Daily Market View
Friday, November 29, 2018
| U.S Stock Market
U.S stocks traded lower yesterday as investors’ hopes of a trade deal between China and the U.S dimmed. The Dow Jones Industrial Average fell 71 points, while the S&P 500 pulled back 0.3 percent. The NASDAQ fell 0.4 percent. The market fell to its low of the day — with the Dow dropping more than 160 points — after the South China reported that White House advisor Peter Navarro would be attending the dinner between President Donald Trump and Chinese leader Xi Jinping in Buenos Aires at the G-20. CNBC later confirmed Navarro’s attendance. News of his attendance dampened hopes that a trade deal could be hatched at the dinner given his longstanding hawkish tone on U.S-China trade. Earlier this month, Navarro said any deal between the U.S. and China would be on Trump’s terms, not Wall Street’s. These comments were later disavowed by Larry Kudlow, director of the National Economic Council. Trading in U.S stocks became even more volatile after Dow Jones reported, citing sources, the U.S and China were looking into a deal to de-escalate trade tensions.
|Major Economic Releases for Today|
|China Manufacturing PMI||01:00||50.2||50.2|
|Japan Consumer Confidence Index||05:00||43.2||43|
|Japan Housing Starts (YoY)||05:00||-0.1%||-1.5%|
|German Retail Sales (YoY)||07:00||1.4%||-2.6%|
|Euro-Zone Unemployment Rate||10:00||8.0%||8.1%|
|Euro-Zone Consumer Price Index Core (YoY)||10:00||1.1%||1.1%|
|Canada Gross Domestic Product (YoY)||13:30||2.3%||2.5%|
|U.S Chicago Purchasing Manager||14:45||58.5||58.4|
|Baker Hughes U.S Rig Count||18:00||1079|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.11%. The best performers of the session on the Dow Jones Industrial Average were Boeing Co, which rose 2.72% or 9.06 points to trade at 342.56 at the close. Meanwhile, Pfizer Inc. added 1.36% or 0.61 points to end at 45.51 and Merck & Company Inc. was up 0.88% or 0.68 points to 77.91 in late trade. The worst performers of the session were Intel Corporation, which fell 2.37% or 1.16 points to trade at 47.70 at the close. Visa Inc. declined 1.61% or 2.28 points to end at 139.10 and American Express Company was down 1.40% or 1.58 points to 111.31.
The NASDAQ index fell 0.25%. The top performers on the NASDAQ were Adial Pharmaceuticals Inc. which rose 100.00% to 2.80, Tonix Pharmaceuticals Holding Corp which was up 83.42% to settle at 6.970 and Kirklands Inc. which gained 34.13% to close at 10.10. The worst performers were ShiftPixy Inc. which was down 32.35% to 2.99 in late trade, Bio Path Holdings Inc. which lost 26.57% and Cleantech Solutions International Inc. which was down 24.23%.
Oil reversed course and rose yesterday, after industry sources said Russia had accepted the need to cut production, together with OPEC. The price is still set for its biggest one-month fall in November since the depths of the financial crisis in 2008, having lost more than 22 percent so far. U.S crude futures rose 81 cents, or 1.6 percent, to $51.10, after earlier dropping below $50 for the first time in over a year. OPEC and non-OPEC producers meet in Vienna next week to discuss a new round of supply cuts of 1 million to 1.4 million bpd and possibly more to prop up prices. The Russian Energy Ministry held a meeting with the heads of domestic oil producers on Tuesday. Russian President Vladimir Putin, whose country is the world’s second biggest oil producer, said on Wednesday he was in touch with OPEC and ready to continue cooperation on supply if needed, but he was satisfied with an oil price of $60. U.S. crude inventories have hit their highest in a year, and are now only 80 million barrels below March 2017’s record 535 million barrels.
|Precious and Base Metals
Gold rose yesterday after Federal Reserve Chair Jerome Powell’s comments boosted perception the central bank would go slow on interest rate hikes next year, while palladium was trading at record levels due to a shortage in supply. Spot gold was up 0.3 percent at $1,224.86 per ounce. U.S gold futures were steady at $1,224.1 per ounce. The hint from the Fed that they are closer to ending the current rate hike cycle caught the markets somewhat by surprise. Treasury yields and dollar dropped back, and that was quite supportive of gold. Higher interest rates increase bond yields and tend to make non-yielding bullion less attractive. They also tend to boost the dollar, in which gold is priced. Gold prices jumped as much as 1 percent after Powell’s speech on Wednesday, recovering from a two-week low of $1,210.65 hit earlier. But gains in the precious metal were limited as Powell’s dovish tone helped revive risk appetite, driving world stocks to their highest in more than two weeks, while the dollar and bond yields fell. Powell said the central bank’s policy rate is now “just below” estimates of a level that neither brakes nor boosts a healthy U.S. economy. Investors were waiting the release of the minutes of the U.S central bank’s November meeting for further clues on the Fed’s monetary tightening path. Palladium was down 0.1 percent at $1,182.50 per ounce, after earlier hitting a record high of $1,186.50. This is a very fundamental story of demand outstripping the supply. It’s been six or seven years of sustained market deficit, which has kept the market exceedingly tight. Spot silver was down 0.2 percent to $14.29 per ounce. Platinum rose 0.2 percent to $823 per ounce after falling to a seven-week low of $809.50 on Wednesday. Copper also extended gains yesterday as investors bought riskier assets on speculation U.S interest rates may be near a peak.
Wheat gained more ground on expectations of higher demand for U.S supplies as the Black Sea region runs of surpluses next year. Soybean futures were largely unchanged yesterday, as the market took a breather after strong gains in the last two sessions, ahead of trade talks between Washington and Beijing at the G20 meeting this week.
|Futures Settlement Price Thursday, November 29, 2018|
|S & P 500||SPM18||2738.5||2754.5||2723.25||2743.75||1.75|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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