Morgans AM

US equity markets - Dow fell -120-points or -0.38%, pulling back from the record closing high (31,613.02) of the previous session but paring an earlier decline of over >300-points. The broader S&P500 shed -0.44%, retreating for a third straight session. Energy (down -2.27%) led nine of the eleven primary sectors lower. Utilities (up +0.55%) and Consumer Discretionary (+0.14%) were the only primary sectors to advance. The Nasdaq fell -0.72%, with Apple Inc down -0.9% and extending its week-to-date decline to over ~4.2%. The small capitalisation Russell 2000 index dropped -1.67%.

US equity markets mixed amid a rotation out of technology stocks and as inflation concerns continued to apply some pressure on equities - Dow added +90-points or +0.29% to a fresh record closing high of 31,613.02, recovering from an earlier decline of as much as -180-points. Verizon Communications Inc (up +5.24%) and Chevron Corp (+3.00%) were among the leading index performers Warren Buffett’s investment vehicle Berkshire Hathaway disclosed fresh stakes in both companies. The broader S&P500 dipped -0.03%, with Information Technology (down -1.03%) the worst performing primary sector and offsetting a +1.45% gain for the Energy sector. Wells Fargo and Co rallied +5.17% after Bloomberg News reported that Fed officials had signalled to the diversified financials group that they would approve its overhaul plan. Wells Fargo has been operating under several restrictions, including an asset camp, related to its fake accounts scandal under prior leadership. The Nasdaq shed -0.58%. Apple Inc fell -1.76%, with Berkshire Hathaway disclosing it had trimmed its position in the company over the past quarter by -6% to just over 887M shares. The small capitalisation Russell 2000 index fell -0.74%.

US equity markets struggled for direction after resuming trading following the Presidents Day long weekend, with traders also eyeing the latest climb in long bond yields - Dow added +64-points or +0.20% to carve out another record closing high (31,522.22). The broader S&P500 dipped -0.06%, with yield sensitive Utilities (down -1.14%), Real Estate (-1.07%) and Health Care (-1.02%) all down over >1%. Energy (up +2.26%) was once again atop the primary sector leaderboard, while Financials also traded strongly (+1.77%). The Nasdaq fell -0.34%. The small capitalisation Russell 2000 index fell -0.72%.

European bourses advanced in thin trade, with markets in the US, China, Hong Kong and Taiwan all closed for local holidays. The benchmark pan-European Stoxx 600 index (which includes UK equities) gained +1.32%, with Basic Resources (up +4.0%), Oil and Gas (+3.99%) and Banks (+3.1%) leading the advance. Germany's DAX gained +0.56% and France's CAC +1.45%. Vivendi SE soared +19.62% after the French conglomerate said it may spin out Universal Music Group (UMG) in Amsterdam and distribute 60% of the capital to investors by year end. Vivendi, which is controlled by billionaire Vincent Bollore, announced the plan on Saturday (13 February) after it completed the sale of a 10% stake in UMG to a consortium led by Tencent Holdings, which valued UMG at €30B. Ten-year bond yields in Germany, France and the Netherlands all rose to their highest level since September as reflation expectations gripped markets. In economic data, eurozone industrial production dropped -1.6% in December from a month earlier, worse than economists’ forecast for a -0.6% drop and a marked downturn after growth of +2.6% in November. The ZEW Economic Sentiment Index for the eurozone/Germany for February and a second estimate of eurozone gross domestic product (GDP) growth for the fourth quarter are released tonight AEST.

Fresh record closing highs for the benchmark US equity indices to cap another strong week ahead of the holiday long weekend, with fiscal stimulus and inflation the key broader themes - Dow added +28-points or +0.09% to 31,458.40. The Walt Disney Co erased earlier gains to close -1.7% lower despite announcing after the close of last Thursday’s (11 February) session that that its streaming platform, Disney+, surpassed 94.9M subscribers as part of its fourth quarter earnings release. Disney+ exceeded the company’s initial subscriber goal of 60M to 90M by 2024 back in November, forcing it to reforecast. The company now expects Disney+ will have 230M to 260M subscribers by 2024. The broader S&P500 rose +0.47% to 3,934.83, with Energy (up +1.40%), Materials (+1.02%) and Financials (+0.95%) logging gains of +0.9%+ and leading nine of the eleven primary sectors higher. Utilities (down 0.79%) and Real Estate (-0.06%) were the only primary sectors to close in the red. PayPal Holdings Inc rose +4.7% after several analysts raised their price targets following the payments company’s investor day last Thursday (11 February). The Nasdaq gained +0.50% to 14,095.47 The small capitalisation Russell 2000 index edged +0.18% higher. For the week, the Dow gained +1.0%, S&P500 +1.23% Nasdaq +1.73% US equity and bond markets are CLOSED tonight AEST for the Presidents Day holiday.

