Daily Market View
Monday, June 25, 2018
| U.S Stock Market
U.S stocks rose on Friday with the Dow Jones Industrial Average looking to snap its 8-day losing streak, powered by a surge in oil prices, but losses in technology stocks curbed some gains. The benchmark Brent crude jumped $1.83 to $74.88 a barrel, following three days of losses, after OPEC agreed to modest crude output increases to compensate for losses in production at a time of rising global demand. A recent rally in oil prices due to an OPEC decision to restrict supply in an effort to drain global inventories has helped S&P energy be the best performing S&P sector in the last three months. U.S President Donald Trump, in his latest move, threatened to impose a 20 percent tariff on all European Union car imports, a month after the administration launched a probe into whether auto imports pose a threat to national security. The gains were broad-based with 10 of the 11 main S&P sectors higher. The technology sector was the only one in the red, down 0.3 percent. Leading the decliners among tech was open source software provider Red Hat Inc, which slumped 11.9 percent.
|Major Economic Releases for Today|
|Japan Leading Index CI||05:00||105.6|
|Japan Coincident Index||05:00||117.7|
|German IFO Business Climate||08:00||102.2|
|German IFO Expectations||08:00||98.5|
|German IFO Current Assessment||08:00||106|
|U.S Chicago Fed Nat Activity Index||12:30||0.34|
|U.S New Home Sales (MoM)||14:00||0.5%||-1.5%|
|U.S Dallas Fed Manufacturing Activity||14:30||26.8|
|Japan Corporate Service Price (YoY)||23:50||0.9%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.49% on Friday. The biggest gainers of the session on the Dow Jones Industrial Average were Dow DuPont Inc., which rose 2.63% or 1.72 points to trade at 67.00 at the close. McDonald’s Corporation added 2.50% or 4.02 points to end at 164.55 and Verizon Communications Inc. was up 2.32% or 1.13 points to 49.76 in late trade. Biggest losers included JPMorgan Chase & Co, which lost 1.64% or 1.76 points to trade at 105.75 in late trade. Home Depot Inc. declined 1.45% or 2.90 points to end at 197.41 and Microsoft Corporation shed 0.72% or 0.73 points to 100.41.
The tech-heavy NASDAQ index fell 0.26% on Friday. The top performers on the NASDAQ Composite were Apollo Medical Holdings Inc. which rose 50.60% to 30.00, Restoration Robotics Inc. which was up 33.33% to settle at 3.64 and Soleno Therapeutics Inc. which gained 33.05% to close at 3.100. The worst performers were Inpixon which was down 33.07% to 0.1941 in late trade, Research Frontiers Incorporated which lost 27.44% to settle at 0.595 and Xenetic Biosciences Inc. which was down 21.67% to 2.820 at the close.
Oil prices soared on Friday after oil producers agreed to modest crude output increases to compensate for losses in production at a time of rising global demand. The OPEC and other top crude producers, meeting in Vienna, agreed to raise output from July by about 1 million barrels per day (bpd). The real increase, however, will be around 770,000 bpd, according to Iraq, because several countries that recently suffered production declines will struggle to reach full quotas, while other producers may not be able to fill the gap. The actual output increases set a bullish tone, as they came in below some of the highest figures that had been discussed prior to the meeting. U.S. crude rose $3.04, or 4.6 percent, to $68.58 a barrel, getting an additional boost after a surprisingly large drawdown at the storage hub at Cushing, Oklahoma. For about three weeks ahead of the OPEC meeting, prices had retreated from 3-1/2-year highs.
|Precious and Base Metals
Gold prices rose from six-month lows on Friday as the dollar slipped, but the modest nature of the recovery suggested speculators might still be poised to punish the metal further. Spot gold gained 0.2 percent at $1,268.76 per ounce, headed for a 0.8 percent weekly drop. In the prior session, bullion touched $1,260.84, its lowest since Dec. 19, 2017. U.S gold futures for August delivery settled up 20 cents, 0.02 percent, at $1,270.70 per ounce. Gold is up with the dollar being a little weak. A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies. Subdued gold reaction shows there’s more downside risk. People think since gold failed at the $1,300 level, they are seeing how far they can push it down and then move it up again. I would say it should bottom out anywhere between $1,250 and $1,200. Gold tumbled last Friday after repeatedly failing to surmount the $1,300 level as speculators rushed to liquidate long positions and others added bearish positions. The dollar dropped from an 11-month peak against a currency basket as the euro strengthened after a survey showed Euro zone private business growth recovered in June. Commerzbank agreed gold was unlikely to recover in the near-term. If gold is not even in demand as a result of the escalating trade dispute between the U.S. and China, we do not believe that the other upcoming events will do much to sway the opinion of market participants. In Asia, gold demand picked up in most centers this week, with bullion selling at a premium in India for the first time in seven weeks. Platinum increased 1 percent at $870.24 per ounce, poised for a weekly drop of over 1 percent. Silver was up 0.8 percent at $16.44 an ounce after falling to its lowest since May 2 at $16.16 in the previous session, headed for a 0.3 percent weekly drop.
Wheat, Corn , and Soybeans
Soybean and corn futures posted losses for the fourth straight week on worries about the escalating trade dispute between the U.S and China, although prices rose for the day on Friday as some traders covered short positions. Soybeans ended 1.2 per cent lower on the week, after plunging to their lowest price in nearly a decade on Tuesday.
|Futures Settlement Price Friday, June 22, 2018|
|S & P 500||SPM18||2750.25||2768.25||2749||2760||8|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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