Daily Market View
Monday, November 19, 2018
| U.S Stock Market
U.S stocks closed mostly higher Friday after comments from President Donald Trump once again sparked hopes that a trade dispute with China could be resolved in the near term. But the NASDAQ bucked the trend to finish lower as a decline in chip maker shares, led by Nvidia Corp., dented sentiment in the technology sector. The Dow Jones climbed 123.95 points, or 0.5% and the S&P 500 index rose 6.07 points, or 0.2%. The NASDAQ shed 11.16 points, or 0.2%. For the week, the Dow fell 2.2%, the S&P 500 dropped 1.6%, while the NASDAQ declined 2.2%. Trump expressed guarded optimism over U.S.-China trade ties, telling reporters that it may not be necessary to add new tariffs or raise existing ones on Chinese imports, and that he doesn’t want to “put China in a bad position.” Trump and Chinese President Xi Jinping are scheduled to meet at the sidelines of the G-20 summit in Buenos Aires later this month. Uncertainties around tariff spats have taken center stage this week and the vacillating narratives around progress in negotiations continue to whipsaw equity benchmarks.
|Major Economic Releases for Today|
|U.K Rightmove House Prices (YoY)||00:01||0.9%|
||BOJ Outright Bond Purchase 1~3 Years||01:10|
||BOJ Kuroda speaks at EuroPlus in Tokyo||03:30|
|Euro-Zone Current Account s.a. (euros)||09:00||23.9b|
|Switzerland Domestic Sight Deposits||09:00||475.6b|
|Euro-Zone Construction Output w.d.a. (YoY)||10:00||2.5%|
|U.S NAHB Housing Market Index||15:00||67||68|
||U.S Fed’s Williams Speaks in Moderated Q&A in the Bronx||15:45|
|ANZ Roy Morgan Weekly Consumer Confidence Index||22:30||119.8|
Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.49%. The best performers of the session on the Dow Jones were The Travelers Companies Inc., which rose 2.53% or 3.18 points to trade at 128.77 at the close. Meanwhile, UnitedHealth Group Incorporated added 2.33% or 6.17 points to end at 271.11 and McDonald’s Corporation was up 2.20% or 4.03 points to 187.59 in late trade. The worst performers of the session were Walmart Inc., which fell 1.86% or 1.85 points to trade at 97.69 at the close. Boeing Co declined 1.65% or 5.62 points to end at 335.95 and Visa Inc. was down 1.17% or 1.66 points to 140.18.
The tech heavy NASDAQ index declined 0.15%. The top performers on the NASDAQ Composite were TESARO Inc. which rose 31.48% to 34.96, EMC Insurance Group Inc. which was up 30.26% to settle at 31.25 and The Dixie Group Inc. which gained 15.98% to close at 0.980. The worst performers were Rewalk Robotics Ltd which was down 45.45% to 0.24 in late trade, Limbach Holdings Inc. which lost 27.46% to settle at 6.05 and Euroseas Ltd which was down 25.45% to 1.230 at the close.
Oil ended slightly firmer after volatile trading on Friday, supported by expectations that the Organization of the Petroleum Exporting Countries would agree to cut output next month, though prices fell for the sixth straight week amid global oversupply concerns. OPEC kingpin Saudi Arabia is keen for the major producers to cut output by about 1.4 million barrels per day, around 1.5 percent of global supply, to support the market, sources told Reuters this week. But other producers, including Russia, have been reluctant to agree to a cut. U.S. crude settled unchanged at $56.46 a barrel after trading between $55.89 and $57.96. The contract, which had its steepest one-day loss in more than three years on Tuesday, fell 5.6 percent in the week, also its sixth straight weekly decline. After Tuesday’s sharp fall, the market was due for a slight correction, and was now stabilizing. OPEC ministers meet on Dec. 6 in Vienna to decide on production policy for the next six months amid a growing surplus in world markets.
|Precious and Base Metals
Gold rose as much as 1 percent on Friday as the dollar fell after U.S Federal Reserve officials made cautions comments that fed doubt about the outlook for interest rate hikes, while palladium hit a record high driven by worries about short supplies. Spot gold rose 0.7 percent to $1,221.04 an ounce. The session high was the highest since Nov. 8 at $1,225.29. Gold was on track to gain about 1 percent this week. U.S gold futures gained 0.5 percent to $1,221.50. Two Fed officials cautioned that global economic growth was slowing and the dollar fell to one-week lows against a basket of major currencies, making bullion cheaper for buyers using other currencies. When you get people talking about the economy slowing down, they may not raise rates so quickly or as aggressively and that is bearish for the dollar. Further support for gold came from weaker global stock markets and lower U.S. Treasury yields. A weaker dollar and lower yields are pretty much tailor made to benefit gold. Palladium climbed 1.7 percent to $1,176.70 an ounce, up more than 5 percnt since the start of the week. The metal hit a record high of $1,185.40 during the session, within a whisker of parity with gold for the first time in 16 years. The market is in a big deficit. There is a lot of funds interest in palladium because the funds like to buy something when it’s moving, but the supply is of concern now. Used mainly in emissions-reducing auto catalysts for vehicles, palladium, the only precious metal on track for an annual gain, was also helped by speculation Beijing may provide a stimulus to Chinese auto markets. Car dealers in the world’s biggest car market have been pushing for Beijing to support the sector. Silver rose 0.3 percent at $14.33 an ounce, on course for a weekly gain of over 1 percent. Copper was set to end the week 2.5 percent higher as signs of supply tightness supported prices, but worries about the outcome of the U.S.-China trade dispute limited gains.
Soybean futures ended higher on Friday after rebounding on President Donald Trump’s comments that his administration may not have to impose further tariffs on China, the world’s biggest soybean buyer. Wheat added to early advances on Friday.
|Futures Settlement Price Friday, November 16, 2018|
|S & P 500||SPM18||2731.75||2748.75||2708.5||2742||6.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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