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- Citi shares shrink from cost concerns, even though earnings exceeded expectations
- China's GDP at 27-year low but retail sales and industrial production exceeded expectations
- Anheuser cancels IPO for $ 10 billion
US stocks experienced a new record high on Monday, after closing at record highs last week, as investors digested Citigroup's second quarter results and expected a surge in second-quarter earnings.
What is the performance of the main benchmarks?
The Dow Jones Industrial Average
DJIA, + 0.10%
gained 27.13 points, or 0.1%, to set a new closing record at 27,359.16, the S & P 500 Index
SPX, + 0.02%
added 0.53 points, less than 0.1%, to end at 3,014.30. The Nasdaq composite index
COMP + 0.17%
rose 14.04 points to 8,258.19, up 0.2%. The three main indices recorded intraday records at the beginning of the activity, fell and then returned to positive territory at the end of the session.
On Friday, the Dow Jones gained 244.02 points, or 0.90%, to 27,332.10, while the S & P 500 index added 13.83 points, or 0.5%, to 3 013.75. The Nasdaq Composite Index closed up 48.10 points to 8,244.14, a gain of 0.6%.
What motivates the market?
Citigroup Inc.
C -0.08%
said its second-quarter profit was up 7% from last year, with a profit of $ 4.89 billion, up from $ 4.49 billion a year ago, and $ 1.95 forecast, at $ 1.81 per share.
The results also showed that revenues exceeded $ 18.76 billion, up 2% from $ 18.47 billion a year earlier and better than the $ 18.5 billion projected by Refintiv. The results were seen as potentially reflecting the resilience of the global economy as investors watch closely the signs of the impact of China-US tariff wars, an ultra-low interest rate regime and an internal slowdown in economies. world.
"Second Quarter Citigroup Profit Generates Mixed Feelings," Axel Pierron, Chief Executive Officer of Opimas, a financial markets consulting firm, says, even though earnings exceeded expectations based on strong growth from the mainstream bank, investors hoped to see the bank more aggressively tackle the weak performance of its trading business by "reducing its operating costs". [more] Significantly "than the 2% reduction in operating expenses reported for institutional clients suggests." Citigroup shares fell 0.4% on Monday midday.
Check-out: Why Citi's Senior Equity Analyst Is Concerned About Second Semester Soft-Patch
Pressure on other banking securities, led by JP Morgan
JPM, -1.21%
and Goldman Sachs
GS -1.10%
, were the two biggest hits on the Dow, according to FactSet.
In Asia, Chinese equities rose slightly on the back of numerous data showing that the world's second-largest economy has grown at the slowest pace in 27 years, although measures of industrial production and retail sales have has been better than expected, suggesting that the government's efforts to stimulate growth are finding some success.
China's gross domestic product (GDP) slowed in the second quarter to 6.2%, recording its slowest pace since 1992 – albeit mostly in line with expectations – of 6 , 4% in the first quarter. Industrial production in the country accelerated to 5.0% in June, from 5.0% to 6.3% in June, while growth in retail sales accelerated in June at 9.8%, above the consensus of 8.5%.
"GDP figures have lived up to market expectations," Carl Weinberg, chief economist at High Frequency Economics, wrote on Monday. "For serious observers of China, the title of the GDP is not very important. This is a retrospective indicator … the increase in monthly data for June is what caught our attention. "
Lily: Monitoring results: second-quarter figures are worrying, trade fears weigh
President Donald Trump welcomed the economic slowdown in China on Monday, saying it would lead to more favorable trading conditions for the world's second-largest economy. After two tweets, Trump said China wants to enter into a trade deal and insisted that US taxpayers pay no tariffs.
The Federal Reserve and the European Central Bank have notably pledged to implement easy money policies, suggesting that investors speculate that anticipating a new round of monetary policy stimulus from the Beijing central bank also helped to soften the outlook. the impact of a relatively low GDP impression.
Lily: Reduced rate with the stock market at all time highs? This has already been done – but here's what's different
Regarding economic data, the survey of manufacturing industries in the Empire State of the New York Fed rebounded to 4.3 in July, against 8.6 in June, and ahead of the increase of 0.5 expected by economists, according to Econoday.
See: Banks should shine among the shares of the S & P 500 this turnover
Check-out: This stock market canary has collapsed
Read: With rising trade tensions, here are 5 things to know about this season's results
What stocks are under discussion?
Actions of Symantec Corp.
SYMC, -10.68%
shares fell 10.7% after CNBC announced it had ended negotiations for the acquisition Broadcom Inc.
AVGO, + 1.03%
Gilead Sciences Inc.
BROWN, + 2.73%
announced that it would invest $ 5.1 billion to increase its stake in the Belgian biotech company Galapagos NV
GLPG, + 17.16%
GLPG, + 18.77%
Galapagos shares rose 18.8% in Amsterdam.
Actions of Anheuser-Busch InBev SA
BUD, + 1.86%
after the seller of Budweiser canceled what would have been the largest public offering of the year, saying it would not proceed to the listing of nearly $ 10 billion of its activities in Asia. The Anheuser stock gained 1.86%.
How are other markets traded?
10-year Treasury Bill yield
TMUBMUSD10Y, -0.13%
decreased from 0.014% to 2.092%
In Asia, equities ended up higher, with the CSI 300 in China
000300, + 0.41%
0.4%, the Nikkei 225 from Japan
NIK -0.39%
+ 0.2% and Hong Kong's Hang Seng Index
HSI, + 0.29%
up 0.2%. European shares were slightly higher, with the Stoxx Europe 600
SXXP, + 0.23%
slightly higher by 0.4%.
In commodity markets, crude oil prices
CLQ19, -0.25%
decreased 1.54% to $ 59.27. Gold price
GCQ19, + 0.18%
increased 0.35% to $ 1,417.30.
The US dollar
DXY, + 0.00%
0.14% higher, as measured by the ICE US Dollar Index.
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