US equity markets lower after a choppy session - Dow added +62-points or +0.20% to 31,437.80 and a fresh record closing high, recovering from an earlier decline of as much as -150-points. The broader S&P500 dipped 0.03%. Energy (up +1.84%) returned to the top of the primary sector leaderboard, while Consumer Discretionary (down -0.94%) was the worst performer. Oracle Corp (down -0.63%) and Walmart Inc (-1.17%) closed lower following a report that a planned forced sale of TikTok’s American operations to a group that includes the two companies had been shelved indefinitely. The Nasdaq lost -0.25% after logging record closing highs for each of the previous four trading sessions, with Amazon.com Inc (down -0.56%), Microsoft Corp (-0.39%) and Apple Inc (-0.46%). However, Twitter Inc soared +13.2% after the social-media platform delivered its second-ever US$1B quarter after the close of the previous session. All three benchmark indices touched fresh record intra-day highs during the session. The small capitalisation Russell 2000 index lost -0.72%, also retreating from record highs.

US equity markets settled with modest declines, with the Dow and S&P500 snapping a six session winning streak - Dow slipped -10-points or -0.03% . The broader S&P500 dipped -0.11%, with Energy (down -1.52%) the worst performing primary sector after rallying over >4% in the previous session. The Nasdaq edged +0.14% higher to log its fifth consecutive record closing high (14,0007.70) and tenth of 2021. The NYSE FANG+TM index, which includes Facebook Inc (up +1.08%), Netflix Inc (+2.03%) and Tesla Inc (down -1.62%), rose to an all-time high. The small capitalisation Russell 2000 index rose +0.40% to a fresh record closing high of 2,299.00 and extending its year-to-date gain to over >16%.

A fresh round of record closing highs for the benchmark US equity indices as stimulus prospects and ongoing vaccine deployment continued to boost investor optimism around the pace of the economic recovery from the COVID-19 recession - Dow +238-points or +0.76% to 31,385.76. The broader S&P500 rose +0.35% to 3,915.59, with the Energy sector rallying +4.17% and leading ten of the eleven primary sectors higher. Utilities (down -0.78%) was the only sector to close in the red. Airline stocks jumped as documents showed Democrats’ stimulus proposal could include US$14B for the airline payroll assistance. American Airlines Group Inc popped +3.37%, while United Airlines Holdings +5.2% and Delta Air Lines Inc +5.1%. Both the Dow and S&P500 logged their sixth consecutive session of gains, marking their longest winning streak since August last year. The Nasdaq gained +0.95% to 13,987.64 The small capitalisation Russell 2000 index rallied +2.53% to 2,286.62and is up ~16% calendar year-to-date.

US equity markets advanced, with both the S&P500 and Nasdaq logging fresh record closing highs for a second straight session as sentiment was buoyed by a combination of corporate earnings optimism, stimulus talks and progress on COVID-19 vaccine rollouts - Dow added +92-points or +0.30% to 31,148.24, just shy of its 20 January closing record of 31,188.38. Nike Inc (up +3.19%) and Cisco Systems Co (+1.76%) were among the leading index performers. The broader S&P500 rose +0.39% to 3,886.83, logging its seventh record closing high year-to-date. Materials (up +1.71%), Communication Services (+0.95%), Energy (+0.92%) and Consumer Discretionary (+0.92%) rose 0.9%+ to lead ten of the eleven primary sectors higher. Information Technology (down -0.22%) was the only sector to close in the red after hitting a record high earlier in the session. Both the Dow and S&P 500 rose for a fifth straight session in their longest streak of gains since August. The Nasdaq gained +0.57% to 13,856.30, the eight record closing high for the technology-centric index year-to-date. The small capitalisation Russell 2000 index rose +1.4%.

US equity markets rallied, with the both the S&P500 and Nasdaq settling at fresh record closing highs - Dow gained +332-points or +1.08% . The broader S&P500 rallied +1.09% to settle at a record closing high of 3,871.74, with Financials (up +2.28%) leading ten of the eleven sectors higher as Treasury yields climbed. Materials (down -0.54%) was the only primary sector to close in the red. eBay Inc and PayPal Inc (+%) rallied after posting strong results The Nasdaq gained +1.22% to log a record closing high of 13,777.13. Apple Inc rose +2.58% after CNBC reported that it is close to finalizing a deal with Hyundai-Kia to produce driverless cars. The small capitalisation Russell 2000 index gained +1.98% to also register a record close.