Daily Market View
Wednesday, June 27, 2018
| U.S Stock Market
U.S stocks bobbed higher yesterday as technology and consumer-focused companies regained a sliver of their losses from the day before. Oil prices and energy companies jumped as the U.S. pressed its allies to stop importing oil from Iran. Coming off their worst loss since early April, stocks were on track for hefty gains Tuesday afternoon but weakened late in the day. Technology companies like Apple bounced back after abrupt losses on Monday. General Electric led industrial companies higher after it said it would shrink even further by spinning off its health care business and its oil service unit. Banks and other financial companies took losses as bond yields and interest rates remained well off their highs from last month. Household goods makers also slipped. The S&P 500 index gained 5.99 points, or 0.2 percent. It fell 1.4 percent Monday. The Dow Jones Industrial Average gained 30.31 points, or 0.1 percent. The NASDAQ composite added 29.62 points, or 0.4 percent after it plunged 2.1 percent a day ago. In commodities trading, gold lost 0.7 percent to $1,259.90.
|Major Economic Releases for Today|
|New Zealand ANZ Activity Outlook||01:00||13.6|
||BOE’s Carney Speaks About Financial Stability Report||08:30|
|U.S MBA Mortgage Applications||11:00||5.1%|
|U.S Wholesale Inventories (MoM)||12:30||0.2%||0.1%|
|U.S Advance Goods Trade Balance||12:30||-$69.0b||-$68.2b|
|U.S Durable Goods Orders||12:30||-0.9%||-1.6%|
|U.S Pending Home Sales (YoY)||14:00||0.4%|
|DOE U.S. Crude Oil Inventories||14:30||-5914k|
||BOC Governor Stephen Poloz Gives Speech in Victoria||19:00|
|Dow Jones Industrial Average
The Dow Jones Industrial Average gained 0.12% yesterday. The best performers of the session on the Dow Jones Industrial Average were General Electric Company, which rose 7.76% or 0.99 points to trade at 13.74 at the close. Meanwhile, Chevron Corp added 1.26% or 1.55 points to end at 124.16 and Apple Inc. was up 1.24% or 2.26 points to 184.43 in late trade. The worst performers of the session were Intel Corporation, which fell 2.05% or 1.04 points to trade at 49.67 at the close. The Travelers Companies Inc. declined 0.89% or 1.10 points to end at 122.62 and Caterpillar Inc. was down 0.76% or 1.04 points to 135.54.
The tech heavy NASDAQ index gained 0.39% yesterday. The top performers on the NASDAQ Composite were China Lending Corp which rose 145.55% to 4.69, Ascent Capital Group Inc. which was up 44.23% to settle at 3.75 and Sophiris Bio Inc. which gained 34.82% to close at 3.020. The worst performers were Gevo Inc. which was down 23.35% to 7.6500 in late trade, Achaogen Inc. which lost 20.22% to settle at 9.590 and Sellas Life Sciences Group Inc. which was down 18.22% to 3.7700 at the close.
Crude prices surged by more than 3 percent yesterday after the U.S State Department said it will require companies to cut all oil imports from Iran to zero by November. The announcement exacerbates concerns about a shortage of oil at a time when Venezuela’s production is in terminal decline and the market is grappling with short-term supply disruptions from Canada and Libya. Last week, OPEC and other producers including Russia agreed to raise output to prevent price spikes. U.S. West Texas Intermediate crude futures ended Tuesday’s session up $2.45 a barrel, or 3.6 percent, to $70.53, erasing earlier losses and breaking above $70 for the first time since May 25. Oil prices rose further in late electronic trading after API data showed a large decline in oil inventories of 9.2 million barrels in the latest week. Government supply data is expected today. The U.S is continuing its decision to completely isolate Iran.
|Precious and Base Metals
Gold hit its lowest in over six months yesterday as a selloff in global risk assets eased and the precious metal remained under pressure from the prospect that rising U.S. interest rates will further support the dollar. Modest gains from Europe’s main bourses relieved nervy investors after the latest escalation in an increasingly global trade dispute pummeled Wall Street and sent China into bear market territory. Rising equities tend to weigh on gold, which is widely seen as a safe-haven asset compared with higher-risk stocks. Spot gold dropped 0.6 percent at $1,257.53 per ounce, having hit its weakest since mid-December at $1,254.16. U.S gold futures for August delivery settled down $9, or 0.7 percent, at $1,259.90 per ounce. The dollar rose against its rivals as the escalating concerns of a trade conflict between the world’s two biggest economies pushed markets to unwind their bets in high-yielding currencies. A stronger dollar makes dollar-denominated gold costlier for non-U.S. investors. The dollar has been a lot stronger, that’s the main driver here. Also, gold hasn’t seemed to benefit from the trade turmoil. Gold is being driven by some capitulation in investors, rather than being primarily driven by the dollar. Gold-backed exchange-traded funds tracked by Thomson Reuters were headed for their weakest month since July 2017, as investors covered losses in equities, commodities and other markets caused by tariff disputes. Trade tensions aren’t helping gold at all, there is only one clear trend which is skewed to the downside. Enhancing tensions, U.S. Treasury Secretary Steven Mnuchin said forthcoming investment restrictions from the department will not be specific to China, but would apply “to all countries that are trying to steal our technology. Helping the dollar, Fed Chairman Jerome Powell last week said the U.S. central bank should continue with a gradual pace of interest rate rises. Meanwhile, silver lost 0.3 percent at $16.26 an ounce, slipping to $16.10, its lowest since May 1.
Wheat, Corn and Soybeans
Wheat futures sagged, with the K.C. hard red winter wheat market hitting its lowest in nearly five months on fund-driven long liquidation and pressure from the harvest in the southern Plains.
|Futures Settlement Price Tuesday, June 26, 2018|
|S & P 500||SPM18||2721.5||2735||2714.75||2728.5||6.25|
|Daily Swings (The Pivot Levels)|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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