Daily Market View
Friday, June 29, 2018
| U.S Stock Market
U.S stock-market indexes closed higher yesterday, with broad-based gains led by a rally in financials and technology sectors. The S&P 500 financials sector rose nearly 1% and snapped a 13-day slump, its longest losing streak ever. The S&P 500 index rose 16.68 points, a rise of 0.6%. The NASDAQ added 58.60 points, or 0.8%. The Dow Jones Industrial Average rose 98.46 points, a gain of 0.4%. The blue-chip average remained below its 200-day moving average as it came off its lowest close since early May. Equities have been volatile, with major indexes seeing big swings in both directions, often in the same session, and usually in response to changing headlines about trade policy. However, they remain in the fairly tight trading range that indexes have been mired in for months. Thus far this week, the Dow is off 1.4%, the S&P has lost 1.6%, and the NASDAQ has lost 2.5%. For the second quarter, the Dow is up 0.5%, the S&P has gained 2.9%, and the NASDAQ is up 6.2%. For 2018, the Dow has lost 2%, the S&P has gained 1.6%, and the NASDAQ has surged 8.7%.
|Major Economic Releases for Today|
|German Retail Sales (YoY)||06:00||1.8%||1.2%|
|German Unemployment Change (000’s)||07:55||-8k||-11k|
|German Unemployment Claims Rate s.a.||07:55||5.2%||5.2%|
|U.K Gross Domestic Product (YoY)||08:30||1.2%||1.2%|
|Euro-Zone Consumer Price Index Core (YoY)||09:00||1.0%||1.1%|
|Canada Gross Domestic Product (YoY)||12:30||2.6%||2.9%|
|U.S Personal Spending||12:30||0.4%||0.6%|
|U.S PCE Core (YoY)||12:30||1.9%||1.8%|
|U.S Chicago Purchasing Manager||13:45||60.0||62.7|
|Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.41% yesterday. The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc., which rose 3.14% or 1.55 points to trade at 50.86 at the close. Meanwhile, International Business Machines added 1.86% or 2.56 points to end at 140.04 and JPMorgan Chase & Co was up 1.64% or 1.69 points to 104.93 in late trade. The worst performers of the session were UnitedHealth Group Incorporated, which fell 1.32% or 3.27 points to trade at 244.90 at the close. Walmart Inc. declined 1.19% or 1.03 points to end at 85.86 and General Electric Company was down 0.93% or 0.13 points to 13.83.
The tech heavy NASDAQ index added 0.79% yesterday. The top performers on the NASDAQ Composite were MagneGas Corp which rose 51.92% to 0.562, VivoPower International PLC which was up 61.38% to settle at 2.34 and Leading Brands Inc. which gained 28.07% to close at 1.460. The worst performers were Arsanis Inc. which was down 78.01% to 4.00 in late trade, China Advanced Construction Materials which lost 29.79% to settle at 4.950 and Differential Brands Group Inc. which was down 26.61% to 4.000 at the close.
Oil prices climbed yesterday, with U.S. crude hitting a three-and-a-half year high, bolstered by supply concerns due to U.S sanctions that could cause a large drop in crude exports from Iran. Crude futures rose 69 cents, nearly 1 percent, to settle at $73.45 a barrel. It reached $74.03 earlier in the session, the highest since Nov. 26, 2014. The United States this week demanded countries halt imports of Iranian oil from November; a hardline position the Trump administration hopes will cut off funding to Tehran. Yesterday, officials said they would work with countries on a case-by-case basis. China, the biggest importer of Iran’s oil, has not committed to the U.S. position. The U.S. demands follow a decision by the Organization of the Petroleum Exporting Countries last week to increase production to try to moderate oil prices that have rallied more than 40 percent over the last year.
|Precious and Base Metals
Gold fell to its lowest in more than six months yesterday as the dollar held near a one-year high, propelled by mounting pressure from a U.S.-driven trade dispute that has led investors to dump equities. Global equities slipped to their lowest in almost three months, buffeted again after U.S. President Donald Trump and White House economic adviser Larry Kudlow outlined plans to clamp down on Chinese acquisitions of sensitive American technologies. The trade tensions pushed the dollar to test a one-year high against a currency basket. A strong dollar makes dollar-priced gold costlier for non U.S. investors and while falling equities, seen as risky assets, usually help safe-haven gold, they have failed to do so this time. There is some safe-haven demand going into gold but not as much as is going elsewhere, like the dollar or treasuries or safe-haven currencies like the franc. Spot gold was flat at $1,250.80 an ounce. Earlier, it touched $1,248.21, its lowest since mid-December. U.S. gold futures for August delivery dropped 0.3 percent at $1,252.70 an ounce. Investors are positioning for a potentially fraught meeting of European Union leaders to discuss issues such as migration, Brexit and trade. They are also looking for indications on the survival prospects for the fractious new German coalition. Nowadays, there is no safe-haven appeal for gold; people are tracking other assets as safe havens. In a nod to dollar bulls, Boston Federal Reserve President Eric Rosengren on Wednesday said the central bank should continue to raise interest rates gradually to lower the risk of a major policy error. The dollar index’s strength is mainly powered by hopes for higher rates and rising yields and there seems to be no change in this any time soon. Indicating falling demand for gold, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped 0.36 percent to 821.69 tonnes on Wednesday. In other precious metals, spot silver was 0.3 percent higher at $16.10 an ounce. In the prior session, it touched its lowest since mid-December at $15.94.
Wheat, Corn, and Soybeans
Wheat futures edged lower falling for four in five sessions as ample global supplies and pressure from harvest of the U.S winter crop weighed on the market.
|Futures Settlement Price Thursday, June 28, 2018|
|S & P 500||SPM18||2705||2726.25||2693||2719.5||13.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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