20 Nov 2018

Daily Market View

Tuesday, November 20, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25028 2696.25 6671.75
-1.56% -1.66% -3.03%

Stocks retreated sharply lower yesterday, with shares of technology and internet-related companies dragging the market lower. The main equity benchmarks saw losses accelerate in morning trade after a report showed home-builders’ confidence plummeted in November. U.S financial markets will be closed Thursday for the Thanksgiving Day holiday. The NASDAQ led the markets lower, closing down 219.4 points, or 3%. The Dow Jones Industrial Average tumbled 395.8 points, or 1.6%, and the S&P 500 index retreated 45.5 points, or 1.7%. Last week, the Dow posted a weekly decline of 2.2%, the S&P 500 index declined by 1.6% while the NASDAQ shed 2.2%. Investor anxiety, evidenced by last week’s declines, continued Monday, following a report on home-builder confidence that showed sector executives less upbeat than at any point in more than two years. Trade issues have been a key driver of volatility, as investors consider the possibility that U.S. tariff rates on a swath of Chinese goods could rise from 10% to 25% in January, as they will under current policy, absent a resolution.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

Australia RBA Meeting Minutes 00:30    

oct

Japan Convenience Store Sales (YoY) 07:00   3.5%

oct

Switzerland Swiss Watch Exports (YoY) 07:00   -6.8%

oct

German Producer Price Index (YoY) 07:00 3.3% 3.2%

 

Australia RBA’s Lowe gives speech in Melbourne 08:20    

 

BOE’s Carney, Haldane, Cunliffe and Saunders Testify in London 10:00    

oct

U.S Housing Starts (MoM) 13:30 2.4% -5.3%

oct

U.S Building Permits (MoM) 13:30 -0.8% -0.6%

oct

Australia Westpac Leading Index (MoM) 23:30   -0.1%
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 1.56% yesterday. The best performers of the session on the Dow Jones Industrial Average were Pfizer Inc., which rose 1.54% or 0.67 points to trade at 44.18 at the close. Meanwhile, The Travelers Companies Inc. added 1.36% or 1.75 points to end at 130.52 and Johnson & Johnson was up 1.19% or 1.74 points to 147.73 in late trade. The worst performers of the session were Boeing Co, which fell 4.47% or 15.01 points to trade at 320.94 at the close. Apple Inc. declined 3.96% or 7.67 points to end at 185.86 and Visa Inc. was down 3.87% or 5.42 points to 134.76.

 

 

 

NASDAQ 100

The tech heavy NASDAQ index fell 3.03%. The top performers on the NASDAQ Composite were Cesca Therapeutics Inc. which rose 51.32% to 0.4600, Akers Biosciences Inc. which was up 42.28% to settle at 1.750 and Yulong Eco-Materials Ltd which gained 25.69% to close at 6.410. The worst performers were Arcimoto Inc. which was down 21.77% to 2.30 in late trade, Sonoma Pharmaceuticals Inc. which lost 18.47% to settle at 0.901 and Champions Oncology Inc. which was down 17.89% to 10.1900 at the close.

 

 

Oil

Oil prices rose in choppy trade yesterday, under pressure from growing supply but supported by a reported drawdown of U.S oil inventories, potential EU sanctions on Iran and possible OPEC production cuts. U.S futures ended yesterday’s session 68 cents higher at $56.76, after dropping as far as $55.08, near last week’s one-year low. Traders said futures pared losses when energy information provider Genscape reported that crude inventories fell in the latest week. EU foreign ministers endorsed a French government decision to sanction Iranian nationals accused of a bomb plot in France, three diplomats said. The United States has granted waivers to some of Iran’s oil customers. OPEC, led by Saudi Arabia, is pushing for the group and its partners to reduce output by 1 million to 1.4 million barrels per day to prevent a build-up of unused fuel. U.S. crude stockpiles have grown for eight straight weeks, and data last week showed inventories swelled by the most in more than a year.

