The Market In 5 Minutes: Dow Hits 19,000 For First Time Ever

Macro Focus

The Dow Jones Industrial Average closed above 19,000 for the first time in history, spurred by an uptick in corporate earnings and higher oil prices.

Futures for the Dow Jones Industrial Average rose 11 points to 19,004.00, while the Standard & Poor’s 500 index futures dropped 0.75 points to 2,199.75. Futures for the Nasdaq 100 index declined 2.50 points to 4,871.50.

Oil prices traded lower as Brent crude futures fell 0.01 percent to trade at $49.11 per barrel, while US WTI crude futures also fell 0.12 percent to trade at $47.97 a barrel.

USA Initial Jobless Claims for Nov 18 251.0K vs 250.0K consensus estimate. The prior reading was 235.0K.

Durable Goods Orders (MoM) for Oct 4.80% vs 1.50% estimate. Core Durable Goods Orders (MoM) for Oct 1.00% vs 0.20% estimate.

• The Markit manufacturing PMI for November will be released at 9:45 a.m. ET.
• Data on new home sales for October will be released at 10:00 a.m. ET.
• The University of Michigan's consumer sentiment index for November is schedule for release at 10:00 a.m. ET.
• The Energy Information Administration’s weekly report on petroleum inventories will be released at 10:30 a.m. ET.
• The EIA’s weekly report on natural gas stocks is schedule for release at 12:00 p.m. ET.
• The Treasury will also auction 7-year notes at 1:00 p.m. ET.
• The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.

BZ News Desk Focus

• GameStop GME Reports Q3 GAAP EPS $0.49 vs $0.47 Est., Sales $1.96B vs $1.99B Est.
• HP Enterprise HPE Reports Q4 Adj. EPS $0.61, Inline, Sales $12.5B vs $12.85B Est.
• HP Inc HPQ Sees Q1 Adj EPS $0.35-$0.38 vs $0.38 Est, FY17 Adj EPS $1.55-$1.65 vs $1.61 Est
• Deere DE Q4 EPS $0.90 vs $0.40 Est, Revenue $5.65B vs $5.38B Est
• Urban Outfitters URBN Reports Q3 EPS $0.40 vs $0.44 Est., Sales $862M vs $869M Est.
• Mentor Graphics MENT Reports Q3 Adj EPS $0.50 vs $0.41 Est, Revenues $322.5M vs $309.43M Est

Sell-Side Themes

Bank of America upgraded Camden Property Trust CPT and downgraded Essex Property Trust ESS.

Sell-Side's Most Noteworthy Calls

• Deutsche Bank downgraded Abercrombie & Fitch ANF to Sell.
• BMO Capital downgraded CBS CBS to Market Perform.
• Bernstein upgraded Carnival Corp CCL to Outperform.
• Goldman Sachs upgraded Autoliv ALV to Neutral.
• DA Davidson started First Business Financial Services FBIZ at Neutral.

Deal Talk

Del Frisco's Restaurant DFRG shares spiked higher following a report from Reuters that activist shareholder Engine Capital said the company needs to improve its business operations or find a buyer, according to sources. Engine Capital is a 1.25 percent shareholder and has the support of 0.84 percent shareholder Ancora Advisors, the sources said. Spokespersons for the parties declined comment.

In The News

President-elect Donald Trump is leaning toward asking Mitt Romney to be his secretary of state, but an internal tug of war between Romney supporters and those urging the selection of Rudy Giuliani is delaying the decision. South Carolina Gov. Nikki Haley was tapped as ambassador to the United Nations.

Twitter TWTR CEO Jack Dorsey's account was suspended briefly last night. He blamed an “internal mistake” for his account suspension, and attempting to make light of it with a call back to his, and the service’s very first tweet.

Blogosphere

"The S&P 500 just made an all-time high for the 11th time this year, and the 1134th time since 1928... The natural inclination is that now might not be the best time to put new money to work. The data doesn’t support this, at least not in the short term."

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