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JPMorgan Chase, Walt Disney Help S&P 500 Close Above 2900
12-Apr-19 16:20 ET
Dow +269.25 at 26412.30, Nasdaq +36.80 at 7984.16, S&P +19.09 at 2907.41

https://www.briefing.com/investor/markets/stock-market-update/2019/4/12/jpmorgan-chase-walt-disney-help-s-and-p-500-close-above-2900.htm

[BRIEFING.COM] The S&P 500 gained 0.7% on Friday, as a strong earnings report from JPMorgan Chase (JPM 111.21, +4.98, +4.7%) and a buoyant response to Walt Disney's (DIS 130.06, +13.46, +11.5%) upcoming streaming service helped offset losses from the health care stocks. Friday's advance also helped the benchmark index close above the 2900 level for the first time since early October.

The Dow Jones Industrial Average gained 1.0%, the Nasdaq Composite gained 0.5%, and the Russell 2000 gained 0.4%.

JPMorgan kicked off the first quarter earnings-reporting season with record revenue and net income, fueling broad-based gains in the S&P 500 financial sector (+1.9%). Wells Fargo (WFC 46.49, -1.25, -2.6%) and PNC Financial Services (PNC 132.70, +3.98, +3.1%) also provided better-than-expected results, but Wells Fargo lowering its outlook for FY19 net interest income sent shares lower.

In addition to the positive results, optimism about the economic environment from JPMorgan CEO Jamie Dimon, and a rebound in Chinese March exports, helped boost investor sentiment.

Shares of Disney surged to an all-time high after the company impressed investors with the details of its Disney+ streaming service Thursday evening. DIS was resumed with an Overweight rating at JP Morgan with a price target of $137. The announcement and the overwhelmingly positive response contributed to a 4.5% decline in Netflix (NFLX 351.14, -16.51).

The S&P 500 energy sector (+0.2%) was another area of interest after Chevron (CVX 119.76, -6.23, -4.9%) announced plans to acquire Anadarko Petroleum (APC 61.78, +14.98, +32.0%) for $65 per share, or $33 billion, in cash and stock. The 39% premium from APC's Thursday closing price fueled gains in smaller energy companies, which helped offset weakness from Chevron.

Health care stocks, meanwhile, continued to fall out of favor. Continued uncertainty about the fate of the Affordable Care Act and increasing threats from lawmakers to curb rising drug costs weighed heavily on the space. The S&P 500 health care sector lost 1.0%.

U.S. Treasuries were under selling pressure, which drove yields noticeably higher. The 2-yr yield increased four basis points to 2.39%, and the 10-yr yield increased six basis points to 2.56%. The U.S. Dollar Index lost 0.2% to 96.96. WTI crude increased 0.4% to $63.91/bbl.

Reviewing Friday's economic data, which included Import and Export Prices for March and the preliminary University of Michigan Index of Consumer Sentiment for April:

Import prices increased 0.6% month-over-month in March after increasing an upwardly revised 1.0% (from 0.6%) in February. Excluding fuel, import prices declined 0.2% in March. Export prices rose 0.7% for the second straight month. Excluding agricultural exports, they were also up 0.7%.
The key takeaway from the report is that nonfuel import prices were down 0.8% for the 12 months ending March while non-agricultural export prices were up just 1.0%. In other words, there was no real inflation pressure from a broader standpoint.
The preliminary April reading for the University of Michigan Index of Consumer Sentiment hit 96.9 (Briefing.com consensus 97.6), down from the final reading of 98.4 for March.
The key takeaway from the report is that despite low inflation, consumers have increasingly voiced complaints about rising vehicle and home prices.

Looking ahead, investors will receive the Empire State Manufacturing Survey for April and Net Long-Term TIC Flows for February on Monday.

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