Daily Market View
Thursday, November 01, 2018
| U.S Stock Market
Stocks rose sharply yesterday for a second straight day as strong earnings from General Motors and Facebook lifted sentiment. But the major averages still posted big October losses. The Dow Jones Industrial Average surged 241.12 points, led by Visa, bringing its two-day gain to about 650 points. The S&P 500 gained 1.1 percent as consumer discretionary and energy outperformed. The NASDAQ advanced 2 percent and briefly climbed out of correction territory. General Motors shares spiked 9.1 percent after the company reported quarterly results that easily topped expectations. The company said it sold fewer cars in the third quarter, but at a higher price, boosting its bottom line. Facebook shares rose 3.8 percent after the company reported on Tuesday better-than-expected earnings. CEO Mark Zuckerberg said during the company’s earnings call Facebook plans to invest significantly in its business next year. The stock’s rise on Wednesday led Amazon, Apple, Netflix, and Alphabet higher.
|Major Economic Releases for Today|
|U.S Challenger Job Cuts (YoY)||11:30||70.9%|
|Bank of England Bank Rate||12:00||0.75%||0.75%|
|BOE Asset Purchase Target||12:00||435b||435b|
||Bank of England Inflation Report||12:00|
||BOE’s Carney speaks at press conference in London||12:30|
|U.S Initial Jobless Claims||12:30||212k||215k|
|RBC Canadian Manufacturing PMI||13:30||54.8|
|U.S ISM Manufacturing||14:00||59||59.8|
|U.S ISM Employment||14:00||58.8|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.97% yesterday. The best performers of the session on the Dow Jones Industrial Average were Visa Inc. which rose 3.83% or 5.09 points to trade at 137.85 at the close. Meanwhile, Caterpillar Inc. added 3.29% or 3.86 points to end at 121.32 and Microsoft Corporation was up 2.97% or 3.08 points to 106.81 in late trade. The worst performers of the session were Walmart Inc. which fell 2.09% or 2.14 points to trade at 100.28 at the close. Verizon Communications Inc. declined 1.87% or 1.09 points to end at 57.09 and Intel Corporation was down 1.84% or 0.88 points to 46.88.
The tech heavy NASDAQ index added 2.01% yesterday. The top performers on the NASDAQ Composite were Intersections Inc. which rose 102.29% to 3.540, AEterna Zentaris Inc. which was up 67.69% to settle at 2.180 and Strongbridge Biopharma plc which gained 58.02% to close at 6.4000. The worst performers were Spartan Motors Inc. which was down 40.02% to 6.73 in late trade, Clovis Oncology Inc. which lost 29.98% to settle at 11.63 and Nextgen Healthcare Inc. which was down 24.68% to 14.77 at the close.
Oil futures settled lower yesterday as a weekly rise in U.S crude supplies nearly matched market expectations and product stocks declined. Prices also posted their biggest monthly percentage decline in more than two years as rising production and the potential for a slowdown in energy demand outweighed expectations for further declines in Iranian oil exports, with U.S sanctions set to begin next week. West Texas Intermediate crude for December delivery fell 87 cents, or 1.3%, to settle at $65.31 a barrel on the New York Mercantile Exchange. The Energy Information Administration reported Wednesday that domestic crude supplies rose by 3.2 million barrels for the week ended Oct. 26. That followed five consecutive weeks of gains. Analysts surveyed by S&P Global Platts had forecast a rise of 3.3 million barrels, while the American Petroleum Institute on Tuesday reported an increase of 5.7 million barrels. Gasoline stockpiles declined by 3.2 million barrels last week.
|Precious and Base Metals
Gold slid to its lowest in nearly three weeks yesterday as the dollar jumped and stock markets regained momentum after a spate of heavy losses, but the metal remained on track for its biggest monthly gain since January. Gold is set to end a six-month run of losses in October, the longest such streak since a period from August 1996 to January 1997, as it heads for a more than 2 percent gain this month on intense stock market volatility. Spot gold was down 0.5 percent at $1,215.96 an ounce, having touched its lowest since Oct. 11 at $1,214.07. U.S gold futures fell 0.6 percent to $1,217.50. Analysts said they saw a stronger dollar ahead and predicted gold could struggle to continue its October rally. The dollar index looks like it’s going higher and there is uncertainty related to the mid-term elections next week. If there are signs that the Republicans are going to do well, this will probably lead to yet more dollar strength. The mid-term elections on Nov. 6 will determine whether the Republican or Democratic Party controls the U.S Congress. The dollar index climbed to a 16-month high while the Yuan fell to its weakest level against the dollar since May 2008. The dollar versus the emerging market currencies, especially the Chinese Yuan, is something the market is looking at. The depreciating Yuan is the key reason why gold has been weak. Gold benefited quite a lot from the equity market jitters we had in the past week or so. Now the equity markets are calming a bit and trying to build a bottom at these lows, which is also negative for gold. European shares were helped by positive momentum in global stock markets, bringing some relief after a brutal October in which equities suffered one of their worst drops in a decade and spooked investor confidence. Gold has fallen by about 11 percent since April, hit by rising U.S. interest rates and a global trade war that threatens economic growth, prompting investors to rush to the safety of the dollar.
Corn futures edged lower yesterday as friendly weather was expected to see farmers advance harvesting, pushing prices to a five-day low. Wheat fell for a second consecutive session, while soybeans were little changed. Corn was under pressure as weather forecasts called for benign weather.
|Futures Settlement Price Wednesday, October 31, 2018|
|S & P 500||SPM18||2690.75||2737||2681.75||2705.75||21.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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