Dow hits all-time intraday high, builds on record-setting week

Xavier Trudeau
Août 7, 2017

For the second consecutive week, the Dow performed the best. The NASDAQ closed slightly lower and the S&P fell between the two with its modest gain.

Analysts, on average, expect S&P 500 earnings to have expanded 12 percent in the second quarter and project earnings up 9.3 percent for the September quarter, according to Thomson Reuters I/B/E/S.

The Dow closed at a record high for the eighth straight session on Friday, powered by a robust July employment report that showed U.S. employers added more jobs than expected in the month.

Apple, Facebook and Nvidia were the top boosts on the S&P and the Nasdaq. While the Nasdaq climbed 32.21 points or 0.5 percent to 6,383.77, the Dow edged up 25.61 points or 0.1 percent to 22,118.42 and the S&P 500 rose 4.08 points or 0.2 percent to 2,480.91. It's up 10.6% for the year. It has gained 18.0% so far this year.

Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Biopharmaceutical company Horizon Pharma (HZNP) also posted a standout gain after reporting better than expected second quarter results and providing upbeat guidance.

Providing support from the economic side, the US government reported the economy added 209,000 jobs in July, this was higher than the 183,000 consensus estimate.

The economic calendar for this week is relatively quiet, although traders are likely to keep an eye on remarks by several Federal Reserve officials.

In the USA, the major report is Friday's Consumer Inflation report.

The report said non-farm payroll employment surged up by 209,000 jobs in July after spiking by an upwardly revised 231,000 jobs in June.

However, a lack of major US economic data kept some traders on the sidelines ahead of reports on producer and consumer price inflation and labor productivity and costs in the coming days. Core CPI is expected to increase 0.2%, up from 0.1%.

Stronger-than-expected CPI data will increase the chances of another Fed rate hike later in the year.

Washington is on vacation for roughly the next three weeks. The big concern for investors is the Trump administration's links to Russian Federation and its alleged attempt to influence the US election.

Traders may also have been reluctant to make significant moves amid geopolitical uncertainty after the United Nations imposed stringent new sanctions on North Korea for its escalating nuclear and missile programs. News that China may lean harder on North Korea could actually be a positive.

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