Stock Market News For Nov 9, 2017
Benchmarks settled at new all-time high levels on Wednesday after Apple’s market value jumped over $900 billion for the first time ever. Additionally, strong quarterly revenue projections from Take-Two Interactive Software also boosted investor sentiment. However, concerns remained over the timing and implementation of Trump’s tax cut plans after Republicans lost elections to the governorship of Virginia and New Jersey on Tuesday. These factors, along with declining bond yields weighed on bank stocks.
The Dow Jones Industrial Average (DJIA) increased 0.03%, to close at 23,563.36. The S&P 500 Index (INX) rose 0.1% to close at 2,594.38. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,789.12, gaining 0.3%. A total of 7.0 billion shares were traded on Wednesday, higher than the last 20-session average of 6.5 billion shares. Advancers outnumbered decliners on the NYSE by a 1.03-to-1 ratio. On Nasdaq, a 1.05-to-1 ratio favored declining issues. The CBOE VIX decreased 1.1% to close at 9.78.
All the three key U.S. indexes reached their new all-time high levels on Tuesday for the 27th time this year. Additionally, indexes registered strong gains in the first one year of Donald Trump’s Presidency. The Dow, the S&P 500 and the Nasdaq climbed 29%, 22% and 31%, respectively since Nov 8, when Trump became the 45th President of U.S.A.
What Pushed Benchmarks Northward?
Apple Inc’s shares increased 0.8% to $176.24, its best in history after the market value of the biggest tech company settled at an all-time high level of $904.9 billion. Gains in Apple had a positive impact on broader markets.
Additionally, shares of Take Two Interactive Software Inc rose 10.6% after it projected GAAP net revenues in the band of $440–$490 million, which is higher than previously projected. For fiscal 2018, GAAP net revenues are likely to be in the band of $1.74–$1.84 billion compared with $1.62–$1.72 billion projected earlier.
Gains in Take Two Interactive boosted the performance of other online gaming stocks like Activision Blizzard, Inc. which rose 5.9%, emerging as the best performing stock in the S&P 500.
Bank Stocks Stumble
Republicans lost both Virginia and New Jersey Governorships to the Democrats late Tuesday. Republican electoral losses raised concerns over the party’s ability to implement its tax reforms.
Also, Fed officials have, in the recent past, been bullish following expansion in U.S. economy, stronger corporate profits and lower unemployment rate. Following these developments, yields for U.S. government bonds declined after increase in demand raised bond prices. Investors remained skeptic over
President Trump’s ability to implement his tax plans, which along with a fall in bond yields weighed on bank stocks, which eventually dragged the financial sector downward. The Financial Select Sector SPDR (XLF) declined 0.5%, was the biggest loser among the S&P 500 sectors.