Stock Market News For April 17, 2017

Benchmarks finished in the red on Thursday following the deployment of Mother of All Bombs’ (MOAB) on ISIS tunnels in Afghanistan on Thursday. Investors, meanwhile, remained concerned on tensed relationship between U.S. and Russia following U.S. air strike in Syria and escalating tension between U.S. and North Korea. Investors also remained focused on corporate earnings results.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) declined 0.7% to close at 20,453.25. The S&P 500 fell 0.7% to close at 2,328.95. The tech-laden Nasdaq Composite Index closed at 5,805.15, declining 0.5%. The fear-gauge CBOE Volatility Index (VIX) gained 2.9% to 16.23. A total of around 3.1 billion shares were traded in NYSE on Thursday. Decliners outpaced advancing stocks on the NYSE. For 68% stocks that declined, 28% advanced. The U.S. stock market remained closed on Friday due to a holiday.

Geopolitical Tensions

U.S. dropped a GBU-43/B Massive Ordnance Air Blast bomb, known as the “Mother of All Bombs” in Afghanistan. The MOAB was targeted at ISIS tunnel network and personnel in the Achin district of Nangarhar Province. The incident further added fuel to the prevailing geopolitical concerns including U.S. attack on Syrian air base and deteriorating relations between U.S. and Russia over such an issue. Both the countries failed to come to a conclusion over the fate of Syrian President Bashar al-Assad.

U.S officials had alleged Russia of trying to cover up the ghastly sarin gas attack that left many civilians dead including children and women. However, Russian Foreign Minister Sergei Lavrov commented that Russia wasn’t convinced about such an attack in Syria. Investors remained concerned on the growing tensed relationship between U.S. and Russia.

Investors also kept a close watch on the escalating tensions between the U.S. and North Korea. Earlier, Trump had said that the U.S. is ready to deal with North Korea in case China does not come to help in this regard. Meantime, U.S. Navy sent a strike group towards the North Korean Peninsula, while North Korea warned U.S. of a possible nuclear attack in case U.S continues to threaten her security over the region.

Domestic Issues

Investors remained focused on the persistent lofty equity valuations in the market. The financials were among the best performing sector following Trump’s November election victory. However the rally stalled following Trump administration’s failure to pass a Republican-led Healthcare bill through the House of Representatives. A relatively conservative stance on rate hike outlook from the Federal Reserve had an adverse impact on investor confidence which kept financials in check.

Earnings Season

J.P. Morgan Chase (NYSE:JPM) , Citigroup (NYSE:C) , and Wells Fargo (NYSE:WFC) released their quarterly results on Thursday. J.P. Morgan Chase reported earnings of $1.65 per share, which beat the Zacks Consensus Estimate of $1.51.JPMorgan recorded revenues of $25.6 billion, which surpassed the Zacks Consensus Estimate of $24.6 billion. Citigroup came out with earnings of $1.35 for the quarter outpacing the Zacks Consensus Estimate of $1.24.Citigroup’s revenues of $18.12 billion outpaced the Zacks Consensus Estimate of $17.81 billion.

In the mean time, Wells Fargo reported adjusted earnings of $1 per share, outpacing the Zacks Consensus Estimate by 3 cents. However, the company’s total revenue for the quarter was $22.0 billion, lagging the Zacks Consensus Estimate of $22.1 billion. Among other Wall Street giants, U.S. Bancorp (USB) is scheduled to report first-quarter 2017 earnings on Apr 19, while Comerica Inc. (NYSE:CMA) will report on Apr 18.

Some of the key holdings of the financial sector in S&P 500 including JPMorgan Chase and Wells Fargo & Co declined by 1.1% and 3.3% respectively. The broader Financial Select Sector SPDR (XLF) declined 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Weekly Results

For the week, the Nasdaq, S&P 500 and Dow declined 1.2%, 1.1% and 1% respectively. During the week, the benchmarks suffered a setback after rise in geopolitical tensions. Trump’s comment on dollar valuation also had an adverse impact on the investor sentiments which eventually led the benchmarks to finish in the red. The weekly first-time jobless claims declined in the last week, falling to 234,000. Meanwhile, Trump’s remarks on revamping the Dodd-Frank law helped stocks pare losses.

Stocks that made Headlines

ConocoPhillips (NYSE:COP) Divests San Juan Basin Assets for $3 Billion

ConocoPhillips (NYSE:C) recently entered into a definitive agreement to divest its interest in the San Juan Basin to an affiliate of Hilcorp Energy Company for about $3 billion of total proceeds. (Read More)

Facebook's Messenger App Crosses 1.2B Monthly Active Users

With each passing day, Facebook Inc. (NASDAQ:FB) is achieving a new milestone. (Read More)

Hanesbrands Issues Preliminary Q1 Results, 2017 View Intact

Hanesbrands Inc. (NYSE:HBI) came up with the first-quarter 2017 preliminary results and reiterated its projection for the full year, which was initially issued in Feb 2017. (Read More)

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>