Daily Market View
Friday, July 20, 2018
| U.S Stock Market
U.S stocks fell in midday trading yesterday, as major indexes consolidated their gains after a five-day rally that was driven largely by optimism over the strength of corporate earnings. The Dow Jones Industrial Average was down 120 points, or 0.4%. The blue-chip average is coming off its longest winning streak in two months. The S&P 500 slipped 9 points a 0.3% decline. The NASDAQ fell 22 points, or 0.3%. At current levels, the S&P is about 2.4% below its own record, while the Dow is 5.8% under its own. The muted action yesterday came as traders absorbed recent market-moving events, including Federal Reserve Chairman Jerome Powell’s two-day congressional testimony, upbeat economic data and a raft of largely positive earnings. Initial jobless claims fell by 8,000 last week, dropping to their lowest level since late 1969. Separately, the Philly Fed manufacturing index rose 6 points to a reading of 25.7 in July, above expectations. Oil prices rebounded sharply after Saudi Arabia said it expects to see a drop in August exports, while gold prices slumped.
|Major Economic Releases for Today|
|New Zealand Credit Card Spending (YoY)||03:00||3.7%|
|Japan All Industry Activity Index (MoM)||04:30||0.0%||1.0%|
|German Producer Price Index (YoY)||06:00||3.0%||2.7%|
|U.K Public Finances (PSNCR) (Pounds)||08:30||4.5b|
|U.K Public Sector Net Borrowing||08:30||3.6b||3.4b|
|U.K PSNB ex Banking Groups||08:30||5.0b||5.0b|
|Canada Retail Sales (MoM)||12:30||1.0%||-1.2%|
|Canada Consumer Price Index (YoY)||12:30||2.3%||2.2%|
|Baker Hughes U.S. Rig Count||17:00||1054|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.53% yesterday. The best performers of the session on the Dow Jones Industrial Average were International Business Machines, which rose 3.27% or 4.72 points to trade at 149.24 at the close. Meanwhile, Walt Disney Company added 1.30% or 1.44 points to end at 112.13 and Home Depot Inc. was up 0.83% or 1.66 points to 202.63 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 3.71% or 4.82 points to trade at 125.18 at the close. American Express Company declined 2.73% or 2.81 points to end at 100.17 and Walgreens Boots Alliance Inc. was down 1.86% or 1.23 points to 64.93.
The tech heavy NASDAQ index fell 0.37% yesterday. The top performers on the NASDAQ were Schmitt Industries Inc. which rose 29.58% to 3.110, AC Immune Ltd which was up 21.48% to settle at 14.31 and Adomani Inc. which gained 20.62% to close at 0.78. The worst performers were Mersana Therapeutics Inc. which was down 31.59% to 11.26 in late trade, AGM Group Holdings Inc Class A which lost 19.30% to settle at 13.84 and Resources Connection Inc. which was down 17.20% to 14.20 at the close.
Crude dipped yesterday as concerns about mounting supply returned after a brief rally earlier in the session on comments that Saudi Arabia’s exports would fall in August. Crude prices fell from session highs reached after Saudi Arabia’s OPEC Governor Adeeb Al-Aama statement that the kingdom expects crude exports to drop by roughly 100,000 bpd in August as it limits excess production. U.S. West Texas Intermediate (WTI) was 70 cents higher, or 1 percent, settling at $69.46. U.S crude prices had reached a session high of $70.17 earlier in the session before paring gains. Crude prices pulled back from highs earlier in the session as traders cashed in on profits, said John Kilduff, a partner at Again Capital Management in New York. Prices, which had strengthened on news of Saudi Arabia’s planned export cuts, fell as the market’s focus returned to potential oversupply as Saudi Arabia, Russia and other major producers continue to lift output.
|Precious and Base Metals
Gold sank to a one-year low yesterday as the dollar powered higher after comments from U.S. Federal Reserve chairman Jerome Powell which reaffirmed expectations for more interest rate rises in the world’s largest economy. Powell, in a closely watched two-day congressional testimony, said he believed the United States was on course for years more of steady growth, and carefully played down the risks to the U.S. economy of an escalating trade conflict. The Fed raised rates in June and policymakers indicated they expect two more rate increases this year. Powell said nothing in his testimony this week to undermine that, and said the economy was poised for several more years of growth. Gold is highly exposed to interest rates, particularly in the United States, as higher rates lift the opportunity cost of holding non-yielding assets and boost the dollar, in which gold is priced. Spot gold fell 0.7 percent to $1,217.95 per ounce, having earlier touched its lowest since July 2017 at $1,211.08. U.S. gold futures for August delivery were 0.9 percent lower at $1,216.56 an ounce. Gold is not being used as a safe haven right now despite the ongoing trade war, and the stronger dollar is dominating the story amidst the rate-rising environment. Gold is generally regarded as a safe and stable store of value during times of global uncertainty. The dollar rose to a one-year high against a basket of six major currencies, supported by bullish comments from Powell, which affirmed expectations for more interest rate increases this year. U.S. President Donald Trump said on Wednesday the United States may hammer out a trade deal with Mexico, and then do a separate one with Canada later, sowing fresh doubts about the future of the North American Free Trade Agreement (NAFTA). Among other precious metals, silver was down 1.6 percent at $15.27 an ounce, its lowest since last July. Platinum was 2.2 percent lower at $795 an ounce, its lowest since 2008.
Soybean futures eased slightly in yesterday’s session amid a strengthening dollar as the market stepped back from the previous sessions near one-week top, though demand for U.S beans kept a floor under the market.
|Futures Settlement Price Thursday, July 19, 2018|
|S & P 500||SPM18||2814.5||2817.75||2800.25||2805.75||-10|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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