Hello traders everywhere. All three indexes are positioned to post record closes today on the back of a passed budget by the U.S. government and renewed hopes of tax reform. The dollar and Treasury yields are heading higher as President Trump closes in on naming the next Fed chair. Will Janet Yellen, the sitting chairman, survive or will we get a new chair? Check out INO.com Contributor George Yacik's article on the looming decision.
Meanwhile, sales of previously owned U.S. homes increased unexpectedly in September, showing demand is stabilizing in the aftermath of hurricanes Harvey and Irma. The National Association of Realtors said on Friday existing home sales rose 0.7% to a seasonally adjusted annual rate of 5.39 million units last month. August’s sales pace was unrevised.
Economists polled by Reuters had forecast that sales would fall 1% to a rate of 5.30 million units last month. Sales were down 1.5% from September 2016, the first year-over-year decline since July 2016.
Hello traders everywhere. Netflix Inc. (NASDAQ:NFLX) is expected to release its third-quarter earnings shortly after the bell this afternoon. Netflix's stock hit a record high last week after analysts at Goldman Sachs predicted the company would post subscriber gains above expectations and raised their price outlook from $200 to $235, while JP Morgan's analyst raised their forecast to $225 from $210.
Netflix revenue for Q3 2017 is expected to be $2.97 billion, according to a Thompson Reuters consensus estimate.
EPS is projected at 32 cents, per a Thomson Reuters consensus estimate.
The strong growth is based on continued subscription additions, despite price increases.
Shares traded above $200 for the first time Friday and continue to trade above that level today. Netflix Inc. (NASDAQ:NFLX) raised some of its prices earlier this month, including for its high-definition plan and 4K streaming plan. Despite the price increase, analysts believe subscribers will stick with the company and are bullish on its international growth.
Hello traders everywhere. The stock market hit new highs today on renewed hopes of tax reform and solid overall economic data. However, a fight between President Donald Trump and U.S. senator Bob Corker raises questions about the likelihood of a plan moving forward.
President Trump has weighed in by saying that his fight with Senator Corker will not interfere or delay the passing of tax reform. I guess we'll have to wait and see.
Oil and gold are both on the rise today as well. Oil is heading higher on news that the world's biggest crude exporters - Saudi Arabia and Russia - may extend or deepen supply cuts and have urged U.S. shale producers to join them.
Meanwhile, gold touched its highest price in nearly two weeks, supported by a softer dollar and geopolitical tensions in Spain and North Korea, though gains were capped by expectations of another U.S. interest rate increase.
Hello traders everywhere. The S&P 500 and the Nasdaq reversed course to hit new record highs after U.S. Secretary of State Rex Tillerson denied reports that he had considered resigning in a press conference this morning.
Tillerson spoke after reports that Vice President Mike Pence and other top officials intervened to persuade him not to resign during the summer as tensions rose with President Donald Trump.
"I have never considered leaving this post," said Tillerson. "I am here for as long as the President feels I can be useful to achieving his objectives."
The markets seemed to have breathed a sigh of relief that Tillerson is staying in office after a drop in technology stocks had pulled down the S&P and the Nasdaq in early trading.
Meanwhile, data released this morning pointed to further strengthening of the economy. The ADP National Employment Report indicated that the private sector added a better-than-expected 135,000 jobs in September, even as Hurricane Harvey and Irma "significantly impacted smaller retailers."
The rest of the week is loaded with economic data, leading up to Friday's nonfarm payrolls report for September.