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January 12 Equities Commentary: Bob Iaccino

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Hi, this is Bob Iaccino coming to you from the CME Group trading floor in Chicago. And another good day for equities. DOW Jones industrial average was up 200 points through most of the day, jumped up 172 on the open finishing up about three quarters a percent. Another record high, another record close. Now, earnings are here first day of the earning season, and we had some pretty good financial earnings come out. Blackrock, JP Morgan, Wells Fargo, all beat on both top and bottom line. Blackrock was up over three percent at one point today. JP Morgan finished up over a percent and a quarter. Wells Fargo fell because they had a different sort of -- they had a higher profit based on the implications of the tax plan where most of the financial corporations that have been guiding on this are taking a tax hit. Wells Fargo has some longer duration assets that are going to be deferred in the coming years, and that affected their tax situation a little different. So their beat didn't affect the stock price the way the Blackrock or JP Morgan did. But overall, equities jumped on these three earnings beats right off the open. We had retail sales come out. Missed on the headline by one tenth, beat on the core by one tenth, so that was good news for retail. And there's also some good news on the longer term underlying trends where we saw December year over year beat by over five percent. And then the year 2017 retail sales increased by 4.2 percent versus 3.2 percent as a reference point of 2016. So that was also good. The retail sector led, consumer discretionary led, but then when you broke that down, we had department stores, online retailers, bricks and mortar lead that particular sector as well. So it was retail driven and the consumer discretion sector leading the rest of the market. Also CPI came out. And CPI was basically just right. It missed on the headline, beat a little bit on the month over month. The core CPI was a little stronger again while the headline missed estimations. But nothing that was going to drive the Fed. This was kind of a Goldilocks CPI. It did not dictate that the Fed should get more aggressive, and Philly Fed President Patrick Harker actually said as such in a speech later in the day where he described the idea of doing two interest rate hikes in 2018 being a better path than three or four. This is Bob Iaccino talking about a very strong DOW Jones close from the CME Group trading floor in Chicago.

Video Details

Duration: 2 minutes and 31 seconds
Country: Andorra
Language: English
License: Dotsub - Standard License
Genre: None
Views: 5
Posted by: cmegroup on Jan 12, 2018

January 12 Equities Commentary: Bob Iaccino

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