New York Stock Exchange Weekly Market Report

This is the US weekly market wrap for the week ending Friday, 27 May 2016


The three major averages ended on a positive note, all closing to the upside by greater than 2% for the weeks trading


Dow Jones industrial average gained 372 points for the week to close higher 2.1% to 17,873


The NASDAQ gained 163 points to close higher 3.4% to 4933


And the S&P 500 gained 46 points for the week to close up 2.3% 2099


The US dollar moved higher for the fourth consecutive week in a row, primarily on the back of the fed fund futures market expectations of a rate hike remaining at 30% for the month of June, and the July expectations of a rate hike moving up from 55% to 62%


Monday’s trading was limited to one economic data release


The May PMI index came in slightly above the 50 level with an actual reading of 50.5 with consensus expectations at 51, which points to continuing softness within the manufacturing sector


In Monday’s market action Monsanto jumped 4.4% on an acquisition cash offer from Bayer of $122 per share


And Apple closed up $1.21 to $96.43 on reports that the company had requested 78 million units of the iPhone 7 from suppliers


The US dollar index closed down five cents to $95.29


And the yield on the 10 yr. note ended down one basis point to 1.83%


The Dow Jones was flat closing slightly lower by8 points


Tuesday’s trading was also limited to one economic release the new home sales report

Which surprised to the upside coming in at 619,000 with consensus expectations at 523,000


The 16.6% jump is the biggest monthly gain since January 1992


In Tuesdays market action the release of positive quarterly results for home builder Toll brothers caused the stock to rally $2.36 to close at $29.46


And Netflix jumps 3.2% or three dollars to $97.89 after the company released details on its distribution deal with Disney


Crude oil rallied 2% to close at $49.10


The US dollar index rallied 0.4% or $.37 to $95.60 and the yield on the 10 yr note was up three basis points to 1.86%


The Dow Jones industrial average finished higher 213 points


Wednesday saw two economic data releases in focus


The April international trade in goods report which showed a widening trade deficit in April of $57.5 billion relative to a revised $55 .6 billion in March with April exports up 1.8% and April imports up 2.3%


The EIA petroleum status report showed a draw of 4.2 million barrels of crude Oil, a rise in inventories of 2 million barrels for gasoline and a draw of 1.3 million barrels for distillates.


In Wednesday’s market action Tiffany and Co traded flat after disappointing quarterly results and guidance, Microsoft traded higher by 1% after announcing it would cut 1850 jobs in its smart phone division and IBM demonstrated relative strength to the technology sector gaining 2.3% or $3.38 to close at $151.69


The Dow Jones industrial average closed higher by 145 points


Thursday’s economic data included three releases


The April durable goods order report surprised to the upside with a m/m change of 3.4% with consensus at 0.3%, with vehicles and commercial aircraft being the major driver of the increase.


Initial jobless claims decreased 10,000 to 268,000 with the consensus expectation of 275,000


And pending home sales for April jumped 5.1% with a consensus expectation of 0.8% indicating the housing sector has been improving rapidly


Thursday’s market action saw Alibaba jump 3.7%, HP rally 6.9% after beating the street and raising its earnings guidance above estimates.


The yield on the 10 year note fell 4 basis points to 1.83%


The US dollar index was lower by $.19 to $95.16 and crude oil closed slightly softer to $49.44 after briefly hitting $50


The Dow Jones industrial average close down 24 points


Friday’s economic data saw the First qtr. GDP release come in at 0.8% close to expectations of 0.9%


And the May University of Michigan sentiment index revised down to 94.7 from the preliminary reading of 95.8. The indexes reading is the best since June last year and one of the strongest readings of the entire economic cycle


In market news Verizon outperformed, up $.46 to $50.62 after the company reached an agreement with striking workers.


Yahoo rallied 2.9% on rumours regarding potential bids for the company. And Google gained $8.54 to $732.66 after a ruling in the companies favour regarding a licensing dispute with Oracle.


The US dollar index closed up $.58 to $95.75 and the yield on the 10yr note closed 2 basis points higher to 1.85%


Gold end down 0.6% to $1213 and the Dow Jones industrial average close higher by 44 points


Equity and bond markets will be closed on Monday for observance of the Memorial Day holiday.


This has been the US weekly market wrap for Friday, 27 May 2016 and I have been your host Aaron Furst I’ll see you again next time


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