28 Авг 2018

Daily Market View

   

Daily Market View

Tuesday, August 28, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
26074 2898.50 7567.75
+0.93% +0.70% +0.83%

Stocks jumped yesterday as the United States and Mexico closed a new trade deal, potentially removing a source of uncertainty that had been plaguing investors for months. The Dow Jones Industrial Average rose 260 points as Caterpillar outperformed. The NASDAQ climbed 1 percent to an all-time high, breaking above 8,000 points for the first time, as Facebook, Amazon, Netflix and Alphabet rose. The S&P 500 gained 0.8 percent to hit a record high with materials and financials as the best-performing sectors. The market has been buffeted with a lot of headwinds lately, and the biggest one is trade. President Donald Trump said the deal would be called The United States-Mexico Trade agreement, leaving behind the 24-year-old NAFTA name. Trump added that the deal with Mexico is also very special for farmers and manufacturers. U.S. Trade Representative Robert Lighthizer said the deal must be approved by Congress before being implemented. Shares of Caterpillar and Boeing rose 2.8 percent and 1.3 percent, respectively.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

        aug

U.K Nationwide House Px n.s.a. (YoY) 06:00 2.7% 2.5%

jul

U.S Advance Goods Trade Balance 12:30 -$69.0b -$68.3b

jul

U.S Wholesale Inventories (MoM) 12:30 0.2% 0.2%

jul

U.S Retail Inventories (MoM) 12:30   0.0%

jun

U.S S&P/Case-Shiller Composite-20 (YoY) 13:00 6.43% 6.51%

jun

S&P/Case-Shiller US Home Price Index (YoY) 13:00   6.38%

aug

U.S Richmond Fed Manufact. Index 14:00 17 20

aug

U.S Consumer Confidence Index 14:00 126.5 127.4

aug

U.S Conf. Board Present Situation 14:00   165.9
Dow Jones Industrial Average

The Dow Jones Industrial Average added 1.01% to hit a new 6-month high. The best performers of the session on the Dow Jones Industrial Average were Goldman Sachs Group Inc., which rose 3.19% or 7.49 points to trade at 242.60 at the close. Meanwhile, Caterpillar Inc. added 2.77% or 3.83 points to end at 142.04 and DowDuPont Inc. was up 2.31% or 1.60 points to 70.81 in late trade. The worst performers of the session were Pfizer Inc., which fell 1.93% or 0.82 points to trade at 41.58 at the close. Walmart Inc. declined 0.43% or 0.41 points to end at 94.54 and Johnson & Johnson was down 0.10% or 0.13 points to 134.92.

 

 

NASDAQ 100

The NASDAQ index climbed 0.91%. The top performers on the NASDAQ Composite were ATA Inc. which rose 179.17% to 2.010, Egalet Corp which was up 35.59% to settle at 0.40 and AGM Group Holdings Inc Class A which gained 27.64% to close at 24.01. The worst performers were Eidos Therapeutics Inc. which was down 31.09% to 13.94 in late trade, Fuling Global Inc. which lost 12.50% to settle at 2.450 and Alliance MMA Inc. which was down 13.33% to 0.36 at the close.

 

Oil

Oil prices edged up yesterday, supported by a strengthening equities market and news that the United States and Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA). U.S West Texas Intermediate (WTI) crude futures gained 15 cents, or 0.2 percent, to close at $68.87 a barrel. Last week, WTI posted a 4.3 percent weekly gain while Brent marked a 5.6 percent weekly increase. Prices pulled back aftermarket intelligence firm Genscape reported that inventories at the Cushing, Oklahoma, and delivery hub for WTI rose by about 764,800 barrels from Aug. 21 through Friday. The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact. Prices have been buoyed in recent weeks by the view that the oil market will tighten when U.S. sanctions targeting OPEC member Iran’s oil exports kick in November.

