17 Jul 2018

Daily  Market View

Tuesday, July 17, 2018

          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25041 2796.75 7323.25
+0.18% -0.10% -0.26%

The Dow industrials bucked the trend of an otherwise downbeat session yesterday as upbeat economic data and a fresh round of quarterly results failed to stoke buying appetite. Investors also watched President Donald Trump and Russian President Vladimir Putin convene for a summit in Helsinki, Finland but reaction to a joint conference with the two leaders was muted. The Dow Jones Industrial Average rose 44.95 points, a rise of 0.2%, thanks partly to gains in shares of components JPMorgan Chase & Co. and Goldman Sachs Group Inc. The blue-chip benchmark has gained seven of the past eight sessions and 10 of the past 12. The S&P 500 index meanwhile, fell 2.88 points, a loss of 0.1%. Financials led the gains, rising 1.8%, but that advance was counterbalanced by losses in energy shares, which slid 1.2%, and materials and health-care sectors, which declined 0.8% and 0.7% respectively. The NASDAQ Index declined by 20.26 points, or 0.3%. U.S. retail sales rose 0.5% in June, as had been expected. Separately, the Empire State Index fell 2.4 points to 22.6 in July.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jul

RBA July Meeting Minutes 01:30    

jun

China New Home Prices (MoM) 01:30   0.8%

 

BOE’s Carney, Cunliffe, Stheeman Speak on Financial Stability 08:00    

jun

U.K Claimant Count Rate 08:30   2.5%

jun

U.K Jobless Claims Change 08:30   -7.7k

may

U.K Average Weekly Earnings (3M/YoY) 08:30 2.5% 2.5%

jun

U.S Industrial Production (MoM) 13:15 0.5% -0.1%

jul

U.S NAHB Housing Market Index 14:00 69 68

 

U.S Powell to Deliver Semi-Annual Testimony Before Senate Panel 14:00    
Dow Jones Industrial Average

The Dow Jones Industrial Average added 0.18% yesterday. The best performers of the session on the Dow Jones Industrial Average were JPMorgan Chase & Co, which rose 3.97% or 4.22 points to trade at 110.58 at the close. Meanwhile, Goldman Sachs Group Inc. added 2.22% or 5.03 points to end at 231.44 and Cisco Systems Inc. was up 1.72% or 0.72 points to 42.50 in late trade. The worst performers of the session were Caterpillar Inc., which fell 1.90% or 2.67 points to trade at 138.08 at the close. Exxon Mobil Corp declined 0.98% or 0.82 points to end at 82.49 and Johnson & Johnson was down 0.98% or 1.24 points to 124.69.

 

NASDAQ 100

The tech heavy NASDAQ declined 0.26% yesterday. The top performers were MER Telemanagement Solutions Ltd which rose 79.75% to 2.8400, Coda Octopus Group Inc. which was up 64.44% to settle at 6.1500 and Genetic Technologies Ltd which gained 35.78% to close at 1.480. The worst performers were Innovate Biopharmaceuticals Inc. which was down 65.91% to 8.08 in late trade, Ability Inc. which lost 28.81% to settle at 5.05 and ShiftPixy Inc. which was down 27.92% to 3.33 at the close.

Oil

Oil prices extended early losses yesterday, dropping about $3 a barrel, after Treasury Secretary Steve Mnuchin said some crude importers may receive waivers to continue buying supplies from Iran, despite U.S. sanctions on the Middle Eastern country. Mnuchin told the reporters the Trump administration wants to avoid roiling global oil markets as it seeks to pressure Iran to make concessions on its nuclear program, ballistic missile tests and its role in regional conflicts. President Donald Trump withdrew the United States from the 2015 Iran nuclear deal and restored sanctions on Tehran in May. U.S. West Texas Intermediate crude oil prices ended Monday’s session down $2.95, or 4.2 percent, at $68.06. WTI has fallen for two weeks in a row, dropping from a 3½-year high above $75 a barrel. The Trump administration sent oil prices soaring three weeks ago after a senior State Department official told reporters the agency had been pushing Europeans to cut their oil purchases from Iran to zero by Nov. 4.

