logo-loader

US stocks gain, S&P 500 chalks best quarter since 2015

Last updated: 16:58 30 Sep 2016 EDT, First published: 03:58 30 Sep 2016 EDT

US stocks open firmer on benign inflation while beleaguered Deutsche Bank soars

US stocks posted a strong gain on Friday and the S&P 500 bellwether marked its best quarterly close this year.

The S&P 500 index closed up 0.8% at 2168 – 25 points off its record high close in mid-August – but at 3.3% registering its best quarterly gain since the final quarter of 2015.

A combination of intraday gains from banks on rumours that US regulators may strike a deal to commute Deutsche Bank’s (NYSE:DB) fine to $5.4bn from $14bn, as well as gains by oil stocks as the fuel’s price continued to climb as well as tech stock advances, all helped to boost the S&P on the day, and on the quarter.

Southwestern Energy Company (NYSE:SWN) led the gainers, up 4.9% to $13.84.

The US oil benchmark West Texas Intermediate was up 0.5% at $48.09 – the first time it had broken above $48 a barrel in five weeks.

The S&P Midcap 400 ended up 0.8% at 1552 and led by Lexmark International (NYSE:LXK) up 13.8% at $39.96.

The S&P Smallcap 600 finished up 1.1% at 756 and led by Emergent BioSolutions (NYSE:EBS) up 13.6% at $31.53.


Open

US stocks rose on Friday thanks to still-subdued inflation numbers and a hurl higher by the shares of beleaguered Deutsche Bank (NYSE:DB).

On Thursday, DB shares hit a fresh record low in Europe.

The session started positively, thanks to a measure of core inflation closely-watched by the Federal Reserve only inching up in August. The core personal consumption expenditure index hit 1.7% last month, but still below the central bank’s 2% target. The last time this indicator touched the 2% trigger zone was way back in 2012.

The market bellwether S&P 500 was up 0.6% in early trades, at 2164, while Deutsche Bank advanced by 6% to $12.18. It had been up more than 3% pre-market.

Deutsche Bank has had a rough week because it may have a $2tln balance sheet, but it is likely to struggle paying a US regulators’ fine of $14bn unless the German government provides aid. So far, with parliamentary elections looming next September, Berlin is unwilling to promise to bail out the country’s biggest lender.

Oil prices, flat before the opening, were up 0.4% at $48, according to the US benchmark, the West Texas Intermediate.

The S&P 500 was led higher by cash-and-carry operator Costco Wholesale Corporation (NASDAQ:COST) which rose by 4.3% to $153.77 after reporting quarterly profit of $1.77 per share for its latest quarter, beating estimates by four cents a share. Revenue was very slightly below forecasts, however. Comparable-store sales were flat, but registered a 3% increase when gasoline and foreign exchange considerations are excluded. Costco's results were helped by lower costs for its new credit card deal with Visa (NYSE:V).

The S&P Midcap 400 was up 0.4% at 1545 and led higher by Lexmark International (NYSE:LXK).  The office printers company was up 13.7% to $39.93. Analysts earmarked this stock for gains after a mid-week sell-off.

The S&P Smallcap 600 was up 0.3% at 751 and led by Emergent BioSolutions (NYSE:EBS) up 8.9% to $30.22 after providing an update on the status of its 2011 BioThrax (Anthrax Vaccine Adsorbed) procurement contract and the status of its discussions with the Centers for Disease Control and Prevention (CDC) for a follow-on procurement contract for BioThrax.


Pre-Open

US stocks are indicated to open firm on Friday on still-subdued inflation numbers – despite bank stocks on watch after shares of Germany’s biggest lender hit a record low the previous session.

A measure of core inflation closely-watched by the Federal Reserve inched up in August, but still remains below its 2% target. The core personal consumption expenditure index hit 1.7% last month, up from 1.6% in July and in line with analysts’ forecasts. The last time this indicator touched the 2% trigger zone was way back in 2012.

The market bellwether S&P 500 is indicated opening up 0.02% on Friday.

Oil prices were flat as the Netherlands on Friday, at $47.83, according to the US benchmark, the West Texas Intermediate.

But Deutsche Bank (NYSE:DB) may have a $2tln balance sheet, but it is likely to struggle paying a US regulators’ fine of $14bn unless the German government provides aid. So far, with parliamentary elections looming next September, Berlin is unwilling to promise to bail out the country’s biggest lender.

Dramatically, the Deutsche Bank CEO has accused markets of trying to weaken his bank.

In an internal memo, John Cryan made an appeal for calm, telling employees that worries over the bank's financial health are vastly overstated.

"Our bank has become subject to speculation," John Cryan said in a letter to staffers that outlined the bank's financial position and urged employees to not allow a "distorted perception" from interrupting its business.

But with Deutsche Bank shares up 3.3% at $11.86 pre-market there is a chance that the gains will stay through the session.

Cash-and-carry operator Costco (NASDAQ:COST) was  up 2.7% at $151.50 pre-market after reporting quarterly profit of $1.77 per share for its latest quarter, beating estimates by four cents a share. Revenue was very slightly below forecasts, however. Comparable-store sales were flat, but registered a 3% increase when gasoline and foreign exchange considerations are excluded. Costco's results were helped by lower costs for its new credit card deal with Visa (NYSE:V).

 

Ramp Metals Launches Drilling Program in Pursuit of High-Grade Nickel in...

Ramp Metals CEO Jordan Black joined Steve Darling from Proactive to introduce the company to the public domain and share exciting developments in the mining industry. With a background as a geotechnical engineer and experience in venture capital, including a notable role in taking GoldSpot...

52 minutes ago