06 Dec 2018

Daily Market View

Daily Market View

Thursday, December 06, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25156 2717.75 6848.25
+0.10% +0.24% +0.40%

U.S stock futures closed higher yesterday, pointing to a slight rebound from the steep losses seen in regular trading. Dow Jones Industrial Average futures climbed 110 points, indicating a gain of 113.93 points. S&P 500 and NASDAQ 100 futures also pointed to slight gains. U.S stock futures closed earlier on Tuesday out of respect for former President George H.W. Bush’s funeral. The U.S stock market was also closed yesterday. The Dow Jones Industrial Average plunged 799.36 points on Tuesday, while the S&P 500 dropped more than 3 percent. The NASDAQA, meanwhile, fell 3.8 percent to close in correction territory. The yield on the three-year Treasury note surpassed its five-year counterpart on Monday. When a so-called yield curve inversion happens — short-term yields trading above longer-term rates — a recession could follow, though it is often years away after the signal triggers. Stocks began falling to their lows of the day after Jeffrey Gundlach, CEO of Doubleline Capital, told Reuters this inversion signals that the economy “is poised to weaken.”

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

U.S Challenger Job Cuts (YoY) 12:30   153.6%

oct

U.S Trade Balance 13:30 -$55.0b -$54.0b

dec

U.S Initial Jobless Claims 13:30 225k 234k

nov

U.S Continuing Claims 13:30 1695k 1710k

nov

U.S ISM Non-Manufacturing/Services Composite 15:00 59 60.3

oct

U.S Factory Orders 15:00 -2.0% 0.7%

oct

U.S Durable Goods Orders 15:00 -2.4% -4.4%

nov

DOE U.S. Crude Oil Inventories 16:00   3577k

 

U.S Powell Gives Brief Welcome Remarks at Housing Conference 23:45    
Dow Jones Industrial Average

Dow Jones futures fell earlier in the session, after the arrest of the CFO of Chinese telecom gear giant Huawei. Canada’s arrest, at the behest of the U.S, enraged China. Investors can find parallels to the current choppy stock market rally from this past spring and summer. But there are key differences that aren’t encouraging. Long-term support lines are acting as resistance. Stock market rallies are short-lived, while the stock market struggles to make higher highs. Apple and FANG stocks Facebook, Amazon.com, Netflix and Google parent Alphabet are all in worse shape than earlier this year.

 

NASDAQ 100

The tech-heavy NASDAQ index fell nearly 4 percent on Tuesday, with tech stocks like Apple, Amazon, Alphabet and Facebook weighing most heavily. The losses extend pain periods for Apple, which has seen downturn in recent weeks, and Facebook, which is suffering a down year on the heels of several scandals.

Oil

Oil prices edged higher yesterday as global investors’ awaited clarity on a possible, but far-from-assured, output cut by major producers gathering in Vienna. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee, or JMMC, which includes the Organization of the Petroleum Exporting Countries member Saudi Arabia and nonmember Russia, met yesterday. It recommended a production cut from the September-October output levels, Oman’s oil minister told reporters, according to Dow Jones. The minister also said Russia agreed on the need for an output cut. OPEC will hold its official meeting today, with another key meeting between the group’s members and nonmember allies to be held Friday. Saudi Arabia’s oil minister had cast fresh doubt on whether that production-cut agreement would be reached by OPEC, plus Russia and other producers, in Vienna today, the Wall Street Journal reported, citing news reports from the region. West Texas Intermediate crude for January delivery tacked on 15 cents, or 0.3%, at $53.40 a barrel on the New York Mercantile Exchange. The contract tumbled 22% in November, the biggest monthly fall since October 2008.

 

 

Precious and Base Metals

Gold prices edged lower yesterday, a day after hitting their highest level in more than five weeks, as comments from a Federal Reserve official kept alive the prospect of gradually rising U.S interest rates. Meanwhile, palladium hit a new record high of $1,263.44 an ounce, widening its premium over gold to around $25, helped by a sustained supply deficit and increased speculative interest. It was 2.1 percent higher at $1,259.05 per ounce. Spot gold was down 0.1 percent at $1,237.31 per ounce, after hitting its highest since Oct. 26 at $1,241.86 on Tuesday. U.S gold futures were down 0.3 percent at $1,243.20 per ounce. The U.S Federal Reserve talking about the gradual increase in rates is going against some of the expectations that have been building up recently. The U.S central bank has increased interest rates three times this year but concerns about weaker growth have stoked bets that the Fed will end its tightening campaign sooner than previously thought. However, New York Fed President John Williams on Tuesday said the Federal Reserve should expect to continue raising interest rates “over the next year or so” even while it pays close attention to possible risks highlighted by financial markets. The central bank is widely expected to raise rates at its policy meeting on Dec. 18-19 and investors are keeping a close eye on signals for the future path of interest rates next year. Higher interest rates increase the opportunity cost of holding non-yielding bullion. World stocks tumbled to one-week lows yesterday, as declines by long-dated U.S. bond yields and a renewal of trade concerns stoked fears of a downturn in the United States, the world’s biggest economy, and pressured the dollar. Gold prices have recovered about 7 percent from 19-month lows hit in mid-August. The momentum certainly appears to be with the bulls at the moment, especially if the dollar remains under pressure in the aftermath of the trade war truce. Spot silver was steady at$14.52 per ounce.

 

 

Traditional Agricultures

Soybeans inched lower, consolidating after multi-month highs this week as investors sought clues as to whether a truce between Washington and Beijing in their trade dispute would revive U.S soybean sales to China.

 

 

 

Futures Settlement Price Wednesday, December 05, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25023 25188 25003 25156 110
S & P 500 SPM18 2699.5 2720.5 2698 2717.75 16
NASDAQ 100 NDM18 6795.5 6861.25 6791.75 6848.25 45.75
Hang Seng HSH18 26784 26942 26720 26759 -507
Nikkei 225 NKH18 21645 21975 21630 21880 -155
FTSE 100 FTH18 6965.5 6978 6908.5 6915 -25
Gold GCJ18 1243.8 1244.6 1238.75 1242.4 -1.2
Silver SIK18 1459.5 1461 1448 1456 -3
Copper HGK18 275.85 277.7 274.5 277.2 1.35
Crude Oil CLK18 52.56 54.4 52.12 52.89 0.33
Wheat WK18 521.25 521.75 513.25 517.5 -4.5
Soybeans SK18 909.75 916.25 908 913.25 2
Corn CK18 383 386.25 382.25 384 -0.25

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24858 24931 25043 25116 25228 25301 25413
SPM18 2681.17 2689.58 2703.67 2712.08 2726.17 2734.58 2748.67
NDM18 6736.75 6764.25 6806.25 6833.75 6875.75 6903.25 6945.25
HSH18 26450 26585 26672 26807 26894 27029 27116
NKH18 21337 21483 21682 21828 22027 22173 22372
FTH18 6820.17 6864.33 6889.67 6933.83 6959.17 7003.33 7028.67
GCJ18 1233.38 1236.07 1239.23 1241.92 1245.08 1247.77 1250.93
SIK18 1436.00 1442.00 1449.00 1455.00 1462.00 1468.00 1475.00
HGK18 272.03 273.27 275.23 276.47 278.43 279.67 281.63
CLK18 49.59 50.86 51.87 53.14 54.15 55.42 56.43
WK18 504.75 509.00 513.25 517.50 521.75 526.00 530.25
SK18 900.50 904.25 908.75 912.50 917.00 920.75 925.25
CK18 378.08 380.17 382.08 384.17 386.08 388.17 390.08

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

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