Daily Market View
Thursday, July 19, 2018
| U.S Stock Market
U.S stocks mostly held ground in positive territory after an anecdotal account of business conditions in the Fed’s districts painted a picture of a tightening labor market and one attentive to escalating trade spats between the U.S and its global trade partners. The S&P 500 index saw a tentative gain of 4 points, or 0.1%, with only three of its 11 main sectors trading higher. Financials and industrials were leading gains, both by at least 1%, while consumer-staples names led losses, down 0.7%, at last check. The NASDAQ meanwhile, traded near break-even levels, a day after notching its third all-time high of the month. The Dow advanced by 65 points, or 0.3%. If the blue-chip benchmark closes up a fifth day in a row in the green, it would mark its longest winning period since the eight-day period ended May 14. The Fed’s Beige Book revealed a domestic strong economy that was rapidly expanding but one running out of room to grow much faster as shortages of skilled workers and rising costs of raw materials risked impeding another leg further for the economy.
|Major Economic Releases for Today|
|Australia NAB Business Confidence||01:30||7|
|Australia Employment Change||01:30||16.5k||12.0k|
|Australia Unemployment Rate||01:30||5.4%||5.4%|
|U.K Retail Sales Ex Auto Fuel (YoY)||08:30||3.7%||4.4%|
|U.S Initial Jobless Claims||12:30||221k||214k|
|U.S Continuing Claims||12:30||1725k||1739k|
|U.S Philadelphia Fed Business Outlook||12:30||21.5||19.9|
|U.S Leading Index||14:00||0.5%||0.2%|
|Japan National Consumer Price Index (YoY)||23:30||0.8%||0.7%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.32% to hit a new 1-month high yesterday. The best performers of the session on the Dow Jones Industrial Average were UnitedHealth Group Incorporated, which rose 2.05% or 5.13 points to trade at 255.42 at the close. Meanwhile, American Express Company added 1.81% or 1.83 points to end at 102.98 and Caterpillar Inc. was up 1.56% or 2.17 points to 141.12 in late trade. The worst performers of the session were McDonald’s Corporation, which fell 1.14% or 1.82 points to trade at 157.93 at the close. Nike Inc. declined 1.14% or 0.88 points to end at 76.59 and Johnson & Johnson was down 1.01% or 1.31 points to 127.80.
The tech heavy NASDAQ index lost 0.01%. The top performers on the NASDAQ Composite were Precipio Inc. which rose 30.90% to 0.4778, Staffing 360 Solutions Inc. which was up 29.24% to settle at 3.050 and Vermillion Inc. which gained 22.39% to close at 0.710. The worst performers were CTi Biopharma Corp which was down 43.36% to 2.260 in late trade, China Customer Relations Centers Inc. which lost 22.07% to settle at 8.79 and Medigus Ltd ADR which was down 16.33% to 3.690 at the close.
Oil prices ended higher yesterday, finding support from a bigger-than-expected decline in gasoline stocks, despite a surprise climb in domestic crude supplies and record weekly production. On the New York Mercantile Exchange, August West Texas Intermediate crude rose 1%, or 68 cents, to settle at $68.76 a barrel after an intraday low of $67.04. The Energy Information Administration reported Wednesday that domestic crude supplies climbed 5.8 million barrels for the week ended July 13. Analysts surveyed by S&P Global Platts had forecast a fall of 3 million barrels, while the American Petroleum Institute on Tuesday reported a rise of 629,000 barrels. The report also showed that domestic production climbed by 100,000 barrels a day to 11 million barrels a day. That’s the highest weekly level on record, based on EIA data dating back to at least 1985. Gasoline stockpiles declined by 3.2 million barrels for the week.
|Precious and Base Metals
Gold prices steadied yesterday as the U.S dollar eased off a three-week high, following an earlier drop in bullion to a one-year low as bullish comments from U.S Federal Reserve Chair Jerome Powell boosted the greenback. The dollar came off a little bit later in trade, causing gold to go into positive territory, but I think it’s temporary. Gold has shed more than 10 percent since touching a peak of $1,365.23 an ounce in mid-April, weighed down by a stronger dollar and rising U.S interest rates. Spot gold was flat at $1,227.26 per ounce, after touching its weakest since July 14, 2017 at $1,220.81. U.S gold futures for August delivery settled up 60 cents, or 0.1 percent, at $1,227.90 per ounce. In this environment where we also see oil prices falling, and so less concern from investors about rising inflation, that’s another negative for the gold price. Gold is regarded as a hedge against inflation. The U.S. dollar slightly eased off a three-week high. It earlier rose across the board, after Powell gave an upbeat outlook for the U.S economy. Higher interest rates tend to boost the dollar and push up bond yields, making greenback-denominated gold more expensive for holders of other currencies and denting its appeal. Russia, which dropped off the list of U.S. Treasuries holders in May, may have increased gold purchases as a result of recent sanctions imposed by the United States on Russia, but that has yet to help bullion prices. Not so much of that is going to turn the market around. Longer-term, some analysts expect dollar strength to wane and possible geopolitical concerns and the heavy weight of gold bearish positions to help bullion recover. With the U.S dollar expected to eventually roll over and upside pressure to U.S bond yields easing, medium- to longer-term buying opportunities for gold should open up. Meanwhile, silver dipped 0.1 percent at $15.56 an ounce, after touching $15.38, its lowest since July 10 of last year. Platinum lost 0.2 percent at $814.20 an ounce, after earlier hitting a two-week low of $798.14.
Soybean futures touched their highest prices in about a week in yesterday’s trading session, as agricultural markets stabilized following recent drops to contract lows.
|Futures Settlement Price Tuesday, July 18, 2018|
|S & P 500||SPM18||2812.75||2818||2806.75||2815.75||4.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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