31 Jul 2018

Daily Market View

         

Daily Market View

Tuesday, July 31, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25289 2803.50 7200.75
-0.57% -0.58% -1.39%

U.S stocks dropped yesterday as marquee technology companies continued to slide on growth concerns, with losses being curbed by a rise in energy firms on higher oil prices and in financials ahead of the Federal Reserve meeting. The technology index has been under pressure after underwhelming forecasts from Facebook, Intel and Twitter threw up questions about the growth prospects of a sector whose surge has propelled the stock market to record highs. Apple, which was trading higher premarket, fell 0.5 percent and is due to report earnings yesterday after the bell, the only one of the so-called FAANG group that is yet to report. Other FAANG members also declined: Facebook fell 3.2 percent, Amazon declined 0.8 percent, and Alphabet dropped 1.8 percent, while Netflix slid 4.3 percent. The Dow Jones Industrial Average was down 15.51 points, or 0.06 percent, the S&P 500 was down 7.90 points, or 0.28 percent and the NASDAQ was down 67.60 points, or 0.87 percent. The Federal Reserve meets on Tuesday and Wednesday and is expected to keep rates unchanged.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jul

BOJ Rate Decision   -0.10% -0.10%

jul

China Manufacturing PMI 01:00 51.3 51.5

jul

German Unemployment Claims Rate s.a. 07:55 5.2% 5.2%

jul

Euro-Zone Consumer Price Index Core (YoY) 09:00 1.0% 0.9%

2Q

Euro-Zone Gross Domestic Product s.a. (YoY) 09:00 2.2% 2.5%

may

Canada Gross Domestic Product (YoY) 12:30 2.3% 2.5%

jun

U.S PCE Core (YoY) 12:30 2.0% 2.0%

jul

U.S Chicago Purchasing Manager 13:45 61.8 64.1

jul

U.S Consumer Confidence Index 14:00 126.5 126.4
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 0.57% yesterday. The best performers of the session on the Dow Jones Industrial Average were Merck & Company Inc., which rose 2.08% or 1.32 points to trade at 64.81 at the close. Meanwhile, Chevron Corp added 1.48% or 1.86 points to end at 127.83 and Verizon Communications Inc. was up 0.92% or 0.48 points to 52.49 in late trade. The worst performers of the session were Visa Inc., which fell 3.01% or 4.23 points to trade at 136.48 at the close. American Express Company declined 2.89% or 3.00 points to end at 100.85 and Boeing Co was down 2.66% or 9.59 points to 351.06.

 

 

 

 

 

 

 

 

 

 

 

NASDAQ 100

The tech heavy NASDAQ index lost 1.39% yesterday. The top performers on the NASDAQ Composite were SSLJ.com Ltd Class A which rose 61.48% to 2.1800, ARCA Biopharma Inc. which was up 40.86% to settle at 0.817 and MYnd Analytics Inc. which gained 33.81% to close at 1.86. The worst performers were Helios and Matheson Analytics Inc. which was down 60.00% to 0.800 in late trade, iFresh Inc. which lost 34.18% to settle at 2.60 and Wilhelmina which was down 23.97% to 6.25 at the close.

Oil

Oil prices rose yesterday, with U.S crude futures jumping more than 2 percent, as traders continued to focus on supply disruptions and a possible hit to crude output from U.S sanctions on Iran. U.S. West Texas Intermediate crude futures (WTI) rose $1.44, or 2.1 percent, to settle at $70.13 a barrel. WTI rose on expectations that U.S. inventories fell last week and worries that an outage at a Syncrude facility in Canada will not be solved as soon as expected. Crude inventories at the Oklahoma, delivery point for WTI has been dwindling, in part due to the situation at the Syncrude facility that has reduced the flow of oil into the hub. Stocks at the Cushing dropped to 23.7 million barrels, the lowest since November 2014 in the week to July 20. Oil prices have rebounded from recent lows over the last two weeks, as looming sanctions on Iran have already started to curtail exports from that country. U.S. President Donald Trump said on Monday he would meet with Iran’s President, Hassan Rouhani.

