|Day's Range||2,754.63 - 2,764.17|
|52 Week Range||2,405.70 - 2,872.87|
Goldman raising their estimates for S&P 500 earnings for each of the next three years, but not their price targets.
Yahoo Finance’s Seana Smith and Jared Blikre bring you the latest market analysis and break down the biggest stories moving stocks in midday trading Thursday.
Goldman Sachs analysts think corporate profits will be better than their initial forecasts for the next three years. But that might not translate into a stock market that accelerates to new records.
On June 14–21, US equity indexes’ correlations with US crude oil August futures were: S&P Mid-Cap 400 Index (IVOO) at 49.8% Dow Jones Industrial Average Index (DIA) at 29.9% S&P 500 Index (SPY) at 22.5%
Are Fund Managers Optimistic about US despite Trade War Concerns? In the previous part of this series, we discussed that the world’s two largest economies, the US (QQQ) and China, are imposing import tariffs on each other’s products. After two rounds of trade negotiations in May 2018, the US (SPY) announced on June 18 that it will impose additional import tariffs on Chinese goods.
Shares of Tesla Inc. (tsla) are down 3.2% in Friday trading after Bernstein analyst Toni Sacconaghi highlighted a sharp drop in the company's services gross margins and asked about what this plunge meant for the company's automotive margins. "The key driver of the margin erosion appears to be 'Services and Maintenance,'" Sacconaghi wrote, but he and his team "struggle to find evidence as to why the COGS [cost of goods sold] of Services and Maintenance have increased exponentially...with no commensurate increase in revenues." He said that Tesla's assertion is that the company is building out services infrastructure, but that doesn't square with Bernstein's figures.
Stocks are mostly higher on Friday, with the Dow trading higher for the first time in nine days. Oil prices jump after OPEC reaches an agreement to boost oil production.
As President Donald Trump has announced and then implemented tariffs on foreign steel and aluminum, as well as an initial $50 billion of Chinese goods, his standings in polls have improved, the economy may record a GDP print north of 4% for the second quarter, and U.S. stocks (^DJI) have fared far better than Chinese ones (XSHG:000001.SS). Trump and close White House advisers such as Wilbur Ross and Peter Navarro are confident they can win a trade war if only for the straightforward logic that China exports far more to the U.S. than vice versa.
MARKET PULSE Shares of Chinese streaming company iQiyi Inc. (iq) are down 8.7% in Friday morning trading, extending their recent slide. The stock fell more than 12% in Thursday's session, marking its biggest single-day percentage drop on record.
Energy stocks lead, supported by jump in crude pricesCarMax is on the earnings docket, and the Dow industrials finally may see an up day. Energy stocks were by far the biggest gainers of the day, with the group surging after OPEC reached a deal to boost output, though not by as much as some had expected. The Dow Jones Industrial Average (^DJI) rose 125 points, or 0.5%, to 24,586.