Daily Market View
Wednesday, August 29, 2018
| U.S Stock Market
U.S stocks were little changed yesterday, with the benchmark S&P 500 and the NASDAQ hovering at all-time highs, a day after the United States and Mexico reached an agreement on an overhaul of the North America Free Trade Agreement (NAFTA). The two countries agreed on Monday to overhaul NAFTA and U.S. officials expressed optimism a deal could be reached this week. The benchmark S&P 500 and the NASDAQ indexes started the session strongly to hit fresh all-time highs, as they did on Monday after the trade deal was announced, before pulling back. After the initial surge to the top of the range you tend to get a little bit of a pullback. You catch people taking profits at the all-time highs. The Dow Jones Industrial Average was up 14.73 points, or 0.06 percent, the S&P 500 was down 1.00 points, or 0.03 percent and the NASDAQ was down 0.46 points, or 0.01 percent. Nine of the 11 major S&P 500 sectors were lower, though five of them were down less than 0.1 percent.
|Major Economic Releases for Today|
|Japan Consumer Confidence Index||05:00||43.3||43.5|
|German GfK Consumer Confidence||06:00||10.6||10.6|
|French Gross Domestic Product (YoY)||06:45||1.7%||1.7%|
|U.S MBA Mortgage Applications||11:00|
|U.S Gross Domestic Product Price Index||12:30||3.0%||3.0%|
|U.S Personal Consumption||12:30||3.9%||4.0%|
|U.S Pending Home Sales (YoY)||14:00||-4.0%|
|DOE U.S Crude Oil Inventories||14:30|
|Japan Retail Trade (YoY)||23:50||1.2%||1.8%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average gained 0.06% to hit a new 6-months high. The best performers of the session on the Dow Jones Industrial Average were Walmart Inc., which rose 1.62% or 1.53 points to trade at 96.07 at the close. Meanwhile, Apple Inc. added 0.81% or 1.76 points to end at 219.70 and Cisco Systems Inc. was up 0.77% or 0.36 points to 46.95 in late trade. The worst performers of the session were Boeing Co, which fell 0.72% or 2.53 points to trade at 351.21 at the close. Coca-Cola Company declined 0.70% or 0.32 points to end at 45.37 and United Technologies Corporation was down 0.64% or 0.86 points to 134.50.
The NASDAQ index climbed 0.15%. The top performers on the NASDAQ Composite were Affirmed NV which rose 246.88% to 5.550, Asta Funding Inc. which was up 31.58% to settle at 3.75 and Brooks Automation Inc. which gained 30.91% to close at 39.60. The worst performers were Akcea Therapeutics Inc. which was down 25.33% to 24.73 in late trade, Regulus Therapeutics Inc. which lost 19.56% to settle at 0.246 and Seven Stars Cloud Group Inc. which was down 18.18% to 4.050 at the close.
Oil prices fell yesterday as some investors took profits on recent strong gains, but losses were limited the day after a U.S-Mexico trade agreement eased worries about tensions between the two countries. U.S West Texas Intermediate (WTI) crude futures fell 48 cents to $68.39 a barrel. Last week Brent marked a 5.6 percent gain, while WTI increased 4.3 percent. Market participants awaited industry data on U.S oil inventories that were expected to show a weekly drop in crude stocks. Official data is due today. Boosting market sentiment was news that the United States and Mexico agreed on Monday to overhaul the NAFTA. Canada’s top trade negotiator joins her Mexican and U.S. counterparts in Washington on Tuesday in a bid to remain part of the trilateral pact. Prices also drew support from findings of the monitoring committee of the Organization of the Petroleum Exporting Countries. Investors are more confident that supply should fall short of demand in the coming months.
|Precious and Base Metals
Gold turned negative yesterday as U.S Treasuries rose after the United States and Mexico struck a trade deal, with analysts saying ongoing U.S-China tensions would continue to weigh. U.S Treasury yields rose across maturities to weekly highs as global trade war fears abated a day after the United States and Mexico reached agreement on an overhaul of the North American Free Trade Agreement (NAFTA). On the margin, it’s not much, but real rates rose and that took some of the wind out of gold sails. The easing of trade tensions prompted investors to reduce safe-haven positions in U.S. government debt. Sales of long-term Treasuries, in particular, pressured prices and drove yields up more at the long end of the curve, indicating bullishness about the economic outlook. Spot gold lost 0.4 percent to $1,206.39 per ounce, earlier touching $1,214.28, its highest level since Aug. 10. U.S. gold futures for December delivery settled down $1.60, or 0.1 percent, at $1,214.40 per ounce. Often purchased as a hedge against geopolitical risk, gold is highly sensitive to rising yields, because it pays no yield, yet costs to insure and store. In recent months, investors have sought safety from the trade disputes in U.S. Treasuries, which entails buying dollars. But a weaker U.S dollar kept gold supported yesterday, as it generally boosts demand for dollar-denominated commodities. The U.S.-Mexico deal pushed the dollar lower against a basket of major currencies as investors sought alternative assets and the greenback’s safe-haven appeal declined. The main trade dispute, meaning U.S.-China conflict, is still going on so this NAFTA deal is just a small aspect. Net short positions in COMEX gold contracts increased for a sixth straight week to a new record. Spot silver declined 0.2 percent to $14.82 an ounce, after hitting $14.99, a nearly two-week high, while platinum lost 1.1 percent to $790.74, after touching a two-week high of $810.
Traditional AgricultureCorn futures edged down yesterday to extend losses into a second session, with ample global supply keeping prices near their lowest in six weeks. Soybean prices have been weighed down amid an outbreak of African swine flu China that could threaten demand for animal feed.
|Futures Settlement Price Tuesday, August 27, 2018|
|S & P 500||SPM18||2899||2906||2894.25||2899.25||0.75|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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