17 Oct 2018

Daily Market View

 

Daily Market View

 Wednesday, October 17, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25777 2818.50 7356.25
+1.78% +1.82% +2.45%

Wall Street stocks jumped yesterday following a batch of mostly good earnings that helped investors look past recent stock market weakness. About 20 minutes into trading, the Dow Jones Industrial Average was up 0.7 percent. The broad-based S&P also gained 0.7 percent, while the tech-rich NASDAQ jumped 1.0 percent. Shares of leading companies rose following earnings reports and positive commentary about economic conditions. United Health rose 3.1 percent, Morgan Stanley 2.8 percent, Johnson & Johnson 2.5 percent and Goldman Sachs 0.9 percent. The gains helped the market shift focus after worries about high interest rates and trade war fallout prompted a bruising two-day rout last week that hung over stocks on Monday, when equities again fell. Lingering concerns “aren’t going to vanish overnight, yet encouraging earnings guidance can go a long way toward dulling the stock market’s bearish senses for the time being and instilling some upside momentum again in growth stocks.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

sep

U.K Consumer Price Index (YoY) 08:30 2.6% 2.7%

sep

U.K Core Consumer Price Index (YoY) 08:30 2.0% 2.1%

aug

U.K House Price Index (YoY) 08:30 2.8% 3.1%

oct

 BOE’s FPC Minutes 08:30

sep

Euro-Zone Consumer Price Index (YoY) 09:00 2.1% 2.0%

sep

U.S Housing Starts (MoM) 12:30 -5.6% 9.2%

sep

U.S Building Permits (MoM) 12:30 2.1% -5.7%

oct

DOE U.S. Crude Oil Inventories 14:30 5987k

sep

U.S FOMC Meeting Minutes 18:00
Dow Jones Industrial Average

The Dow Jones Industrial Average gained 2.17%. The biggest gainers of the session on the Dow Jones were UnitedHealth Group Incorporated, which rose 4.73% or 12.32 points to trade at 272.57 at the close. Nike Inc. added 3.32% or 2.49 points to end at 77.48 and Visa Inc. was up 3.29% or 4.51 points to 141.74 in late trade. Biggest losers included Verizon Communications Inc., which added 0.19% or 0.10 points to trade at 53.70 in late trade. McDonald’s Corporation added 0.24% or 0.40 points to end at 164.07 and Exxon Mobil Corp gained 0.47% or 0.38 points to 81.20.

 

 

NASDAQ 100

The NASDAQ index added 2.89%. The top performers on the NASDAQ Composite were Blink Charging Co which rose 62.56% to 3.5600, Sears Holdings Corporation which was up 29.03% to settle at 0.40 and Trevena Inc. which gained 26.18% to close at 1.07. The worst performers were Hudson Technologies Inc. which was down 31.55% to 0.842 in late trade, Flex Pharma Inc. which lost 27.37% to settle at 0.69 and Liquid Media Group Ltd which was down 24.47% to 3.210 at the close.

 

 

Oil

Oil prices were higher yesterday as concerns about tightening global supplies ahead of U.S. sanctions on Iran faced higher U.S shale production and inventories. The disappearance of a Saudi Arabian journalist Jamal Khashoggi in Turkey has also strained U.S.-Saudi ties and provoked international outcry and fears that supplies from the world’s top crude exporter may be affected. The focus within the oil trade during the next couple of weeks is likely to be on Iran and Saudi Arabia. In the absence of upward pull from the products or the Brent market, WTI will have difficulty advancing and additional weakening in the WTI curve would appear likely given recent stock builds at Cushing. Reports that Iranian exports of crude oil may be falling faster than expected ahead of new U.S. sanctions on Tehran from Nov. 4 lent support. The U.S. Department of Energy will release official data later in today’s session. OPEC Secretary-General Mohammad Barkindo said oil markets were currently adequately supplied and balanced.

