Daily Market View
Friday, December 14, 2018
| U.S Stock Market
U.S stocks gave back most of their morning gains as of midday yesterday as investors continue to digest headlines surrounding the potential for a U.S-China trade deal. The Dow Jones Industrial Average declined 3 points, or less than 0.1%, while the S&P 500 index fell 6 points or 0.1%. The NASDAQ traded down 47 points, or 0.7%. At session highs early yesterday, the Dow was up 214 points, the S&P 15 points, while the NASDAQ briefly traded up 56 points. U.S.-China trade concerns remained at fore of investor minds, as they continue to digest headlines from earlier in the week that suggested the Chinese were ready to make significant concessions to their industrial policy and reduce tariffs on imported autos, while President Trump indicated he would intervene in the arrest of Huawei’s chief financial officer Meng Wanzhou if it would help ensure a trade deal with China. The perception of progress was tempered by news late Wednesday that China had arrested a second Canadian diplomat in apparent retaliation for Meng’s arrest.
|Major Economic Releases for Today|
||Summit of EU Leaders|
|Nikkei Japan PMI Manufacturing||00:30||52.2|
|China Retail Sales (YoY)||02:00||8.8%||8.6%|
|Japan Industrial Production (YoY)||04:30||4.2%|
|Markit/BME Germany Manufacturing PMI||08:30||51.7||51.8|
|Markit Eurozone Manufacturing PMI||09:00||51.8||51.8|
|U.S Retail Sales Advance (MoM)||13:30||0.1%||0.8%|
|U.S Manufacturing (SIC) Production||14:15||0.3%||0.3%|
|Markit US Manufacturing PMI||14:45||55.1||55.3|
|Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.29%. The best performers of the session on the Dow Jones Industrial Average were Procter & Gamble Company, which rose 2.62% or 2.46 points to trade at 96.49 at the close. Meanwhile, McDonald’s Corporation added 1.61% or 2.95 points to end at 186.43 and Merck & Company Inc. was up 1.28% or 1.00 points to 79.01 in late trade. The worst performers of the session were Nike Inc., which fell 1.87% or 1.39 points to trade at 72.93 at the close. DowDuPont Inc. declined 1.05% or 0.57 points to end at 53.78 and American Express Company was down 0.73% or 0.78 points to 106.70.
The NASDAQ index declined 0.39%. The top performers were Adial Pharmaceuticals Inc. which rose 104.93% to 4.16, Cancer Genetics Inc. which was up 55.32% at 0.365 and Pernix Therapeutics Holdings Inc. which gained 22.86% to close at 0.430. The worst performers were Applied Genetic which was down 47.10% to 3.47 in late trade, CounterPath Corp which lost 22.53% to settle at 1.410 and LogicBio Therapeutics Inc. which was down 21.77% to 9.70 at the close.
Oil prices rose yesterday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought. OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if the top producers stick to their deal, the International Energy Agency said in its monthly Oil Market Report. U.S crude inventories at Cushing, Oklahoma, the delivery point for U.S crude futures, fell by nearly 822,000 barrels in the week through Dec. 11, traders said, citing data from market intelligence firm Genscape. Stockpiles fell by 1.2 million barrels in the week to Dec. 7, disappointing some investors who had expected a decrease of 3 million barrels. The data showed stockpiles jumping by 1.1 million barrels in Cushing during that week. U.S West Texas Intermediate light crude rose 86 cents, or 1.7 percent, to $52.01.
|Precious and Base Metals
Gold eased to its lowest in nearly one week yesterday as the dollar rose and investors latched on to gains in global stocks, while palladium touched record highs on expectations of higher demand. Spot gold eased 0.2 percent to $1,243.27 per ounce, while U.S gold futures were down 0.2 percent at $1,247.50 per ounce. The dollar gained against a basket of major currencies, helped by a dip in the euro after the European Central Bank reduced growth and inflation projections for next year and said the balance of risk was tilted toward the downside. It looks like ECB President Mario Draghi was a little more dovish than expected, so we are seeing the euro currency back off and the dollar strengthening, and this is weighing on gold prices. Also weighing on bullion was an upbeat sentiment for risk, with global stock markets receiving a boost on signs of easing U.S.-China trade tensions. With equities rebounding this week, gold has fallen slightly out of favor as traders unwound their safe-haven bets. Markets would now be turning their attention to the Federal Open Market Committee (FOMC) meeting on Dec. 18-19, with the focus on the future path of interest rate hikes in 2019. If the Fed adopts a more dovish stance, we should see the dollar quickly retreat and that should give gold an opportunity to rally. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, making it cheaper for holders of other currencies. Gold’s recent breakout above the $1,240 resistance means the path of least resistance is still to the upside and it should get a lift if the dollar were to fall on the back of a dovish Fed. Among other precious metals, spot palladium was down 0.7 percent at $1,253.24 per ounce. Silver was steady at $14.73 per ounce, having hit $14.81 earlier, its highest since Nov. 2. Platinum fell 0.6 percent to $793.60.
Soybean futures fell to a one-week low yesterday as confirmation of a 1.13 million-tonnes U.S soybean sale to China failed to impress traders who are shifting their focus to burdensome U.S and global supplies. Wheat futures neared a two-month top, supported by signs of rising global prices, while corn futures were little changed.
|Futures Settlement Price Thursday, December 13, 2018|
|S & P 500||SPM18||2657.5||2675||2641||2647.75||-3.25|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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