Daily Market View
Tuesday, July 17, 2018
| U.S Stock Market
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|
|RBA July Meeting Minutes||01:30|
|China New Home Prices (MoM)||01:30||0.8%|
||BOE’s Carney, Cunliffe, Stheeman Speak on Financial Stability||08:00|
|U.K Claimant Count Rate||08:30||2.5%|
|U.K Jobless Claims Change||08:30||-7.7k|
|U.K Average Weekly Earnings (3M/YoY)||08:30||2.5%||2.5%|
|U.S Industrial Production (MoM)||13:15||0.5%||-0.1%|
|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.
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 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.
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|
|S & P 500||SPM18||2804.75||2808.75||2795||2796.75||-6.25|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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