Daily Market View
Wednesday, October 31, 2018
| U.S Stock Market
U.S stocks snapped higher yesterday as markets eased some of the month’s brutal losses before the end of October. The S&P 500 rallied more than 1.5 percent to close at 2,682.63 as communications, energy and materials stocks carried the index out of correction territory. Shares of Charter Communications, DISH Network and Twitter all rose more than 4 percent each. The Dow Jones Industrial Average surged by 431.72 points. Goldman Sachs, McDonald’s and Boeing all outperformed the broader blue-chip index. The tech-heavy NASDAQ rose more than 1.5 percent. That index climbed thanks to a 5.2-percent rally in Intel. The rebound on Tuesday followed a shaky start to the week in the prior session that saw stocks giving up sharp gains. The Dow traveled more than 900 points on Monday. Market participants cited the possibility of more U.S.-China tariffs, a drop in tech stocks and worries over higher interest rates for the decline. After yesterday’s comeback, the Dow is down 5.9 percent this month, still its worst performance since August 2015.
|Major Economic Releases for Today|
|China Manufacturing PMI||01:00||50.6||50.8|
|BOJ Rate Decision||03:08||-0.10%||-0.10%|
|BOJ 10-Yr Yield Target||03:08||0.00%||0.00%|
|Euro-Zone Unemployment Rate||10:00||8.1%||8.1%|
|Euro-Zone Consumer Price Index Core (YoY)||10:00||1.1%||0.9%|
|U.S MBA Mortgage Applications||11:00||4.9%|
|U.S ADP Employment Change||12:15||187k||230k|
|Canada Gross Domestic Product (YoY)||12:30||2.4%||2.4%|
|U.S Chicago Purchasing Manager||13:45||60||60.4|
|Dow Jones Industrial Average
The Dow Jones Industrial Average gained 1.77% yesterday. The best performers of the session on the Dow Jones Industrial Average were Intel Corporation, which rose 5.20% or 2.36 points to trade at 47.76 at the close. Meanwhile, Boeing Co added 4.27% or 14.32 points to end at 349.91 and Nike Inc. was up 3.21% or 2.32 points to 74.51 in late trade. The worst performers of the session were International Business Machines, which fell 3.54% or 4.24 points to trade at 115.40 at the close. Visa Inc. declined 1.17% or 1.57 points to end at 132.76 and Pfizer Inc. was down 0.79% or 0.34 points to 42.89.
The tech heavy NASDAQ index climbed 1.58%. The top performers on the NASDAQ Composite were Electro Scientific Industries Inc. which rose 91.09% to 28.53, Heidrick & Struggles International which was up 23.88% to settle at 36.37 and Aptevo Therapeutics Inc. which gained 23.37% to close at 3.590. The worst performers were Avinger Inc. which was down 44.58% to 0.33 in late trade, Novume Solutions Inc. which lost 43.08% to settle at 0.74 and LM Funding America Inc. which was down 41.94% to 1.98 at the close.
Oil prices climbed for the first time in three days today, rising around 1 percent ahead of the start of U.S. sanctions against Iran next week and as stock markets clawed back some of the losses they racked up this month. U.S crude futures advanced 55 cents, or 0.9 percent, to $66.73 a barrel today. They dropped 1.3 percent the day before, after hitting their lowest since Aug. 17 at $65.33 a barrel. Traders said oil received some support from stock markets, which pulled back from 20-month lows yesterday amid pledges by China to support its markets. Analysts said oil prices were also supported by the upcoming U.S. sanctions against Iran’s crude exports that will start on Nov. 4. Imports of Iranian crude oil by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of the sanctions on Tehran, government and ship-tracking data showed. Oil has been caught in the global financial market slump this month
|Precious and Base Metals
Gold prices fell to a more than two-week low today as equities gained and the dollar touched multi-month highs after upbeat economic data indicated a robust U.S economy. The yellow metal, however, remained on track to end a run of six straight monthly losses, the longest such streak since early 1997. Spot gold was 0.5 percent lower at $1,216.85 an ounce at 0750 GMT, having touched its lowest since Oct. 12 at $1,215.35 earlier in the session. It has risen more than 2 percent so far in October, the biggest monthly gain since January. U.S gold futures fell 0.5 percent to $1,218.7 an ounce. Gains in dollar is impacting dollar-denominated gold negatively. After robust recent economic data, the U.S. non-farm payroll data is also expected to be positive, so possibly dollar strengthening might continue for the next couple of days. The greenback today scaled 16-month highs versus its key rivals on continued strength in the U.S economy. Gold prices have slipped about 11 percent from their April peak as investors turned to the dollar as a safe-haven with the trade war unfolding against a backdrop of higher U.S. interest rates. A stronger dollar makes dollar-denominated bullion more expensive for users of other currencies while higher interest rates reduce the attraction of non-yielding gold. As long as inflation doesn’t become a real threat or equities plunge much further from current levels, many investors will prefer yielding instruments than investing in gold, and that’s what the dollar is providing. Gold is likely to trade within a narrow range of $1,200 – $1,250, until new factors emerge. It needs a bigger trigger to see another rally similar to the one seen since the beginning of the month. The market is also awaiting the verdict of next week’s U.S. mid-term elections for a direction. The midterm elections, on Nov. 6, will determine whether the Republican or Democratic Party controls the U.S Congress. Among other precious metals, silver was down 0.6 percent at $14.35 per ounce after falling to an over two-week low of $14.31 earlier in the day.
Soybean futures slid to their lowest prices in about six weeks in yesterday’s session as advancing domestic harvests increased crop supplies. Corn and wheat futures also fell.
|Futures Settlement Price Tuesday, October 30, 2018|
|S & P 500||SPM18||2638.75||2688.75||2633.25||2684.25||41|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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