 
Precious and Base Metals

Gold steadied yesterday as weak physical demand in top-consuming regions and the expectation of higher U.S. interest rates weigh, despite the bullion-priced U.S dollar losing steam. Spot gold lost 0.2 percent at $1,239.11 per ounce. U.S gold futures for August delivery settled down $1.50, or 0.1 percent, at $1,239.70 per ounce. A lower U.S. currency makes dollar-denominated gold cheaper for holders of other currencies, which typically boosts bullion demand. However, low physical demand in top gold-consuming countries China and India and the continued expectation of the U.S. Federal Reserve to raise interest rates pressured bullion. It seems the second quarter Chinese figures are putting a damper on the metals. China’s economy expanded at a slower pace in the second quarter as Beijing’s efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low. India’s gold imports fell for a sixth month in June to 44 tonnes as a drop in the rupee lifted local prices to their highest in nearly 21 months, curtailing demand. Indian and China retail consumption has been hindered by depreciating local FX. Investors may favor gold again, especially if trade friction rises further and becomes a more sizeable threat to economic growth and to the decade-long equity market Bull Run. The U.S. dollar fell as investors pared back long bets on the greenback and rebalanced their positions ahead of Fed Chairman Jerome Powell’s first congressional testimony today. He is expected to reiterate the Fed’s gradual monetary policy tightening. Gold does not earn any interest or dividends and costs money to store and insure. Meanwhile, holdings for the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, have fallen more than 8 percent since late April to less than 26 million ounces, showing fading investor interest in bullion. Silver lost 0.1 percent at $15.77 per ounce. Platinum slipped 0.2 percent at $824.10 an ounce. Palladium declined 2.2 percent at $916.47 an ounce.

 

 

Traditional Agriculture

Soybean futures jumped yesterday after dropping to their lowest prices in a decade earlier in the session, as the U.S-China trade dispute looms over agricultural markets.

 

Futures Settlement Price Monday, July 16, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25017 25088 24960 25041 39
S & P 500 SPM18 2804.75 2808.75 2795 2796.75 -6.25
NASDAQ 100 NDM18 7398.5 7413 7321.25 7323.25 -68.75
Hang Seng HSH18 28613 28696 28296 28506 -48
Nikkei 225 NKH18 N/A N/A N/A N/A N/A
FTSE 100 FTH18 7591 7609 7500.5 7558 -49
Gold GCJ18 1243.1 1245.5 1238.1 1240.8 -0.2
Silver SIK18 1585 1589 1575 1579.5 -0.5
Copper HGK18 278.45 279.75 274.4 276.7 -0.85
Crude Oil CLK18 70.7 70.84 67.55 67.97 -3.03
Wheat WK18 495.5 498 486.5 488.25 -7.5
Soybeans SK18 819.5 837.5 810.25 828.5 10.5
Corn CK18 339.25 345.25 338.5 341.5 1

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24843 24902 24971 25030 25099 25158 25227
SPM18 2777.83 2786.42 2791.58 2800.17 2805.33 2813.92 2819.08
NDM18 7200.25 7260.75 7292.00 7352.50 7383.75 7444.25 7475.50
HSH18 27903 28099 28303 28499 28703 28899 29103
NKH18 N/A N/A N/A N/A N/A N/A N/A
FTH18 7394.17 7447.33 7502.67 7555.83 7611.17 7664.33 7719.67
GCJ18 1230.03 1234.07 1237.43 1241.47 1244.83 1248.87 1252.23
SIK18 1559.33 1567.17 1573.33 1581.17 1587.33 1595.17 1601.33
HGK18 268.80 271.60 274.15 276.95 279.50 282.30 284.85
CLK18 63.44 65.50 66.73 68.79 70.02 72.08 73.31
WK18 472.33 479.42 483.83 490.92 495.33 502.42 506.83
SK18 786.08 798.17 813.33 825.42 840.58 852.67 867.83
CK18 331.50 335.00 338.25 341.75 345.00 348.50 351.75

  Source: – News & Quotes (Courtesy:  Reuters)     

                                                               

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