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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (83962)	9/17/2019 5:06:01 PM
From: Return to Sender	2 Recommendations Recommended By oldbeachlvr Sam Respond to of 95487

S&P 500 closes higher in front of Fed decision tomorrow 17-Sep-19 16:20 ET Dow +33.98 at 27110.78, Nasdaq +32.47 at 8186.05, S&P +7.74 at 3005.70 briefing.com [BRIEFING.COM] The large-cap indices closed higher on Tuesday as investors looked ahead to the Fed's policy decision tomorrow. The S&P 500 (+0.3%), Dow Jones Industrial Average (+0.1%), and Nasdaq Composite (+0.4%) posted small gains, while the Russell 2000 (-0.4%) underperformed amid relative weakness in the energy space. Overall price action was muted for most of the day, but the moves within the market were much more noticeable. For instance, after spiking nearly 15% yesterday, WTI crude ($59.37/bbl, -3.15) pulled back 5.0% after Saudi Arabia said it intends on restoring full oil production by the end of September. In addition, the repo rate spiked as high as 10% today on no specific catalyst. Regarding the repo rate volatility, DoubleLine Capital founder Jeffrey Gundlach said this makes it more likely the Fed will start with asset purchases again (i.e. "QE Lite") "pretty soon." Presumably, this view, which was reported by Reuters late in the session, contributed to increased buying interest into the close. Nine of the 11 S&P 500 sectors finished higher, led by the real estate (+1.4%), utilities (+0.9%), and materials (+0.7%) sectors. The energy (-1.5%) and industrials (-0.04%) sectors were the lone sectors to finish in negative territory. Other laggards included Nordstrom (JWN 32.10, -3.47, -9.8%), Corning (GLW 28.23, -1.82, -6.1%), and Kraft Heinz (KHC 28.36, -1.26, -4.2%). Nordstrom fell alongside the retail stocks as a part of a broader effort to take monthly profits from the group. Corning cut its third-quarter sales outlook for its Display Technologies and Optical Communications segments. Kraft Heinz underperformed after 3G Capital sold 9.3% of its stake in the company. Back to the Fed, the market expects the central bank to cut the fed funds rate by 25 basis points, which would strengthen the market's improving outlook on the U.S. economy. On a related note, industrial production rebounded 0.6% m/m in August (Briefing.com consensus +0.1%) after an unexpected decline in July. Separately, the New York Fed announced a repurchase operation of up to $75 billion worth of assets in order to regain control of its fed funds rate. The midpoint of transactions in the overnight money markets hit the upper limit of the 2.00-2.25% target range. The 2-yr yield and the 10-yr yield declined three basis points each to 1.73% and 1.81%, respectively. The U.S. Dollar Index lost 0.4% to 98.22. Reviewing Tuesday's economic data, which included Industrial Production and Capacity Utilization for August and the NAHB Housing Market Index for September. Industrial production increased 0.6% m/m in August (Briefing.com consensus +0.1%), which was much stronger than expected and followed an upwardly revised 0.1% decline (from -0.2%) in July. Total capacity utilization ran at 77.9% (Briefing.com consensus 77.5%), up from 77.5% in the prior month. The key takeaway from the report is that all of the major market groups recorded gains in August, which is a reassuring development in terms of the economic growth outlook. The NAHB Housing Market Index for September increased to 68 (Briefing.com consensus 66) from 67 in August (revised from 66). Looking ahead, investors will receive the Fed's policy decision, which will include economic and interest rate path projections, Housing Starts and Building Permits for August, and the weekly MBA Mortgage Applications Index on Wednesday. Nasdaq Composite +23.4% YTD S&P 500 +19.9% YTD Russell 2000 +17.0% YTD Dow Jones Industrial Average +16.2% YTD