Jumat, 21 Juni 2019

Stocks Gain Momentum, S&P 500 Hits Record Intraday High - TheStreet.com

  • The Dow Jones Industrial Average was higher Friday following reports that President Donald Trump ordered, and then rescinded, an airstrike on military installations in Iran.
  • Shares of Canopy Growth (CGC - Get Report)  tumbled after the company posted better-than expected revenue for its fiscal fourth quarter but cautioned that its recently approved deal to acquire rights for U.S. based Acreage Holdings will lead to a "materially negative." Canopy Growth is Real Money's Stock of the Day.
  • Shares of UnitedHealth Group (UNH - Get Report) advanced following a report in The Wall Street Journal that the company was ready to buy healthcare payments group Equian LLC for around $3.2 billion.

Wall Street Overview

Stocks rose Friday after fluctuating earlier in the session following reports that President Donald Trump rescinded a planned airstrike on military installations in Iran.

The Dow Jones Industrial Average rose 109 points, or 0.41%, to 26,862. The S&P 500, one day after posting a record closing high, hit an intraday record and rose 0.22% to 2,960. The Nasdaq rose 0.19%.

Trump said on Twitter Friday that he was in "no hurry" to strike Iran.

"I am in no hurry, our Military is rebuilt, new, and ready to go, by far the best in the world," Trump wrote in a tweet. "Sanctions are biting & more added last night. Iran can NEVER have Nuclear Weapons, not against the USA, and not against the WORLD!"

The planned strike, which was reported by The New York Times, was meant to take place early Friday in response to the downing of a U.S. drone patrolling the Strait of Hormuz. Trump warned Iran it had made a "big mistake" and warned of consequences to follow, but appeared to pull back from executing a military response only hours before U.S. jets were set to take off.

"We were cocked & loaded to retaliate last night on 3 different sights when I asked, how many will die," Trump said on Twitter. "150 people, sir, was the answer from a General. 10 minutes before the strike I stopped it, not...."

The Federal Aviation Administration said it has barred U.S.-registered aircraft from operating over parts of the Persian Gulf and the Gulf of Oman due to heightened tensions and military activity in the area.

LPL Financial said in a blog post that "U.S. planned retaliatory strike against Iran's shooting down an unmanned U.S. drone over international waters was called off but demonstrated possible action by the U.S. if Iran's provocative behavior persists."

"At the core of this tension, biting U.S. economic sanctions on Iran, Iran's attacks on foreign vessels (including oil tankers), involvement in Syria, and the country's enrichment of uranium," the post said, noting that West Texas Intermediate crude oil prices "have gotten a lift from intensifying Middle East conflicts but remain range bound. Brent crude is hovering around $65 a barrel after gaining a little over 1% yesterday."

Brent crude contracts for August delivery, the global benchmark, were up 86 cents to $65.31 a barrel, while West Texas Intermediate crude contracts for the same month, which are more tightly linked to U.S. gas prices, were up 58 cents a $57.65 a barrel.

"Traders in the US are taking a breather from the major upward move of the week, and now all eyes will be on the Trump-Xi Jinping meeting at the G-20 summit week," said David Madden, a market analyst at CMC Markets UK. "The latest comments we heard in relation to US-China trade were optimistic, but dealers are mindful the situation is still on going, so we might see some long positions being pared back ahead of the meeting of leaders."

Madden said the latest PMI manufacturing and services reports were "underwhelming."

"The manufacturing update was 50.1 - its lowest reading in over nine years, and the services reading was 50.7, its lowest in over three years," he said. "The updates both showed minimal growth, and it adds weight to the argument that the Fed should cuts rates later this year."

Canopy Growth (CGC - Get Report)  shares fell 6.7% to $40.76 after the company posted better-than expected revenue for its fiscal fourth quarter but cautioned that its recently approved deal to acquire rights for U.S. based Acreage Holdings (ACRGF) will lead to a charge that will have "a materially negative impact on net income in the first quarter of fiscal 2020." Canopy Growth is Real Money's Stock of the Day.

Shares of UnitedHealth Group (UNH - Get Report)   rose slightly to $248.92  following a report in The Wall Street Journal that the company is ready to buy healthcare payments group Equian LLC for around $3.2 billion.

Shares of Micron Technology (MU - Get Report)  fell 2.2% to $33.40 after an analyst at J.P. Morgan slashed his price target and earnings estimates for the memory chipmaker on expectations that the U.S. government's ban on doing business with Huawei and weak DRAM pricing will cut into the company's profits.

Carmax (KMX - Get Report) shares rose 5% to $87.11 after the used car retailer posted stronger-than-expected fourth quarter earnings as vehicle delivery gains offset a modest decline in prices.

Slack Technologies  ( WORK)  shares advanced nearly 1.6% to $38.02 following a direct listing on the New York Stock Exchange yesterday that valued the business-focused software group at $23 billion.

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https://www.thestreet.com/markets/stocks-lower-on-reports-of-aborted-u-s-airstrike-on-iran-14996709

2019-06-21 15:14:00Z
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