 

 

Precious and Base Metals

Gold rose yesterday as investors unwound some bearish positions after prices jumped to a 2-1/2-month high in the previous session, driven by a global equities sell-off. Spot gold was up 0.4 percent at $1,231.20 per ounce, having peaked on Monday at $1,233.26, its highest since July 26. U.S. gold futures were up 0.4 percent at $1,234.60. Gold is still holding the gains, very close to the 100-day moving average. A close above that level could be a positive sign and provoke more short-covering and push prices higher. Speculators who trade on technical signals regard a break above the 100-day moving average as a bullish sign. Prices were trading above the 100-day moving average of $1,227. Data last week showed that speculators had increased their short positions and traders said the recent rally forced many to abandon those bets on lower prices. Tensions between Saudi Arabia and Western nations, plus potential divisions in Europe over Italy’s budget, were also helping gold. Global equities edged higher after sharp declines over the past couple of days, but gains were capped as markets remained nervous because of factors including the U.S.-China trade tussle, tensions between Saudi Arabia and western powers, stalled Brexit negotiations and concerns over China’s economy. Gold, usually viewed as a safe store of value during political and economic uncertainty, has fallen nearly 10 percent from its April peak as investors largely turned to the dollar as the U.S.-China trade war unfolded against a background of higher U.S interest rates. The recent volatility in world stock markets and some heightened geopolitical tensions are continuing to provide some demand for safe-haven gold. Holdings of SPDR Gold Trust, the largest gold-backed exchange traded fund, rose for a second straight session on Monday, rising 4.1 tonnes. Holdings have gained about 2.5 percent in the past seven days. In other metals, Silver rose 0.8 percent to $14.77 an ounce, earlier in the session it touched its highest since Oct. 2 at 14.84.

 

 

 

 

Traditional Agricultures

Soybean prices slid yesterday, taking a breather after three sessions of gains to an eight-week high as rains in parts of the U.S Midwest slowed the pace of harvest and raised concerns over crop quality.

 

 

 

Futures Settlement Price Tuesday, October 16, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25173 25802 25164 25777 581
S & P 500 SPM18 2747.5 2818.75 2745.5 2818.5 69.75
NASDAQ 100 NDM18 7070.5 7356.75 7063.25 7356.25 280.5
Hang Seng HSH18 25480 25675 25203 25382 42
Nikkei 225 NKH18 22250 22535 22225 22405 195
FTSE 100 FTH18 7002.5 7057 6969 7051.5 59
Gold GCJ18 1230.5 1235.6 1226.2 1227.9 -2.3
Silver SIK18 1472 1486.5 1463 1467 -3.5
Copper HGK18 277.85 279.3 275.85 278.35 0.35
Crude Oil CLK18 71.67 72.25 70.99 72.14 0.45
Wheat WK18 524.75 526.5 520.75 523.5 -1.5
Soybeans SK18 890.5 890.75 878.75 884.5 -6.75
Corn CK18 376.5 377 373.25 374.75 -3

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2
DJM18 24722 24943 25360 25581 25998 26219 26636
SPM18 2696.50 2721.00 2769.75 2794.25 2843.00 2867.50 2916.25
NDM18 6867.25 6965.25 7160.75 7258.75 7454.25 7552.25 7747.75
HSH18 24693 24948 25165 25420 25637 25892 26109
NKH18 21932 22078 22242 22388 22552 22698 22862
FTH18 6906.67 6937.83 6994.67 7025.83 7082.67 7113.83 7170.67
GCJ18 1214.80 1220.50 1224.20 1229.90 1233.60 1239.30 1243.00
SIK18 1434.33 1448.67 1457.83 1472.17 1481.33 1495.67 1504.83
HGK18 272.92 274.38 276.37 277.83 279.82 281.28 283.27
CLK18 70.08 70.53 71.34 71.79 72.60 73.05 73.86
WK18 514.92 517.83 520.67 523.58 526.42 529.33 532.17
SK18 866.58 872.67 878.58 884.67 890.58 896.67 902.58
CK18 369.25 371.25 373.00 375.00 376.75 378.75 380.50

 

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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