Stock Market News For Nov 1, 2017

The Nasdaq notched up its 62nd record close for 2017 on Tuesday following gains fromshares of Apple. Meanwhile, Mondelez reported better than expected results for Q3 2017, pushing the S&P 500 higher. The three major benchmarks ended October on a high notching up biggest monthly gains since February. Meanwhile, the Consumer Confidence index logged its best reading in as many as 17 years.

The Dow Jones Industrial Average (DJIA) closed at 23,377.24, gaining 0.1%. The S&P 500 Index (INX) increased 0.1% to close at 2,575.26. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,727.67, increasing 0.4%. Advancing issues outnumbered decliners on the NYSE by a 1.55-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by a 1.85-to-1 ratio. The CBOE VIX decreased 6.5% to close at 9.82.

Fed Meeting and President Trump Keep Investors on Tenterhooks

The Fed’s two day meeting kick started on Tuesday and investors keenly watched the proceedings of the event. Market watchers also looked for clues to know if the much anticipated rate hike would at all be introduced, more so because the inflation is below its desired level. However, economists have clearly stated that they do not expect the Fed to make any changes to existing monetary policies.

A White House official stated on Monday that President Trump would announce his decision regarding who he has chosen as the next Fed Chief on Thursday. Analysts widely expect him to choose Jerome Powell — Member of Federal Reserve Board of Governors — for the top post. Reports have also surfaced in the past that Stanford University economist John Taylor is an equal favorite for the Fed Chief’s job. Investors have been closely watching such events. Meanwhile, political betting site Predictit has already mentioned Jerome Powell as a clear favorite for the post, with 86% odds in his favor.

Markets End Higher as Nasdaq Breaches Record

The Nasdaq amassed 28.7 points on Tuesday to post its 62nd record close for 2017. Such a stellar showing was supported by gains for shares of Apple AAPL following positive reviews of the newly launched iPhone X. Such gains for Apple also boosted gains for the broad based markets.

The tech-laden index has rallied as much as 15% so far in 2017, buoyed by stupendous earnings from some of the major tech stocks (read FAAMG) such as Facebook FB, Amazon.com Inc. AMZN, Apple, Microsoft Corp. MSFT and Google-parent Alphabet Inc. GOOGL. According to Standard & Poor’s, tech earnings together account for almost 75% of the gains for S&P 500. Overall, the tech sector has surged almost 7.7% in October.

Meanwhile, shares of Mondelez International MDLZ rallied 5.4% after posting third quarter 2017 earnings. The company posted Q3 results, with both earnings and revenues surpassing the Zacks Consensus Estimate. Adjusted earnings of 57 cents per share beat the Zacks Consensus Estimate of 54 cents by 5.6%. (Read More)

Such gains boosted the S&P 500 higher. Of the 11 major sectors of the S&P 500, eight ended in the green, with consumer staples leading the advancers. The Consumer Staples Select Sector SPDR ETF (XLP) rallied 0.8% on Tuesday.

Economic Data

On the economic data front, the Consumer Confidence index advanced 125.9% in October, up from 10.6% in September, marking its highest reading since December 2000. The consensus estimate for the period was 120.6. Economists believe that such an improvement can be attributed to an exceptionally strong jobs market. The jobs increased to 36.3% in October.

Monthly Roundup

For the month, the Dow, the S&P 500 and the Nasdaq increased 4.3%, 2.2% and 3.6%, respectively. While, the Dow and the S&P 500 posted their seventh straight month in gains, this was Nasdaq’s fourth straight monthly gain in 2017. All the three benchmarks have posted their biggest monthly rise since February. Moreover, this also happens to be the Dow’s longest streak of such gains since April 2012 and also the longest for the S&P 500 since May 2013.

ISM Services Index in September came in at 59.8%, marking its highest level since Aug 2005. Meanwhile, the House of Representatives passed a $4.1 trillion budget bill for 2018. Moreover, the House of Representatives cleared the budget blueprint with majority of the Republicans voting in favor of the move. Further, the ECB announced plans to extend the quantitative easing program.

Meanwhile, the release of the Federal Open Market Committee minutes clearly hinted at a rate hike in December. Moreover, the minutes stated that a majority of the Fed officials voted in favor of the rate hike. Also, the unemployment rate decreased to 4.2% in September from 4.4% in August. This is its lowest level since 2000 and the report by BLS stated that this was not affected by the hurricanes.

President Trump chose not to certify Iran’s compliance with a nuclear deal struck in 2015. He reasoned that the country continued to ‘sponsor terrorism’ and in effect disrupted international peace. Meanwhile, the Dow Jones closed above 23,000 points for the first time ever in its 120-year history.

Stocks That Made Headlines

PetroChina Q3 Earnings Jump on Oil Rebound, Cost Cuts

Chinese oil and gas giant PetroChina Company Limited PTR announced third-quarter 2017 earnings. (Read More)

Clorox Trims FY18 View Despite Q1 Earnings & Sales Beat

The Clorox Company CLX posted robust first-quarter fiscal 2018 results, wherein both top and bottom line topped estimates and grew year over year. (Read More)

Frontier Communications Q3 Loss Narrower Than Expected

Frontier Communications Corp FTR reported mixed financial results in third-quarter 2017. (Read More)

C.H. Robinson Q3 Earnings & Revenues Beat Estimates

C.H. Robinson Worldwide Inc.’s CHRW third-quarter 2017 earnings per share which beat the Zacks Consensus Estimate. (Read More)

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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
Clorox Company (The) (CLX) : Free Stock Analysis Report
 
Frontier Communications Corporation (FTR) : Free Stock Analysis Report
 
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