Portfolio

US close: Markets push higher on bullish chatter

By Josh White

Date: Tuesday 21 Nov 2017

US close: Markets push higher on bullish chatter

(ShareCast News) - Markets on Wall Street finished higher on Tuesday amid a 'bullish' call on stocks out of Goldman Sachs, and against a backdrop of supportive economic data.
The Dow Jones Industrial Average closed 0.69% higher at 23,590.83, the S&P 500 pushed ahead 0.65% at 2,599.03, and the Nasdaq 100 was 1.11% firmer at 6,378.63.

In a research note entitled 'rational exuberance', strategists at Goldman Sachs earlier projected the S&P 500 would rise to 2,850 points by year-end 2018, if proposed tax reforms were approved.

Should they fail, then the benchmark index would see a 5% drop near-term to 2,450.

Concentrating on the positives, Goldman said an "extended profit cycle will support a rising US equity market through 2020".

"Higher profits will support higher index levels ... our S&P 500 year-end forecasts are 2850 in 2018, 3000 in 2019, and 3100 in 2020 for gains of 11%, 5%, and 3%."

Also on the economic calendar was a speech from Federal Reserve chair Janet Yellen, who said on Monday that she will leave the central bank altogether when she steps down next year, choosing not to remain on the board until her term as governor expires in 2024.

Yellen was due to make a speech at 2300 GMT as she takes part in an event at New York University's business school.

"Janet Yellen's decision to step down next February is not really a surprise given her failure to be reappointed; I'm not sure many of us would do any differently were we in her shoes," noted IG's Chris Beauchamp earlier.

"Her speech today will therefore have something of a valedictory quality, but she is now firmly in the 'lame duck' category of Fed presidents and thus her comments may not move the market as they once did.

"Sic transit gloria, as they say."

On the economic front, existing US home sales jumped 2% in October to reach an annualised clip of 5.48m, against consensus expectations for 5.40m.

Meanwhile, the three-month moving average for the Federal Reserve bank of Chicago's national activity index picked up from a reading of 0.01 for September to 0.28 in October.

In corporate news, Intuit was 3.8% lower following better-than-expected earnings late on Monday, but disappointing guidance.

Drug distributor AmerisourceBergen was also in focus, rising 2.58% after agreeing on Monday to buy independent wholesaler H.D. Smith for $815m.

Elsewhere, investors were pushing back on the Campbell Soup Company, sending shares 8.19% lower after management issued a warning on full-year profits.

Dollar Tree was ahead 2.42% after the company sprinted past analysts' forecasts, posting third quarter earnings per share of $1.01 on sales of $5.32bn.

Analysts had pencilled in earnings per share of just 90 cents on $5.28bn-worth of revenues for the discount retailer.

Stone Energy was under the cosh, falling 15.55% after announcing its intention to tie the knot with privately-held Talos Energy.

Dow Jones - Risers

Apple Inc. (AAPL) $173.14 1.86%
Microsoft Corp. (MSFT) $83.72 1.44%
Home Depot Inc. (HD) $172.86 1.41%
Visa Inc. (V) $111.45 1.36%
3M Co. (MMM) $234.12 1.12%
Unitedhealth Group Inc. (UNH) $212.61 1.12%
International Business Machines Corp. (IBM) $151.93 0.96%
Boeing Co. (BA) $266.99 0.89%
McDonald's Corp. (MCD) $168.35 0.82%
Intel Corp. (INTC) $44.94 0.72%

Dow Jones - Fallers

Wal-Mart Stores Inc. (WMT) $96.50 -0.98%
General Electric Co. (GE) $17.83 -0.83%
JP Morgan Chase & Co. (JPM) $98.93 -0.08%
Goldman Sachs Group Inc. (GS) $237.99 -0.05%
Verizon Communications Inc. (VZ) $46.21 -0.04%
Nike Inc. (NKE) $59.39 0.24%
Walt Disney Co. (DIS) $102.96 0.24%
Johnson & Johnson (JNJ) $138.34 0.30%
Merck & Co. Inc. (MRK) $54.28 0.31%
Chevron Corp. (CVX) $115.17 0.39%

S&P 500 - Risers

Jacobs Engineering Group Inc. (JEC) $64.86 9.30%
TripAdvisor Inc. (TRIP) $32.81 7.64%
Medtronic Plc (MDT) $82.66 4.77%
Viacom Inc. Class B (VIAB) $27.26 4.17%
Endo International Plc (ENDP) $7.57 4.13%
Csra Inc. (CSRA) $28.65 4.10%
Urban Outfitters Inc. (URBN) $29.32 3.71%
Micron Technology Inc. (MU) $49.40 3.69%
Hormel Foods Corp. (HRL) $34.51 3.35%
McKesson Corp. (MCK) $142.86 3.35%

S&P 500 - Fallers

Signet Jewelers Ltd (SIG) $52.78 -30.39%
Campbell Soup Co. (CPB) $45.82 -8.19%
Spectra Energy Corp. (SE) $14.78 -4.58%
Under Armour Inc. Class A (UAA) $12.85 -4.39%
Intuit Inc. (INTU) $151.79 -3.80%
Analog Devices Inc. (ADI) $90.19 -3.09%
Newell Brands Inc (NWL) $27.97 -2.95%
Bed Bath & Beyond Inc. (BBBY) $20.27 -2.83%
Advance Auto Parts (AAP) $88.93 -2.73%
Darden Restaurants Inc. (DRI) $80.33 -2.38%

Nasdaq 100 - Risers

Viacom Inc. Class B (VIAB) $27.26 4.17%
Micron Technology Inc. (MU) $49.40 3.69%
Tesla Inc (TSLA) $317.81 2.94%
Shire Plc Ads (SHPG) $144.83 2.45%
Dollar Tree Inc (DLTR) $99.46 2.42%
Baidu Inc. (BIDU) $244.30 2.41%
Paypal Holdings Inc (PYPL) $77.77 2.32%
KLA-Tencor Corp. (KLAC) $104.73 2.17%
Applied Materials Inc. (AMAT) $58.80 2.05%
American Airlines Group (AAL) $48.65 2.01%

Nasdaq 100 - Fallers

Intuit Inc. (INTU) $151.79 -3.80%
Analog Devices Inc. (ADI) $90.19 -3.09%
O'Reilly Automotive Inc. (ORLY) $215.69 -2.13%
Tractor Supply Company (TSCO) $64.87 -1.31%
Liberty Global Plc Lilac Class A (LILA) $21.55 -1.19%
Liberty Global Plc Lilac Class C (LILAK) $21.57 -0.83%
Discovery Communications Inc. Class A (DISCA) $17.25 -0.63%
Cintas Corp. (CTAS) $147.58 -0.45%
Discovery Communications Inc. Class C (DISCK) $16.21 -0.43%
Alexion Pharmaceuticals Inc. (ALXN) $108.05 -0.41%

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