Novosti i prognoe: tržište kapitala od 02-08-2018

The main US stock indexes ended the session mostly in positive territory, as a significant rise in the price of Apple shares gave an impetus to the technology sector, and helped to compensate for the negative effect of the escalating trade tension between the US and China.

A certain influence on the dynamics of trading was also provided by the US data. As it became known, new orders for goods produced in the US grew during the second month in a row in June, but the plans for business expenses for equipment were not as strong as originally thought, which suggests a probable further slowdown in the third quarter. Orders for factory goods increased by 0.7%, which was supported by a high demand for transport equipment, electrical equipment, household appliances and components, as well as computers and electronic products. In May, production orders increased by 0.4%.

However, the index of business activity in New York improved significantly last month, and exceeded the average forecasts of experts. This is evidenced by a report published by the Institute of Supply Management (ISM) in New York. According to the data provided, the index, which assesses economic conditions in the manufacturing and services sectors for companies registered in New York, increased in July to 75.0 points from 55.0 points in June. It was predicted that the index will grow only to 59.4 points. The index, reflecting economic conditions in 6 months, fell to 77.8 points from 78.1 points in June.

Most of the components of DOW finished trading in the red (17 out of 30). Outsider shares were DowDuPont Inc. (DWDP, -2.28%). The leader of growth was the shares of Apple Inc. (AAPL, + 3.03%).

Most sectors of the S & P recorded a rise. The consumer goods sector grew most (+ 1.1%). The largest decrease was in the base resources sector (-0.7%).

At closing:

Index

Dow 25,326.16 -7.66 -0.03%

S&P 500 2,827.22 +13.86 +0.49%

Nasdaq 100 7,802.68 +95.40 +1.24%

U.S. stock-index futures fell on Thursday, amid escalating trade tensions between the U.S. and China. The U.S. president Trump Trump's administration confirmed intention to raise tariffs on $200 billion in Chinese imports to 25 percent from initially proposed 10 percent. According to the U.S. Trade Representative Robert Lighthizer, Trump decided to increase the duty as China refused to meet the U.S. demands and imposed retaliatory tariffs on the U.S. goods.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Nike (NKE) initiated with Overweight at Morgan Stanley

Tesla (TSLA) upgraded to Outperform from Perform at Oppenheimer

Freeport-McMoRan (FCX) upgraded to Neutral from Underperform at BofA/Merrill

DowDuPont (DWDP) reported Q2 FY 2018 earnings of $1.37 per share, beating analysts' consensus estimate of $1.29.

The company's quarterly revenues amounted to $24.245 bln, beating analysts' consensus estimate of $23.709 bln.

The company also issued upside guidance for Q3, projecting Q3 revenues of more than $20.1 bln versus analysts' consensus estimate of $19.49 bln.

DWDP fell to $67.50 (-0.68%) in pre-market trading.

Tesla (TSLA) reported Q2 FY 2018 losses of $3.06 per share (versus -$1.33 in Q2 FY 2017), worse than analysts' consensus estimate of -$2.82.

The company's quarterly revenues amounted to $4.002 bln (+43.5% y/y), beating analysts' consensus estimate of $3.935 bln.

The company also reaffirmed it still expects to achieve GAAP profitability and positive free cash flow in Q3 and Q4.

TSLA rose to $324.19 (+7.76%) in pre-market trading.