The S&P 500 hit a record high extending gains on Tuesday. Financials were among the leaders on the big board. The Dow was up 61 points or +0.28% to finish at 22,118. The S&P 500 climbed 8 points or +0.34% approaching the 2,500 boundary while Nasdaq went up 22 points or +0.34% to 6,454.28.
Gainers were across the board with tires (+3.10%), aluminum (+2.56%) and heavy construction (+2.12%) leading the industry groups. Laggards included water (-0.49%) and electricity (-1.75%). Restaurants and bars (-1.30%) dragged on Dow's performance as investors worried about the impact of Hurricane Irma and Hurricane Harvey on sales.
Oil price rebounded up +0.62% after OPEC said oil output fell for August suggesting cuts are having an effect. Gold slipped again down -0.01% as investors remain confident, even as the UN imposes sanctions on North Korea and the US presses China to impose stronger measures against North Korea.
- Dow 22,118.86 +0.28%
- S&P 500 2,496.48 +0.34%
- Nasdaq 6,454.28. +0.34%
- Russell 2000 1,423.46 +0.61%
- NYSE Composite 12,057.12 +0.39%
- Gold 1,335.6 -0.01%
- Oil WTI $48.35 +0.58%
- 10-Year Treasury 2.16 +0.03%
Hurricane impact expected on McDonald's and Starbucks' bottom line
McDonald's had its steepest one-day decline since July 2016 falling -3.22% on news that research company M Science forecasted weaker sales than market analysts for the fast-food company.
The hurricanes that affected Texas and Florida could have a negative impact on revenue and same-store sales domestically and suggested the company could miss consensus estimates. McDonald's has over 2,000 chains across both states.
Starbucks also fell -0.89% as investors expect a toll on sales performance post the catastrophes. It said in a letter to its partners on Monday that 400 stores closed in Texas and Louisiana will be reopened when it is safe to do so suggesting it could be many more days before "communities and our customers return to anything approaching a normal routine."
The company also closed 700 stores prior to Hurricane Irma across the Southeast and Puerto Rico which remain closed.
Starbucks warned that "like most retailers impacted by these storms, we are still assessing the impact they will have on our business and operations, but we do expect the store closures, dislocations and extraordinary hurricane-related expenses to have some impact on our current quarter financial results."
Quote of the day: “If we had a trader who traded bitcoin I’d fire him in a second for two reasons. One, it’s against our rules. Two, it’s stupid,” says Jamie Dimon, JP Morgan chief executive at a conference in New York on Tuesday. Source: Forbes