Investment Commentary –September 12th, 2017

Market Indices as of Market Close September 12th, 2017

Dow 22,118 (11.92% YTD)
S&P 2,496 (11.51% YTD)
NASDAQ 6,454 (19.90% YTD)
Global Dow 2,890 (14.34%)
Gold $1,335 (14.57%)
OIL $48.28 (-15.22%)
US 10Y Treasury 2.166 (-27.99%)
Barclay Bond Aggregate (3.662% YTD)

Wall St. set to open lower on Apple, North Korea worries

Wall Street was set to open slightly lower on Wednesday, after a two-day rally, weighed down by a drop in Apple and as North Korea showed a trademark defiance over new U.N. sanctions.
Apple’s (AAPL.O) shares fell 0.83 percent in premarket trading after the highly-anticipated iPhone X was launched with a pricey $999 tag and a Nov. 3 shipping date that raised questions about supply constraints ahead of the holiday season.

The stock ended lower after a volatile session on Tuesday. But, the drag by Apple was more than offset by a rise in bank stock, helping the three major Wall Street indexes close at record highs.

Wall Street has been eking out record highs for most of this year, recovering from periodic setbacks caused by turmoil in Washington, questions over U.S. interest rate hikes and doubts about the Trump administration to push through its pro-business reforms, and lately, tensions over North Kore

Dimon calls bitcoin ‘a fraud’ and may have delivered the biggest blow to the digital currency

J.P. Morgan Chase & Co. boss Jamie Dimon just leveled one of the harshest criticisms about bitcoin and the broader digital-currency sector to date.

Speaking at a banking industry conference organized by Barclays BCS, +3.16% Dimon compared the rapid ascent of bitcoin with the 17th century mania over tulip bulbs—viewed as a classic, textbook bubble—and predicted that things may end just as badly for investors in the decentralized currency, which has been surging over the past year.

“Bitcoin will eventually blow up. It’s a fraud. It’s worse than tulip bulbs and won’t end well,” Dimon said.
Dimon also said he would fire any trader trading bitcoin for being “stupid.”

News around the web

Debt ceiling deal

Anxiety over one of the market’s current short-term risks eased as President Trump reached a deal with Democratic leaders on the government’s debt ceiling. The agreement, which won House approval on Friday, suspends the borrowing limit until December 8, maintains government funding until that date, and provides hurricane relief aid.
Euro outlook brightens

The European Central Bank on Thursday kept interest rates and its bond-buying program unchanged, but it raised its economic growth forecast for the Eurozone. The euro strengthened, gaining nearly 1%, and European government bonds rallied.

On Tap for the rest of the week:

Wednesday: Federal budget, U.S. Department of the Treasury
Friday: Retail sales, business inventories, U.S. Census Bureau


Leaders this past week include Healthcare, Financials and Industrial Goods.

This day in financial history: 1996 Another Record Breaking Day

On this day in 1996 the Dow Jones had another record-breaking day. The Dow closed the day at 5,771.94 points but at one point was as high as 5,778 points.

The views presented are not intended to be relied on as a forecast, research or investment advice and are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investments.