Precious and Base Metals

Gold steadied yesterday ahead of a meeting of the U.S Federal Reserve this week that could yield clues to the future direction of U.S interest rates and the dollar, key factors for precious metals prices. Spot gold was steady at $1,223.14 per ounce, compared with a one-year low of $1,211.08 hit earlier this month. U.S. gold futures for August delivery settled down $1.70, or 0.1 percent, at $1,221.30 per ounce. A higher U.S. currency makes dollar-denominated gold more expensive for holders of other currencies, which could subdue demand. Dollar gains since the middle of April have led to losses of about 10 percent for spot gold prices. Gold is still a dollar story, and I see no sign of the correlation breaking down. A significant driver for dollar gains has been safe haven flows due to trade tensions. Lack of investor interest is leading gold to behave like a currency; there are no safe haven flows to gold. The United States signaled last week it is set to push ahead with talks with Canada and Mexico after agreeing to suspend hostilities over tariffs with Europe in a deal that may clear the way for renewed pressure on China. There’s a flurry of Fed announcements coming out this week, and I think we are in a holding pattern until we hear from one of these central bank opinions. The Bank of Japan ends a two-day monetary policy meeting today, while the Bank of England is expected to raise interest rates on Thursday. The U.S central bank’s two-day meeting, which starts today, is expected to keep benchmark interest rates steady after hiking in June. Investors will be looking for clues to the timing of the next rise. Expectations are for two more rate rises this year and three next year. Higher U.S. interest rates create an opportunity cost for investors. Hedge funds and money managers increased their net short position in COMEX gold contracts to their highest since 2006, in the week to July 24, recent U.S. Commodity Futures Trading Commission data showed.

 

 

 

 

Traditional Agriculture

Wheat futures rallied almost 3 percent yesterday on concerns that deteriorating crops in several key producing countries will tighten global stocks of the grain. Corn scaled to a 1-1/2-month high on spillover support from wheat and as dry conditions in parts of the U.S corn belt trimmed harvest prospects.

 

 

Futures Settlement Price Monday, July 30, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25419 25472 25262 25289 -119
S & P 500 SPM18 2815.75 2821.5 2798.5 2803.5 -13.75
NASDAQ 100 NDM18 7292.75 7309 7166.5 7200.75 -99.5
Hang Seng HSH18 28570 28816 28512 28682 -31
Nikkei 225 NKH18 22590 22610 22490 22535 -140
FTSE 100 FTH18 7596 7657 7591 7628 12.5
Gold GCJ18 1222.4 1223.7 1217.8 1220.5 -2.4
Silver SIK18 1549.5 1555.5 1540.5 1552 4
Copper HGK18 280.15 280.9 275.85 279.95 -0.25
Crude Oil CLK18 68.92 70.4 68.76 70.15 1.52
Wheat WK18 538.25 551.5 532.5 546.75 16.5
Soybeans SK18 883.75 884.75 875.75 882 0
Corn CK18 365 368.75 363.25 367.75 6

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 25000 25131 25210 25341 25420 25551 25630
SPM18 2771.17 2784.83 2794.17 2807.83 2817.17 2830.83 2840.17
NDM18 6999.33 7082.92 7141.83 7225.42 7284.33 7367.92 7426.83
HSH18 28220 28366 28524 28670 28828 28974 29132
NKH18 22360 22425 22480 22545 22600 22665 22720
FTH18 7527.67 7559.33 7593.67 7625.33 7659.67 7691.33 7725.67
GCJ18 1211.73 1214.77 1217.63 1220.67 1223.53 1226.57 1229.43
SIK18 1528.17 1534.33 1543.17 1549.33 1558.17 1564.33 1573.17
HGK18 271.85 273.85 276.90 278.90 281.95 283.95 287.00
CLK18 67.50 68.13 69.14 69.77 70.78 71.41 72.42
WK18 516.67 524.58 535.67 543.58 554.67 562.58 573.67
SK18 867.92 871.83 876.92 880.83 885.92 889.83 894.92
CK18 358.92 361.08 364.42 366.58 369.92 372.08 375.42

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

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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