Daily Market View
Tuesday, July 03, 2018
| U.S Stock Market
U.S stocks pared losses yesterday after a weak morning as gains in technology stocks bolstered the NASDAQ. On the first trading day of the third quarter, the S&P 500 flipped in and out of negative territory while the blue-chip Dow almost erased most of its 100-point deficit. Worries over trade tensions between the U.S. and its major trading partners lingered, weighing on investors’ sentiment. The Dow Jones Industrial Average fell 51 points, or 0.2%. The S&P 500 shed less than a point and the NASDAQ reversed an earlier drop to rise 32 points, or 0.4%. Recent trading has been driven by uncertainty over trade policy, with investors seeking clarity about potential protectionist changes to U.S. policies and how they could be met by retaliatory measures. A trade war is seen as providing a significant headwind to global growth. On Sunday, President Trump said he sees his threat to impose global auto tariffs as his biggest weapon to extract concessions from trading partners.
|Major Economic Releases for Today|
|Australia Building Approvals (YoY)||01:30||9.9%||1.9%|
|RBA Cash Rate Target||04:30||1.50%||1.50%|
|Markit/CIPS UK Construction PMI||08:30||52.5||52.5|
|Euro-Zone Producer Price Index (YoY)||09:00||2.7%||2.0%|
|Euro-Zone Retail Sales (YoY)||09:00||1.6%||1.7%|
|RBC Canadian Manufacturing PMI||13:30||56.2|
|U.S Durable Goods Orders||14:00||-0.5%||-0.6%|
|Australia AiG Performance of Service Index||22:30||59|
|U.K BRC Shop Price Index (YoY)||23:01||-1.1%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.15% yesterday. The best performers of the session on the Dow Jones were Microsoft Corporation, which rose 1.42% or 1.40 points to trade at 100.01 at the close. Meanwhile, Goldman Sachs Group Inc. added 1.22% or 2.69 points to end at 223.26 and Apple Inc. was up 1.12% or 2.07 points to 187.18 in late trade. The worst performers of the session were Walmart Inc., which fell 1.93% or 1.65 points to trade at 84.00 at the close. General Electric Company declined 1.76% or 0.24 points to end at 13.37 and Chevron Corp was down 1.72% or 2.18 points to 124.25.
The tech heavy NASDAQ index climbed 0.76% yesterday. The top performers on the NASDAQ Composite were RadiSys Corporation which rose 120.28% to 1.540, Adamis Pharma which was up 50.00% to settle at 4.80 and SAExploration Holdings Inc. which gained 42.86% to close at 2.300. The worst performers were MiMedx Group Inc. which was down 38.50% to 3.93 in late trade, MabVax Therapeutics Holdings Inc. which lost 36.49% to settle at 0.540 and Helios and Matheson Analytics Inc. which was down 29.03% to 0.220 at the close.
Oil prices fell yesterday, reversing course from last week as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid an escalating trade dispute with the United States. U.S. light crude dropped 28 cents to $73.87 a barrel. The move came after information provider Genscape said U.S. crude inventories at Cushing, Oklahoma had fallen in the week, traders said. Genscape said stockpiles at the Cushing delivery hub were down 3.2 million barrels in the week June 22, but rose slightly in the four following days to June 26. Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46. But a flurry of announcements over the weekend unsettled oil markets. U.S. President Donald Trump tweeted on Saturday that Saudi Arabia’s King Salman bin Abdulaziz Al Saud had agreed to pump more oil, “maybe up to 2,000,000 barrels”. The White House later walked back the comments.
|Precious and Base Metals
Gold slipped more than 1 percent to its lowest in 6-1/2 months yesterday ahead of a U.S holiday, and platinum headed to its lowest in nearly 10 years as the greenback strengthened and an ongoing U.S.-European Union trade spat pressured precious metals. Fears of a trade war between the United States and China have helped weaken China’s renminbi, the Indian rupee and Japan’s yen against the dollar. A strong dollar makes greenback-priced gold more expensive for holders of other currencies. The dollar received another boost from better-than-expected U.S. manufacturing data. Its strength has helped to pressure spot gold by more than 8 percent from its April high of $1,365.23. Meanwhile, a deepening auto tariff spat between the United States and the European Union has caused more sales of autocatalyst metals platinum and palladium. Spot gold was down 0.8 percent at $1,242.01 per ounce. U.S. gold futures for August delivery settled down $12.80, or 1 percent, at $1,241.70 per ounce. Platinum was down 4 percent at $814 an ounce after touching its weakest since December 2008 at $804. The European Union has warned the United States that imposing import tariffs on cars and car parts would harm the U.S. automotive industry and likely lead to counter-measures on $294 billion of U.S exports. On Wednesday, July 4, the trade will halt early for the U.S. Independence Day holiday and there will be no settlement price. Investors awaited minutes of a June Federal Reserve meeting on Thursday and U.S. employment data on Friday. An aggressive tone by the Fed or strong jobs numbers could bolster the case for higher U.S. interest rates. Higher rates tend to strengthen the dollar and boost bond yields, reducing the appeal of non-yielding bullion. In other precious metals, silver was down 1.4 percent at $15.85 an ounce after hitting $15.73, the lowest in 6-1/2 months.
Wheat, Corn, and Soybeans
Corn and soybean futures fell to within a few cents of contract lows yesterday on strong U.S crop prospects and on concerns that trade fights with key export partners would curb export demand. Wheat also fell as rising supplies from the U.S winter crop harvest overshadowed worries about weather-reduced crops.
|Futures Settlement Price Monday, July 02, 2018|
|S & P 500||SPM18||2720.75||2728.25||2698.5||2727.75||5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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