The stock markets continued to reach new highs driven by gains in financial and technology stocks.
As the broader stock indexes continued to make new highs, ETFs also continued to witness record inflows.
Goldman Sachs (GS) posted EPS (earnings per share) of $5.02 for 3Q17, which easily beat Thomson Reuters’ consensus estimate of $4.17.
US stocks are rising due to hopes that the Trump Administration will complete a tax deal in the near future that will substantially benefit corporates.
ETF inflows continued to trend higher last week even as the equity markets made new highs. The S&P 500 Index (SPX-INDEX) (SPY) closed at 2,553.2—up 0.86%.
Financial stocks were the biggest drag on the S&P 500—the S&P 500 Financials Index fell 0.90%. All of the major bank stocks were in the red last week.
So far, banks that reported their 3Q17 earnings showed mixed trends. JPMorgan Chase’s revenue and earnings comfortably beat consensus estimates.
Chesapeake Energy’s (CHK) production in 2Q17 was 527.6 Mboed (thousand barrels of oil equivalent per day), which was ~20% lower than Chesapeake Energy’s reported production of 657 Mboed in 2Q16.
Anadarko Petroleum’s (APC) total production in 2Q17 was 631.0 Mboed (thousand barrels of oil equivalent per day).
ConocoPhillips (COP) reported production of 1,437 thousand barrels of oil equivalent per day (or Mboed) in 2Q17, a decline of 7% compared to 2Q16 production of 1,546 Mboed.
ETF inflows bounced back to a level that hasn’t been seen since June. Around $12 billion worth of inflows were added in ETFs last week.
The stock markets have been continually making record highs. The S&P 500 (SPX-INDEX) (SPY) posted its sixth straight all-time closing high last week.
Some of the largest US banks like Citigroup (C), JPMorgan Chase (JPM), and Bank of America (BAC) will report their 3Q17 earnings this week.
Last week, US equity (JPM) (BAC) witnessed net outflows of $2.5 billion, while international equity added the highest inflows worth $2.8 billion.
Financial stocks rose last week amid the government’s plan to cut the corporate tax rate and the potential of less dovish action from the Fed.
Last week, the Republican framework was released for the proposed tax cut. It called for lowering the corporate tax rate from 35% to 20%.
With revenue growth of 6.8%, Lowe’s (LOW) outperformed Home Depot. In 2Q17, Lowe’s posted revenue of $19.5 billion—compared to 18.3% in 2Q16.
Despite the huge outflows at the start of last week, US-listed ETFs witnessed strong inflows with the addition of $7 billion, bringing the YTD total to $329.3 billion.
The S&P 500 and the Dow Jones Industrial Average closed at record highs last week on the Fed’s indication of another possible rate hike this year.
During a press conference last week, Federal Reserve Chair Janet Yellen criticized Wells Fargo (WFC) for its fake account scam.