Daily Market View
Thursday, November 15, 2018
| U.S Stock Market
U.S stocks fell for a fifth straight day as investors remained on edge over trade, political turmoil and economic growth. Crude halted its longest losing streak on record. The S&P 500 Index slumped to the lowest in two weeks after a key Democrat raised questions about the revamped Nafta deal and selling in Apple Inc. rekindled worry that megacap tech earnings have peaked. An afternoon respite from the selling sparked by U.K Prime Minister Theresa May clinching a Brexit deal with her cabinet gave way to a tumble into the close. Goldman Sachs’s woes continued, with the bank down 13 percent in four days to the lowest since November 2016. Shares of big banks such as Bank of America and JPMorgan Chase dropped about 2%, while Apple and Netflix slumped more than 2.5%. Stocks’ failure to gain momentum after a modest advance in the wake of last week’s midterm elections has made some investors nervous that continuing anxiety about a weaker global economy and tighter financial conditions could continue.
|Major Economic Releases for Today|
|Australia Employment Change||00:30||20.0k||5.6k|
|Australia Unemployment Rate||00:30||5.1%||5.0%|
|U.S Philadelphia Fed Business Outlook||13:30||20||22.2|
|U.S Retail Sales Advance (MoM)||13:30||0.5%||0.1%|
|U.S Retail Sales Ex Auto and Gas||13:30||0.4%||0.0%|
|U.S Initial Jobless Claims||13:30||214k||214k|
|Canada Existing Home Sales (MoM)||14:00||-0.2%||-0.4%|
|DOE U.S. Crude Oil Inventories||16:00||5783k|
||Fed’s Powell Reviews Post-Hurricane Harvey Recovery Efforts||16:30|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.81%. The best performers of the session on the Dow Jones Industrial Average were Dow DuPont Inc., which rose 0.89% or 0.51 points to trade at 57.98 at the close. Meanwhile, Home Depot Inc. added 0.50% or 0.90 points to end at 179.90 and Verizon Communications Inc. was up 0.48% or 0.28 points to 58.94 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 2.97% or 3.77 points to trade at 123.04 at the close. Apple Inc. declined 2.82% or 5.43 points to end at 186.80 and JPMorgan Chase & Co was down 2.06% or 2.26 points to 107.33.
The NASDAQ index fell 0.90%. The top performers on the NASDAQ Composite were Sphere 3D Corp which rose 58.18% to 2.610, Empire Resorts Inc. which was up 53.93% to settle at 13.130 and Presbia PLC which gained 24.08% to close at 0.906. The worst performers were Seven Stars Cloud Group Inc. which was down 48.77% to 1.670 in late trade, Resonant Inc. which lost 42.21% to settle at 1.670 and Five Star Quality Care Inc. which was down 31.97% to 0.435 at the close.
Oil prices finished higher yesterday with U.S. benchmark crude putting an end to its record 12-session streak of declines, as traders weighed rising crude supplies against lingering questions about demand. Natural-gas futures, meanwhile, saw a spectacular climb of about 18%, their biggest in more than 14 years as cold weather forecasts continued to feed concerns about tight U.S. supplies. West Texas Intermediate oil for December delivery rose 56 cents, or 1%, to settle at $56.25 a barrel, after settling Tuesday at $55.69 on the New York Mercantile Exchange. That was the lowest front-month contract finish since Nov. 16, 2017, and biggest one-day percentage decline, at over 7%, in more than three years, according to Dow Jones Market Data. The dramatic selling across the oil markets in recent days has come to a brief pause yesterday but many remain stunned by the acceleration in aggressive momentum that has transpired over the past couple of sessions.
|Precious and Base Metals
Gold rose 1 percent yesterday, helped investors covered their short positions after the metal held the key $1,200 level. Spot gold was up 0.90 percent at $1,212.20 per ounce. This was the metal’s biggest one-day gain in nearly two weeks. Prices had slipped to their lowest since Oct. 11 at $1,195.90 in the previous session. U.S gold futures settled up $8.70, or 0.72 percent, at $1,210.10. The dollar has weakened a little bit and that has helped gold to catch a bid. There has also been some short covering after gold held the $1,200 level well. Also, the rebound in oil prices has given some support from the inflationary point of view. An index that tracks the dollar versus a basket of six major currencies was down 0.2 percent after hitting a 16-month high on Monday. The key driver in the near term continues to be currency movements. Factors including increased buying by central banks, the return of interest amongst exchange-traded fund (ETF) investors and seasonal demand for physical gold are acting as a cushion to the downside. Holdings of the world’s largest gold-backed ETF, SPDR Gold Trust, remained near their highest level in more than two months. Bullion has fallen about 11 percent from a peak in April as investors instead flocked to the dollar, with U.S.-China trade friction unfolding against a background of higher U.S interest rates. The dollar has benefited over the past week from expectations for further U.S interest rate hikes, as well as concerns over Italy’s budget and ongoing Brexit talks. The U.S central bank is expected to increase rates in December for a fourth time this year. Rising U.S interest rates increase the opportunity cost of holding non-yielding bullion. Among other precious metals, silver rose 0.86 percent to $14.10 per ounce, after earlier hitting $13.85 – its lowest since Jan. 21, 2016. There is so much above ground inventory that is causing silver prices to fall.
Soybean futures edged higher yesterday after the U.S Department of Agriculture pegged the pace of the harvest behind market forecasts. Corn also rose, rebounding from losses of more than 1 percent in the previous session, while wheat was little changed. Analysts said soybeans had drawn support from the latest estimates of the U.S harvest.
|Futures Settlement Price Wednesday, November 14, 2018|
|S & P 500||SPM18||2730.5||2748.25||2686.25||2698.5||-28.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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