Daily Market View
Wednesday, July 11, 2018
| U.S Stock Market
U.S stocks shook off some midday doldrums and rose for the fourth day in a row Tuesday as strong results from Pepsi helped household goods companies. The market is at its highest level since early February. Shares of most kinds of large companies finished higher, with food and consumer products makers, energy companies and utilities making some of the biggest gains. Pepsi staged its biggest rally in almost nine years after a solid second-quarter report. The S&P 500 is the highest it’s been since Feb. 1 and has climbed seven times in the last eight days even though the U.S. and China are now in open conflict over trade. Wall Street has focused instead on last week’s strong jobs report for June as well as company earnings reports. The S&P 500 index added 9.67 points, or 0.3 per cent. The Dow Jones Industrial Average rose 143.07 points, or 0.6 per cent. The NASDAQ picked up 3 points. Major U.S. banks including JPMorgan Chase and Citigroup will announce their results Friday morning, and most of the companies in the S&P 500 will report their results in the weeks after that.
|Major Economic Releases for Today|
|Australia Westpac Consumer Confidence||00:30||0.3%|
|Japan Tertiary Industry Index (MoM)||04:30||-0.3%||1.0%|
||ECB President Draghi Speaks in Frankfurt||07:00|
|U.S MBA Mortgage Applications||11:00||-0.5%|
|U.S PPI Final Demand (YoY)||12:30||3.1%||3.1%|
|Bank of Canada Rate Decision||14:00||1.50%||1.25%|
|DOE U.S. Crude Oil Inventories||14:30||1245k|
||BOE Governor Mark Carney Speaks in Boston, Massachusetts||15:35|
|U.K RICS House Price Balance||23:01||-2.0%||-3.0%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average rose 0.58% yesterday. The best performers of the session on the Dow Jones Industrial Average were Procter & Gamble Company, which rose 2.52% or 1.96 points to trade at 79.82 at the close. Meanwhile, Dow DuPont Inc. added 1.59% or 1.06 points to end at 67.81 and General Electric Company was up 1.58% or 0.22 points to 14.17 in late trade. The worst performers of the session were JPMorgan Chase & Co, which fell 0.62% or 0.66 points to trade at 106.62 at the close. Goldman Sachs Group Inc. declined 0.50% or 1.14 points to end at 226.85 and Apple Inc. was down 0.12% or 0.23 points to 190.35.
The tech heavy NASDAQ index gained 0.04% yesterday. The top performers on the NASDAQ Composite were MER Telemanagement Solutions Ltd which rose 145.95% to 2.7300, Bridgeline Digital Inc. which was up 75.57% to settle at 2.3000 and US Gold Corp which gained 23.02% to close at 1.6300. The worst performers were Tantech Holdings Ltd which was down 43.56% to 1.49 in late trade, Staffing 360 Solutions Inc. which lost 34.73% to settle at 3.590 and MabVax Therapeutics Holdings Inc. which was down 21.23% to 1.150 at the close.
Oil rose in yesterday’s session, supported by larger-than-expected U.S stock draw and supply concerns in Norway and Libya, though gains were tempered by the United States’ indication that it would consider requests for waivers from Iranian oil sanctions. U.S. crude futures rose 26 cents to settle at $74.11, after hitting a high of $74.70. U.S. crude inventories fell last week by 6.8 million barrels, according to data from industry group the American Petroleum Institute. That decline was larger than expected, causing crude futures to gain in post-settlement trading. Analysts polled by Reuters forecast that crude stocks fell on average by 4.5 million barrels, ahead of government data today. Both crude benchmarks retreated from near four-year highs after U.S. Secretary of State Mike Pompeo said the United States would consider requests from some countries to be exempted from sanctions on Iranian oil.
|Precious and Base Metals
Gold prices gave up early gains to trade slightly lower yesterday as the U.S dollar recovered, while lingering U.S.-China trade worries and political uncertainty over Brexit limited losses. Spot gold was down 0.1 percent at $1,256.79 an ounce, after touching its highest since June 26 at $1,265.87 in the previous session. U.S. gold futures for August delivery were 0.2 percent lower at $1,257.40 an ounce. The main driver was the dollar. The dollar’s index against a basket of six major currencies was up 0.04 percent at 94.114 after dropping to its lowest since mid-June on Monday. Investors were also on the sidelines awaiting developments on the trade war between China and the United States. Last week, the world’s top two economies slapped tit-for-tat duties on $34 billion worth of each other’s imports. Geopolitical issues such as Britain’s confused exit from the European Union and U.S. President Trump’s assertion that China was impeding North Korean progress on denuclearization have provided some support for gold. Britain’s ramshackle exit from the European Union could damage economic growth in the eurozone, European Central Bank policymaker Ewald Nowotny said. Prime Minister Theresa May’s foreign minister and Brexit negotiator quit on Monday in protest at her plans to keep close trade ties with the European Union after Britain leaves the bloc. The departure of two key Eurosceptic ministers raised worries about a “hard Brexit”. Hedge funds and money managers raised their net long position in COMEX gold by 105 contracts to 4,291 contracts in the week to July 3, U.S. Commodity Futures Trading Commission (CFTC) data showed on Monday. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped 0.18 percent to 800.77 tonnes on Monday, its lowest since August 2017. In other precious metals, silver was up 0.1 percent to $16.08 an ounce.
Wheat, Corn, and Soybeans
Corn futures fell to contract lows on forecasts for crop-boosting rain and milder temperatures in the heart of the U.S Corn Belt, with three-quarters of the nation’s crop already in good-to-excellent shape. Wheat futures tumbled more than three per cent on dull export demand and improving spring wheat crop conditions.
|Futures Settlement Price Tuesday, July 10, 2018|
|S & P 500||SPM18||2787.5||2797.5||2786||2796.5||9|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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