Daily Market View
Thursday, June 21, 2018
U.S Stock Market
|DJIA||S & P 500||NASDAQ|
U.S stocks stabilized yesterday after escalating worries about U.S.-China trade relations triggered a selloff in the previous session. Investors this week have been more seriously considering the chance that the world’s two largest economies could embark on a growth-hindering trade war, although many still expect the two countries to ultimately dial down their plans. Stocks, commodities and bond yields fell Tuesday after President Donald Trump called for his administration to identify $200 billion in Chinese goods for a fresh round of tariffs. The Dow Jones Industrial Average was recently up 7 points, or less than 0.1% after entering the day on a six-session losing streak—its longest since March 2017. The S&P 500 was up 0.4%, and the tech-heavy NASDAQ rose 1%. Some investors aren’t sure that trade tensions will escalate, and major indexes have tended to stabilize following initial drops as the trade fights have escalated. Despite recent trade fears and anxiety about higher interest rates, some investors think steady earnings growth will boost stocks moving forward.
|Major Economic Releases for Today|
|SNB Sight Deposit Interest Rate||07:30||-0.75%||-0.75%|
|SNB 3-Month Libor Upper Target Range||07:30||-0.25%||-0.25%|
|Bank of England Bank Rate||11:00||0.50%||0.50%|
|BOE Asset Purchase Target||11:00||435b||435b|
|U.S Initial Jobless Claims||12:30||220k||218k|
|U.S Philadelphia Fed Business Outlook||12:30||29.0||34.4|
|U.S House Price Index (MoM)||13:00||0.5%||0.1%|
|Euro-Zone Consumer Confidence||14:00||0.0||0.2|
||BOE Governor Mark Carney Delivers Mansion House Speech||20:15|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.17%. The best performers of the session on the Dow Jones Industrial Average were Microsoft Corporation, which rose 1.00% or 1.01 points to trade at 101.87 at the close. Meanwhile, Intel Corporation added 1.04% or 0.55 points to end at 53.48 and Walt Disney Company was up 0.99% or 1.05 points to 107.15 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 2.47% or 3.17 points to trade at 124.99 at the close. McDonald’s Corporation declined 1.46% or 2.41 points to end at 162.56 and International Business Machines was down 0.88% or 1.27 points to 142.63.
The NASDAQ index climbed 0.72%. The top performers on the NASDAQ Composite were Naked Brand Group Inc. which rose 434.59% to 8.500, CLPS Inc. which was up 55.67% to settle at 16.75 and Forward Industries Inc. which gained 54.93% to close at 2.200. The worst performers were Anika Therapeutics Inc. which was down 37.62% to 28.77 in late trade, Gevo Inc. which lost 37.13% to settle at 12.2600 and Helios and Matheson Analytics Inc. which was down 30.65% to 0.312 at the close.
Prices for U.S benchmark oil futures settled with a gain yesterday, at a nearly one-week high, after U.S government data revealed the biggest weekly decline in U.S crude supplies since January. Global benchmark Brent crude prices, however, finished lower as traders monitored comments from major oil producers gathering for the much-anticipated Organization of the Petroleum Exporting Countries meeting at the end of the week. July West Texas Intermediate crude which expired at the end of the trading session, added $1.15, or 1.8%, to settle at $66.22 a barrel on the New York Mercantile Exchange, the highest finish for the contract since June 14. August WTI crude which is now the front-month contract, tacked on 81 cents, or nearly 1.3%, to $65.71. The U.S EIA reported yesterday that crude supplies dropped by 5.9 million barrels for the week ended June 15, while the API on Tuesday reported a decline of 3 million barrels.
|Precious and Base Metals
Gold prices dropped, remaining near a six-month low yesterday as the U.S. dollar hovered around 11 month peaks but was offset by festering global trade tensions, while platinum hit a 2-1/2-year trough. Rising U.S. interest rates also pressured bullion. Spot gold lost 0.2 percent at $1,272.44. U.S. gold futures for August delivery settled down $4.10, or 0.3 percent, at $1,274.50 per ounce. Trade tensions between the United States and China are showing no signs of easing. On Tuesday, a White House trade adviser said Beijing had underestimated the U.S. president’s resolve to impose more tariffs. That followed Washington threatening to impose tariffs on $200 billion of Chinese goods and Beijing saying it was raising tariffs on $50 billion of U.S goods. Gold, seen as a safe haven asset, usually gains from geopolitical or economic tensions but has struggled this time around because the dollar has risen strongly, making dollar-priced gold costlier for non-U.S. investors. This environment we’ve had with interest higher rates and a higher U.S. dollar has kind of halted the rise of gold at least for the short term. Higher U.S. interest rates make gold a less attractive investment since it does not bear interest. However, the reason it hasn’t fallen as much as you’d expect is that safe-haven demand has sustained the price. The U.S. dollar was little changed, hovering near an 11-month peak against a basket of major currencies as China’s signal of a tolerance of a stronger yuan offset anxiety about the global trade conflict. World markets recovered from a recent selloff on the trade tensions, while Treasury yields rose after the Federal Reserve chairman said the U.S. central bank should continue with a gradual pace of interest rate increases. Fed Chairman Jerome Powell said the pace should stay the same given that the labor market does not seem to be overly tight. Silver gained 0.3 percent at $16.31 an ounce.
Wheat, Corn, and Soybeans
Soybean futures lost ground for a second day yesterday after hitting their lowest in almost a decade in the last session with prices pressured by escalating U.S.-China trade war. Corn slid for a sixth session, while wheat was unmoved after dropping to its lowest since late April on Tuesday.
|Futures Settlement Price Wednesday, June 20, 2018|
|S & P 500||SPM18||2765.25||2778.25||2757||2771.5||5|
|Daily Swings (The Pivot Levels)|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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