Economy

Wall Street Opens Slighly Higher on Looming Fed Outcome

Published

7 years ago

29/07/2019

By Investors Hub

The major U.S. index futures are currently pointing to a slightly higher opening on Monday following the strong upward move seen last week.

New on the merger-and-acquisition front may generate some early buying interest, although trading activity is likely to be subdued ahead of key events later this week.

The Federal Reserve?s monetary policy announcement is likely to be in the spotlight, with the central bank widely expected to cut interest rates by at least 25 basis points on Wednesday.

Assuming the Fed cuts rates as expected, traders are likely to pay close attention to accompanying statement for clues about the potential for future rate cuts.

The Labor Department is also due to release it closely watched monthly jobs report, which could also have a significant impact on the outlook for rates.

Employment is expected to climb by 170,000 jobs in July after jumping by a much bigger than expected 224,000 jobs in June, while the unemployment rate is expected to hold at 3.7 percent.

Reports on personal income and spending, consumer confidence, pending home sales, manufacturing activity and the U.S. trade deficit are also likely to attract attention in the coming days.

Stocks moved mostly higher over the course of the trading day on Friday, rebounding following the weakness seen on Thursday. With the turnaround, the Nasdaq and the S&P 500 reached new record closing highs.

The major averages all closed in positive territory, although the Nasdaq posted a standout gain amid strength in the tech sector. The Nasdaq surged up 91.67 points or 1.1 percent to 8,330.21, while the S&P 500 climbed 22.19 points or 0.7 percent to 3,025.86 and the Dow rose 51.47 points or 0.2 percent to 27,192.45.

For the week, the Nasdaq and the S&P 500 jumped by 2.3 percent and 1.7 percent, respectively, but the narrower Dow inched up by just 0.1 percent.

The rally by the tech-heavy Nasdaq was partly due to spike by shares of Google parent Alphabet (GOOGL), which soared by 9.6 percent after the tech giant reported its second quarter results.

Alphabet beat analyst estimates on both the top and bottom lines and also announced a massive $25 billion share repurchase program.

Shares of Twitter (TWTR) also surged higher after the social media giant reported better than expected second quarter earnings, revenues, and daily users.

Fast food giant McDonald’s (MCD) posted a more modest gain after reporting second quarter earnings that met expectations on stronger than expected same-store sales growth.

On the other hand, shares of Amazon (AMZN) moved to the downside after the online retail giant reported second quarter earnings that missed analyst estimates.

Semiconductor giant Intel (INTC) also turned lower despite reporting second quarter results that exceeded estimates and boosting its full-year guidance.

Traders were also reacting to a report from the Commerce Department showing U.S. economic growth slowed in the second quarter but still exceeded economist estimates.

The Commerce Department said real gross domestic product climbed by 2.1 percent in the second quarter following the 3.1 percent jump in the first quarter. Economists had expected the pace of GDP growth to slow to 1.9 percent.

The stronger than expected GDP growth reflected positive contributions from consumer spending, federal government spending, and state and local government spending.

Meanwhile, negative contributions from private inventory investment, exports, non-residential fixed investment and residential fixed investment limited the upside.

“Now in its longest expansion on record, the U.S. economy continues to look healthy,” said Oxford Economics’ Chief U.S. Economist Gregory Daco and U.S. Economist Jake McRobie.

They added, “However, given the persistent protectionist draft, the lingering policy uncertainty breeze, the sniffling global economy, and the cooling room temperature at home, now may be an opportune time for a Fed immunization shot.”

Tobacco stocks showed a substantial move to the upside on the day, driving the Dow Jones Tobacco Index up by 3.2 percent. The index rebounded strongly after ending the previous session at its lowest closing level in a month.

Significant strength also emerged among telecom stocks, as reflected by the 1.8 percent jump by the NYSE Arca North American Telecom Index.

Sprint (S) and T-Mobile (TMUS) helped lead the telecom sector higher after the Justice Department approved the $26 billion merger of the wireless giants.

Financial stocks also turned in a strong performance on the day, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index climbing by 1.5 percent and 1.2 percent, respectively.

On the other hand, natural gas stocks extended the sell-off seen in the previous session, dragging the NYSE Arca Natural Gas Index down by 2 percent to a seven-month closing low.

Economy

NASD Index Slips 1.61%, as Market Cap Drops to N2.378trn

Published

33 minutes ago

08/04/2026

Adedapo Adesanya

By Adedapo Adesanya

A 1.61 per cent fall was recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday, April 7, on the back of selling pressure.

The profit-taking chopped off N38.87 from the market capitalisation of the trading platform, leaving it at N2.378 trillion compared with the N2.417 trillion it ended last Thursday, when the bourse last witnessed trading activity.

Similarly, the NASD Unlisted Security Index (NSI) dropped 22.57 points to close the session at 3,975.34 points, in contrast to the preceding session’s 4,040.30 points.

The market breadth index was at equilibrium yesterday after recording three price gainers and three price losers, led by Okitipupa Plc, which depleted by N15.00 to N260.00 per share from N275.00 per share. Central Securities Clearing System (CSCS) Plc dipped by N6.31 to N71.69 per unit from N78.00 per unit, and FrieslandCampina Wamco Nigeria Plc went down by N1.00 to N92.00 per share from N93.00 per share.

Conversely, First Trust Mortgage Bank Plc appreciated by 20 Kobo to N2.28 per unit from N2.08 per unit, UBN Property Plc also improved by 20 Kobo to N2.18 per share from N1.98 per share, and Impresit Bakalori Plc gained 19 Kobo to sell at N2.20 per unit versus N2.01 per unit.