 

 

Precious and Base Metals

Gold inched up yesterday as the dollar fell, but the metal stayed in a tight range as investors held off on big moves ahead of the U.S Thanksgiving holiday on Thursday. Spot gold was 0.2 percent higher at $1,224.13 per ounce after hitting a one-week high of $1,225.29 in the previous session. U.S gold futures settled up $2.30, or 0.2 percent, at $1,225.30. The dollar fell to two-week lows after Federal Reserve officials’ comments about the U.S. economy suggested the central bank may be nearing the end of its tightening cycle. A softer dollar makes gold cheaper for holders of other currencies. There has been a lot of back and forth language (on) whether or not the Federal Reserve will implement a neutral interest rate or will they take it above neutral, temporarily. Markets are waiting for a little more clarity on (a possible) December rate hike as well as the outlook for 2019. Gold is taking a sideways approach in this environment. Trading volumes are expected to remain subdued before Thanksgiving. I expect prices to consolidate around the $1,220 level throughout the remainder of the week. There is not a lot of news action in the market. We are expecting the Fed to raise interest rates at the next meeting in December. Most likely that will keep gold from getting above the recent highs. Higher rates dampen the appeal of gold, which pays no interest and incurs costs to store and insure. Indicative of investor sentiment towards bullion, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2 percent to their lowest in a week on Friday. Hedge funds and money managers boosted their net short position in gold to the highest in five weeks. Palladium fell 1.4 percent to $1,160.70 per ounce, after hitting a record high of $1,185.40 in the previous session. Silver rose 0.2 percent to $14.43 an ounce.

 

 

 

 

Traditional Agricultures

Soybean futures fell 2.1 percent yesterday, hitting their lowest since Nov. 8, as a lack of consensus at a meeting of Asia-Pacific leaders cooled hopes of Washington and Beijing resolving a trade dispute that has disrupted U.S soybean exports to China. Wheat prices also fell sharply, shedding 1.7 percent as investors continued to wait for an upturn in U.S exports.

 

 

 

Futures Settlement Price Monday, November 19, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25384 25490 24888 25028 -416
S & P 500 SPM18 2732.75 2748 2681.5 2696.25 -45.75
NASDAQ 100 NDM18 6874.75 6933.75 6632 6671.75 -222
Hang Seng HSH18 26080 26373 26063 26284 173
Nikkei 225 NKH18 21685 21850 21620 21840 205
FTSE 100 FTH18 7017 7064.5 6963.5 6989 -34
Gold GCJ18 1223.7 1226 1218.3 1224.5 1.6
Silver SIK18 1438 1438 1436 1436.5 0
Copper HGK18 277.65 280.9 276 279.9 -0.3
Crude Oil CLK18 57.26 57.54 55.24 57.35 0.69
Wheat WK18 506.25 507 495.75 498.5 -8
Soybeans SK18 890.25 891.25 871 874 -17.5
Corn CK18 364.5 366 361 362 -2.5

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2
DJM18 24179 24533 24781 25135 25383 25737 25985
SPM18 2602.67 2642.08 2669.17 2708.58 2735.67 2775.08 2802.17
NDM18 6256.17 6444.08 6557.92 6745.83 6859.67 7047.58 7161.42
HSH18 25797 25930 26107 26240 26417 26550 26727
NKH18 21460 21540 21690 21770 21920 22000 22150
FTH18 6845.83 6904.67 6946.83 7005.67 7047.83 7106.67 7148.83
GCJ18 1212.17 1215.23 1219.87 1222.93 1227.57 1230.63 1235.27
SIK18 1433.67 1434.83 1435.67 1436.83 1437.67 1438.83 1439.67
HGK18 272.07 274.03 276.97 278.93 281.87 283.83 286.77
CLK18 53.58 54.41 55.88 56.71 58.18 59.01 60.48
WK18 482.58 489.17 493.83 500.42 505.08 511.67 516.33
SK18 846.00 858.50 866.25 878.75 886.50 899.00 906.75
CK18 355.00 358.00 360.00 363.00 365.00 368.00 370.00

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

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This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

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