Daily Market View
Thursday, July 05, 2018
| U.S Stock Market
U.S stock futures moved higher yesterday in a holiday-shortened session, though losses across other global markets due to trade tensions could make those gains tough to hang onto. American stock markets and the bond market were shut for the Independence Day holiday, and there are no economic releases expected, as federal agencies are closed. Volumes may be lower than usual for futures trading, as well. Dow Jones Industrial Average futures rose 64 points, or 0.3%, while S&P 500 futures added 8.45 points, or 0.3%. Nasdaq-100 futures put on 27 points, or 0.4%. On Tuesday, the Dow Jones Industrial Average closed 132.36 points, or 0.5%, lower. The S&P 500 ended down 0.5%, with the technology sector leading the declines with a 1.4% drop, while the NASDAQ Index declined 0.9%. Trading volumes were lower than normal ahead of the Fourth of July holiday, and markets closed three hours earlier than normal. Tuesday’s losses for U.S stocks accelerated toward the end of the session, and Asia picked up the baton on losses yesterday, as trade war worries persisted.
|Major Economic Releases for Today|
|German Factory Orders n.s.a. (YoY)||06:00||1.7%||-0.1%|
|Switzerland Consumer Price Index (YoY)||07:15||1.1%||1.0%|
|Markit Germany Construction PMI||07:30||53.9|
||BOE Governor Carney Speaks in Newcastle||10:00|
|U.S ADP Employment Change||12:15||190k||178k|
|U.S Initial Jobless Claims||12:30||225k||227k|
|U.S ISM Non-Manufacturing/Services Composite||14:00||58.2||58.6|
|DOE U.S. Crude Oil Inventories||15:00||-9891k|
|U.S FOMC Meeting Minutes||18:00|
|Dow Jones Industrial Average
The Dow Jones Industrial Average fell 0.54% yesterday. The best performers of the session on the Dow Jones Industrial Average were Johnson & Johnson, which rose 0.93% or 1.13 points to trade at 122.71 at the close. Meanwhile, Exxon Mobil Corp added 0.59% or 0.48 points to end at 82.24 and Verizon Communications Inc. was up 0.56% or 0.28 points to 50.70 in late trade. The worst performers of the session were Nike Inc., which fell 2.64% or 2.07 points to trade at 76.28 at the close. Caterpillar Inc. declined 1.80% or 2.46 points to end at 133.83 and Apple Inc. was down 1.74% or 3.26 points to 183.92.
The tech heavy NASDAQ index declined 0.86%. The top performers on the NASDAQ Composite were Anavex Life Sciences Corp which rose 43.61% to 3.820, Micronet Enertec Technologies Inc. which was up 31.71% to settle at 1.620 and Juniper Pharmaceuticals Inc. which gained 31.61% to close at 11.450. The worst performers were Black Box Corporation which was down 62.96% to 0.75 in late trade, SAExploration Holdings Inc. which lost 25.22% to settle at 1.720 and Tintri Inc. which was down 24.25% to 0.21 at the close.
Oil held near three-year highs on U.S Independence Day as tight supplies at home and abroad overshadows a Saudi pledge to boost output. Futures gained 0.3 percent in New York, extending crude’s 15 percent rally since early June. The American Petroleum Institute was said to report that U.S inventories dropped by 4.51 million barrels last week and a Bloomberg survey also estimates a decline. Meanwhile, Saudi Energy Minister Khalid Al-Falih reiterated that OPEC and its allies will boost output by 1 million barrels a day, which may not suffice to cover shortfalls elsewhere. While U.S. President Donald Trump continued to push Saudi Arabia to pump more than it pledged and reduce petroleum prices for consumers, Morgan Stanley raised its Brent crude forecast to $85 a barrel next year. West Texas Intermediate crude for August delivery rose 19 cents to $74.33 a barrel on the New York Mercantile Exchange, holding near a three-year, intraday high of $75.27 on Tuesday.
|Precious and Base Metals
Gold rose to a one-week high yesterday, extending the prior session’s rebound from a seven-month low, helped by a softer U.S. dollar and smoldering trade policy tensions, though the prospect of the Federal Reserve raising interest rates further may limit gains. The U.S. dollar index fell against a basket of major currencies, while the Chinese Yuan rose for a second day with central bank support, after seeing an 11-month low this week. A weaker U.S dollar makes dollar-priced gold cheaper for non-U.S investors. Gold has been trending lower for several weeks and this being (U.S) non-farm payrolls (week) the dollar is likely to remain in range, so people are taking profit on dollar and gold positions. Spot gold was up 0.3 percent at $1,256.20 an ounce after touching $1,261.10, a one-week high. The yellow metal has gained over $20 from Tuesday’s low of $1,237.32 an ounce, its weakest since Dec. 12. U.S gold futures for August delivery rose 0.4 percent to $1,258.10 in a shortened session and will not have a settlement price due to the U.S. Independence Day holiday yesterday. Investors are now looking to minutes of the June U.S. Federal Reserve meeting due for publication today and the U.S. non-farm payrolls and unemployment data on Friday for further cues on monetary policy. Markets are pricing in two more Fed interest rate hikes for 2018. World stocks were flat amid growing anxiety ahead of Washington’s end of week deadline to impose tariffs on Chinese imports. Since the trade wars have been doing the rounds, if anything we’ve seen gold come lower. But if it continues to escalate gold could go only one way and that’s higher. China is putting pressure on the European Union to issue a strong joint statement against U.S. President Donald Trump’s trade policies at a summit later this month but is facing resistance, European officials said. Gold is often regarded as a safe haven during times of and financial uncertainty. Silver was 0.1 percent higher at $16.03 an ounce.
Wheat, Corn and Soybeans
Wheat futures rebounded on Tuesday from the steepest percentage decline in nearly a year during the previous trading session on worries about weather-reduced crops in several key production areas around the world.
|Futures Settlement Price Wednesday, July 04, 2018|
|S & P 500||SPM18||2713||2724||2710.75||2722.5||9.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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