U.S Stock market review August 2, 2017
Dow Jones Industrial Averages closed up +52.32 points (+0.24%) at 22,016.24, Nasdaq flat -0.29 points (0.00%) to 6,362.64, and S&P 500 up +1.22 points (+0.05%) to 2,477.57.
Dow Jones Industrial Averages finally reach another landmark 22,000 supported by consumer goods sector and industrial. AAPL is the leader after it records 4.73% gain to close at $157.14 on Wednesday trading session, off from $159.75 high. Overall, investors showed doubt on the stock market performance and told the market stock should reverse soon.
Overall, investors showed doubt on the stock market performance and told the market stock should reverse soon. Unfortunately, for traders and market participant who took that advice will miss the current rally. Next question to ask, is it right to buy at the current level? Maybe yes, maybe no. Reasons to stay at buy side are:
- The Fed approach with dovish tone on interest-rate and show loose stance on monetary policy
- Companies continue to spur the market with better than expected result
- U.S dollar continues its slide
Earnings & Corporate report
Sturm Ruger & Co (NYSE: RGR) slumped to as low as $47.95 (-16.89%) in after-market session. The company posted revenue of $131.9 million vs. $159.6 million expectation. EPS come out at 57 cents vs. $1.11 expectation.
Symantec Corp (NYSE: SYMC) reported earnings per share of $0.33 under $1.18 billion revenue. Consensus expects earnings per share of $0.31 under 1.2 billion revenue. Share prices initially rose to $32.8 in after market session but immediately down to close near Wednesday closing price.
Tesla (NASDAQ: TSLA) jumped from $325.89 to $350.01 (+7.4%) after the company reported earnings beat. Revenue comes out at $2.79 billion vs. $2.51 billion. Analysts expect a loss per share of $1.82 where the company reported a narrower loss of $1.33.
American International Group Inc (NYSE: AIG) recorded earnings per share of $1.53 vs. $1.20 expectation. Share prices up in After-market session, but closed back at Wednesday closing prices.
Fitbit (NYSE: FIT) posted revenue of $353.5 million vs. $339.2 million expectation. Loss per share come out at 8 cents vs. expectation loss per share of 15 cents.
Other market
Asian stock market dragged lower before BOE super Thursday. Nikkei down 50.78 points (-0.25%) to 20,029.26, China Shang Hai Composite down 11.65 points (-0.35%) to 3,273.41, and Australian ASX 200 down 9.08 points (-0.16%) to 5,735.12.
European stock market also on backseat waiting for BOE, DAX Germany, FTSE UK, and Euro STOXX 600 down 0.42%, 0.16%, and 0.09% respectively 05.14 AM EST.
What to expect on next day trading session
BOE is the main actor for today market movement. The bank showed more hawkish stance on interest-rate in the previous meeting. However, data released between previous meeting and today show UK economy might not ready for rate-hike.
The market will watch how the central bank play it out while waiting for U.S job data tomorrow. There is opinion; The Fed will play next meeting under dovish tone which could boost stock market further upside.