion. General Mills was the biggest percentage decline on S&P 500, falling 3.59%.” Reuters
^ Market indices today (mouseover for 12 month view) Chart: Google Finance
|Index||Ticker||Today||Change||31 Dec 17||YTD|
|S&P 500||SPX (INX)||2,747.30||+1.60%||2,238.83||+2.75%|
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting
|Index||Currency||Today||Change||31 Dec 17||YTD|
Portfolio stock prices
Amazon closed on a record high of $1,500.00, up 0.99% on yesterday’s record $1,485.34.
|Stock||Ticker||Today||Change||31 Dec 17||YTD|
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg
“The Bloomberg Dollar Spot Index (DXY) fell less than 0.1%.
The EUR rose 0.2% to USD 1.2301.
Britain’s GBP 0.1% to $1.3971.
Japan’s JPY fell 0.1% to 106.826 per USD.
The yield on 10-year Treasuries fell 5 basis points to 2.87%. It rose as high as 2.95% on Wednesday.
The 2-year yield was flat at 2.24%.
Germany’s 10-year yield fell 5 basis points to 0.653%, the lowest in 4 weeks.
Japan’s 10-year yield dipped less than one basis point to 0.05%.” Bloomberg
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com
Oil and Gas Futures
Prices are as at 15:49 ET
- NYMEX West Texas Intermediate (WTI): $63.56/barrel +1.26% Chart
- ICE (London) Brent North Sea Crude: $67.31/barrel +1.39% Chart
- NYMEX Natural gas futures: $2.63/MMBTU -0.23% Chart
EU: Inflation (HICP). Jan 2018
Press Release Extract [eu_cpi]
Euro area annual inflation rate was 1.3% in January 2018, down from 1.4% in December 2017. In January 2017, the rate was 1.8%. European Union annual inflation was 1.6% in January 2018, down from 1.7% in December 2017.
The lowest annual rates were registered in Cyprus (-1.5%), Greece (0.2%) and Ireland (0.3%). The highest annual rates were recorded in Lithuania and Estonia (both 3.6%) and Romania (3.4%). Compared with December 2017, annual inflation fell in twenty-one Member States, remained stable in one and rose in six.
In January 2018, the highest contribution to the annual euro area inflation rate came from services (+0.56 percentage point), followed by food, alcohol & tobacco (+0.39 pp), energy (+0.22 pp) and non-energy industrial goods (+0.15 pp).”
Eurostat, “Inflation (HICP). Jan 2018“, 23 Feb 2018 More
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com
Stockmarket: Nikkei 225
^ Nikkei 225 movements over the past week Chart: Google Finance
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com
^ Shanghai CSI300 movements over the past week Chart: Google Finance