During the session, the volume of securities dipped by 99.7 per cent to 797,264 units from 260.2 million units, the value of securities went down by 83.1 per cent to N26.1 million from N154.2 million, and the number of deals decreased by 28.3 per cent to 33 deals from 46 deals.

Great Nigeria Insurance (GNI) Plc remained the most traded stock by value (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by CSCS Plc with 57.1 million units sold for N3.9 billion, and Okitipupa Plc with 27.5 million units valued at N1.8 billion.

GNI Plc was also the most traded stock by volume (year-to-date) with 3.4 billion units traded for N8.4 billion, followed by Resourcery Plc with 1.1 billion units exchanged for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.

Economy

Naira Falls to N1,386/$ at Official Currency Market

Published

43 minutes ago

08/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira suffered a decline of N5.87 or 0.43 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, April 7, to trade at N1,386.66/$1 compared with the previous value of N1,380.79/$1.

It was the first trading day in the local currency market after it closed last Friday and Monday for the Easter holiday.

In the same market window, the Nigerian Naira also depreciated against the Pound Sterling during the session by N13.71 to sell for N1,838.57/£1 versus N1,824.86/£1, and lost N13.69 on the Euro to quote at N1,605.61/€1 versus N1,591.92/€1.

In the black market, the Nigerian currency maintained stability against the Dollar yesterday to remain unchanged at N1,4010/$1.

Despite the recent movement, analysts remain optimistic about the outlook of the currency in 2026, citing ongoing reforms by the Central Bank of Nigeria (CBN).

The Centre for the Promotion of Private Enterprise (CPPE) said Naira stability in the first quarter of the year boosted business confidence, noting that the currency remains relatively stable during the period, trading within the N1,340 to N1,430 per Dollar band.

It attributed the stability to improved foreign exchange liquidity, stronger oil earnings, and rising external reserves, which had climbed above 50 billion dollars.

In the cryptocurrency market, prices rose after US President Donald Trump announced a two-week cease-fire with Iran, abruptly reversing days of bearish positioning.

The spike triggered roughly $595 million in crypto liquidations, with short positions making up about $427 million, marking the most aggressive short squeeze since early March. Short positions occur when investors profit from a decline in the price of an asset, so when prices rise, losses occur for the shorts.

Cardano (ADA) rose by 8.3 per cent to $0.2629, Ethereum (ETH) appreciated by 7.3 per cent to $2,249.69, Solana (SOL) added 6.6 per cent to sell for $84.67, Ripple (XRP) jumped 5.8 per cent to $1.38, Dogecoin (DOGE) expanded by 5.1 per cent to $0.0949, Bitcoin (BTC) grew by 5.0 per cent to $71,897.41, Binance Coin (BNB) increased by 3.3 per cent to $616.35, and TRON (TRX) gained 0.1 per cent to trade at $0.3160, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Local Stock Exchange Gains 0.16% on Return from Easter Break

Published

3 hours ago

08/04/2026

Dipo Olowookere

By Dipo Olowookere

The first trading session on the floor of the Nigerian Exchange (NGX) Limited after the two-day break for Easter ended on a positive note, with a 0.16 per cent rise on Tuesday, April 7, 2026.

The local stock exchange last opened its doors to investors last Thursday, and at the resumption of trading activities yesterday, market participants showed enthusiasm, mopping up shares in the banking ecosystem, and rescuing the bourse from the bears.

This returned Customs Street to the green territory, with the All-Share Index (ASI) growing by 324.21 points to 202,023.10 points from 201,698.89 points, and the market capitalisation up by N209 billion to N130.015 trillion from N129.806 trillion.

The expansion experienced during the session was inspired by three sectors, with the banking index up by 1.46 per cent, the energy space up by 0.12 per cent, and the consumer goods counter up by 0.10 per cent. But the insurance sector lost 1.37 per cent, and the industrial goods sector depreciated by 0.31 per cent.

Business Post reports that investor sentiment was bearish on Tuesday after a negative market breadth index caused by 25 price gainers and 36 price losers.

Ellah Lakes slumped by 10.00 per cent to N10.80, DAAR Communications gave up 9.95 per cent to trade at N1.72, Chams decreased by 9.87 per cent to N3.38, John Holt lost 9.71 per cent to finish at N13.95, and Sunu Assurances slipped by 9.68 per cent to N4.20.

On the flip side, Trans Nationwide Express gained 9.86 per cent to quote at N3.12, Omatek appreciated by 9.76 per cent to N2.25, Cadbury Nigeria improved by 9.53 per cent to N75.25, First Holdco rose by 9.10 per cent to N54.55, and Fortis Global Insurance chalked up 6.50 per cent to close at N1.31.

Trading data revealed that activity level improved during the session, with the trading volume up by 114.29 per cent to 1.2 billion shares from 560.0 million shares, the trading value surged by 108.81 per cent to N40.3 billion from N19.3 billion, and the number of deals soared by 57.03 per cent to 78,006 deals from 49,676 deals.

Wema Bank transacted 282.6 million equities valued at N7.3 billion, Access Holdings exchanged 125.2 million stocks worth N3.3 billion, VFD Group traded 106.8 million shares for N1.1 billion, First Holdco sold 63.0 million equities worth N3.2 billion, and GTCO exchanged 56.6 million shares valued at N7.1 billion.