 

 

Precious and Base Metals

Gold gained above $1,200 per ounce yesterday as the Dollar weakened after the United States and Mexico struck an agreement that lowers trade tensions. Major currencies gained against the U.S. dollar, which has been a safe haven from months of trade tensions. Spot gold gained 0.3 percent at $1,208.92 per ounce, earlier peaking at $1,212.38, a two-week high. U.S gold futures for December delivery settled up $2.70, or 0.2 percent, at $1,216 per ounce. The dollar index slid against a basket of six major currencies. A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies, which could boost bullion demand and prices. The NAFTA agreement is helping the platinum group metals a little bit. The United States and Mexico agreed to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to the new terms on auto trade and other issues to remain part of the three-nation pact. An agreement could ease concerns about an escalation in global trade tensions. But prices remained capped as higher rates, even if they come at a gradual pace, raise the opportunity cost of holding gold, which can be costly to store and insure. Our reading is that we still expect two more hikes this year and that should be the important thing near term for gold, next year the Fed is still likely to continue hiking. Gains in the Chinese Yuan yesterday made gold cheaper for buyers in the world’s biggest gold consumer, providing some support for prices. If prices hold at $1,200 an ounce, there is a good chance of further gains, with a target of $1,230/$1,235. Below $1,200, the bearish trend could recover strength, with a first targeted support area at $1,180. Higher activity in gold options amid geopolitical tensions and a record-long bull market for U.S equities suggest that investors are betting gold prices have found a floor. Meanwhile, spot silver gained 0.4 percent at $14.86 per ounce. Earlier it hit $14.92, its highest since Aug. 15.

 

 

 

 

Traditional AgricultureSoybean and corn futures fell to six-week lows yesterday on expectations of large U.S crops and fears that hog disease in China might hurt demand for feed. Wheat futures also declined, sliding for a sixth session on lackluster demand for U.S supplies.

 

 

 

Futures Settlement Price Friday, August 27, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25808 26078 25804 26074 277
S & P 500 SPM18 2877.75 2899.25 2876.75 2898.5 21.25
NASDAQ 100 NDM18 7498.75 7568.25 7498.25 7567.75 71
Hang Seng HSH18 27928 28268 27894 28248 646
Nikkei 225 NKH18 22940 22980 22880 22900 115
FTSE 100 FTH18 N/A N/A N/A N/A N/A
Gold GCJ18 1211.3 1218.6 1209.1 1217.4 3.9
Silver SIK18 1477 1487.5 1470 1484.5 3.5
Copper HGK18 270.15 272.2 269.4 270.7 0.25
Crude Oil CLK18 68.59 68.93 68.31 68.88 0.1
Wheat WK18 512.75 513 498.5 499.25 -16.25
Soybeans SK18 837 839.75 824.25 834.25 -8.5
Corn CK18 347.75 348 342.75 346.75 -2.25

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 25619 25711 25893 25985 26167 26259 26441
SPM18 2861.25 2869.00 2883.75 2891.50 2906.25 2914.00 2928.75
NDM18 7451.25 7474.75 7521.25 7544.75 7591.25 7614.75 7661.25
HSH18 27631 27763 28005 28137 28379 28511 28753
NKH18 22760 22820 22860 22920 22960 23020 23060
FTH18 N/A N/A N/A N/A N/A N/A N/A
GCJ18 1201.97 1205.53 1211.47 1215.03 1220.97 1224.53 1230.47
SIK18 1456.33 1463.17 1473.83 1480.67 1491.33 1498.17 1508.83
HGK18 266.53 267.97 269.33 270.77 272.13 273.57 274.93
CLK18 67.86 68.09 68.48 68.71 69.10 69.33 69.72
WK18 479.67 489.08 494.17 503.58 508.67 518.08 523.17
SK18 810.25 817.25 825.75 832.75 841.25 848.25 856.75
CK18 338.42 340.58 343.67 345.83 348.92 351.08 354.17

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

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