News Column

Coutts-US close: Dow Jones within touching distance of 17,000

July 2, 2014

ENP Newswire - 02 July 2014

Release date- 01072014 - US close: Dow Jones within touching distance of 17,000.

ISM manufacturing index slightly below forecasts - ISM new orders gauge advances - Netflix gains on Goldman upgrade Dow Jones Industrials: 0.77% Nasdaq Composite: 1.15% S&P 500: 0.65% US stock markets started the second quarter in optimistic mood, following the release of largely in-line readings on the state of the US manufacturing sector and general confidence of an upturn economic performance for the rest of the year.

The Dow Jones was within kissing distance of the legendary 17,000-point mark, coming just a point away at one point during the trading session but finished slightly further away to attempt to smash the mark another day. Stocks were not hindered by the widely-followed ISM manufacturing sector purchasing managers' index (PMI) slipped to a reading of 55.3 for June after a print of 55.4 in May (consensus: 55.5), although this remained in the upper portion of the range of the past few years, as pointed out by Daiwa'sMichael Moran.

The new orders index, a more forward-looking component of the survey, rose in June from 56.9 to 58.9, the highest level since December last year, indicating the main index is likely to rise in coming months. The US Markit PMI, a less closely followed measure was slightly below the earlier flash reading, at 57.3, but still pointed at improved activity levels and represented the highest pace of expansion in four years, according to Barclays. Fed to move a tad sooner? Capital Economics pointed to the recent resurgence in underlying US inflation, which it expects to be compounded by a pick-up in wage growth during the second half of 2014, as the main factors behind their interest rate call.

Economists Paul Dale and Paul Ashworth now forecast that the Federal Reserve will carry out its first hike in the fed funds rate come March of next year instead of in mid-2015.

Likewise, they now project that the Fed's main policy rate will end 2015 at 1.25% and 2015 at 3%. RBS's Alberto Gallo was rather more critical, explaining to clients that the Fed is being complacent on the risks building up in the credit markets. Automobile sector accelerates Automobile stocks were in focus today following solid June sales figures out from the likes of General Motors and Fiat.

US auto sales totaled 17.0m saar (seasonally adjusted annual rate), the highest reading since January 2006 and well above consensus forecasts. Barclays analysts said the data signalled that consumers were now willing to make big-ticket purchases, 'and should ease fears generated by the sluggish tone of recent consumer spending data'. Goldman pushes Netflix higher Analysts at Goldman Sachs upped their view on shares of Netflix to 'buy' from 'neutral', optimistically predicting the online movies and TV shows streamer can swell earnings per share can reach $57.83 by 2018, compared to the consensus estimate of $18.81. 'We estimate that Netflix's addressable audience of subscribers will more than double over the next three years to 207 million as the company adds 6 new markets this year and 2 to 4 markets annually thereafter,' Goldman wrote. Regeneron Pharmaceuticals spiked as French pharma rival Sanofi outlined plans to raise its stake in the US biotech to up to 22.5% by July 29th, under an agreement between the companies that allowing Sanofi to own up to 30% of Regeneron. Fashion retailer Urban Outfitters was lower after Wedbush Morgan analysts cut the stock from 'outperform' to 'neutral' on concerns of a slowdown at its Anthropologie brand.

Oil futures slip Front month West Texas crude futures were lower by 0.40% at $105.42/barrel on the NYMEX.

US 10-year Treasury yields were edging three basis points higher to 2.56% S&P 500 - Risers Regeneron Pharmaceuticals Inc.

(REGN) $303.39 +7.41% Netflix Inc.

(NFLX) $473.10 +7.38% Alexion Pharmaceuticals Inc.

(ALXN) $162.79 +4.19% Delta Airlines Inc.

(DAL) $40.31 +4.11% Priceline Group Inc (PCLN) $1,246.77 +3.64% Seagate Technology Plc (STX) $58.88 +3.63% Southwest Airlines Co.

(LUV) $27.73 +3.24% Perrigo Company plc (PRGO) $150.42 +3.20% Micron Technology Inc.

(MU) $33.98 +3.13% Celgene Corp.

(CELG) $88.50 +3.05% S&P 500 - Fallers Chesapeake Energy Corp.

(CHK) $29.24 -5.92% NRG Energy Inc.

(NRG) $36.34 -2.31% Exelon Corp.

(EXC) $35.70 -2.14% FirstEnergy Corp.

(FE) $34.00 -2.07% Weyerhaeuser Co.

(WY) $32.45 -1.93% H&R Block Inc.

(HRB) $32.90 -1.85% Range Resources Corp.

(RRC) $85.37 -1.82% Family Dollar Stores Inc.

(FDO) $64.95 -1.81% Noble Corporation plc (NE) $32.98 -1.73% PG&E Corp.

(PCG) $47.23 -1.65% Dow Jones I.A - Risers International Business Machines Corp.

(IBM) $186.35 +2.80% Visa Inc.

(V) $214.25 +1.68% Pfizer Inc.

(PFE) $30.08 +1.35% Travelers Company Inc.

(TRV) $95.21 +1.21% Johnson & Johnson (JNJ) $105.87 +1.19% Merck & Co.


(MRK) $58.51 +1.14% Home Depot Inc.

(HD) $81.82 +1.06% Cisco Systems Inc.

(CSCO) $25.08 +0.93% 3M Co.

(MMM) $144.56 +0.92% Verizon Communications Inc.

(VZ) $49.37 +0.90% Dow Jones I.A - Fallers Goldman Sachs Group Inc.

(GS) $166.81 -0.38% Coca-Cola Co.

(KO) $42.29 -0.17% JP Morgan Chase & Co.

(JPM) $57.57 -0.09% E.I.

du Pont de Nemours and Co.

(DD) $65.41 -0.05% Chevron Corp.

(CVX) $130.54 -0.01% Nasdaq 100 - Risers Regeneron Pharmaceuticals Inc.

(REGN) $303.39 +7.41% Netflix Inc.

(NFLX) $473.10 +7.38% Alexion Pharmaceuticals Inc.

(ALXN) $162.79 +4.19% Priceline Group Inc (PCLN) $1,246.77 +3.64% Seagate Technology Plc (STX) $58.88 +3.63% Micron Technology Inc.

(MU) $33.98 +3.13% Celgene Corp.

(CELG) $88.50 +3.05% Biogen Idec Inc.

(BIIB) $324.74 +2.99% Gilead Sciences Inc.

(GILD) $85.29 +2.87% Avago Technologies Ltd.

(AVGO) $74.03 +2.72% Nasdaq 100 - Fallers Intuitive Surgical Inc.

(ISRG) $406.49 -1.29% Monster Beverage Corp (MNST) $70.14 -1.25% Sirius XM Holdings Inc (SIRI) $3.43 -0.72% CH Robinson Worldwide Inc (CHRW) $63.53 -0.41% Fastenal Co.

(FAST) $49.29 -0.40% Liberty Media Corporation - Class A (LMCA) $136.14 -0.40% Express Scripts Holding Co (ESRX) $69.07 -0.38% Sba Communications Corp.

(SBAC) $101.94 -0.35% Tesla Motors Inc (TSLA) $239.72 -0.14% Symantec Corp.

(SYMC) $22.88 -0.09% OH

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Source: ENP Newswire

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