Daily Market View
Monday, September 24, 2018
| U.S Stock Market
The S&P 500 and Dow reached record highs on Friday ahead of today’s major sector reshuffle, capping a week that largely shrugged off trade worries. Trading volume was expected to spike in anticipation of the S&P 500 sector change, when telecom will be folded into a new sector called communications services, along with heavy-hitting stocks such as Amazon.com, Facebook Inc. and Walt Disney Co. The S&P 500 and the Dow were up, with the tech-heavy NASDAQ losing ground. All three were on track to post their second consecutive weekly gains, with the blue-chip Dow on its way to its best weekly percentage gain in over two months. There could be a late spike in volume because of all these index changes occurring. Boeing Co, United States’ biggest exporter to China, led trade-sensitive industrials higher. The sector headed up gains by the S&P 500 and the Dow. The Dow Jones Industrial Average rose 78.46 points, or 0.29 percent, the S&P 500 gained 3.04 points, or 0.10 percent and the NASDAQ dropped 18.66 points, or 0.23 percent.
|Major Economic Releases for Today|
|German IFO Business Climate||08:00||103.8|
|German IFO Expectations||08:00||101.2|
|German IFO Current Assessment||08:00||106.4|
|Switzerland Domestic Sight Deposits CHF||08:00|
|U.K CBI Trends Total Orders||10:00||7|
|Canada Wholesale Trade Sales (MoM)||12:30||-0.8%|
|U.S Chicago Fed Nat Activity Index||12:30||0.13|
|U.S Dallas Fed Manufacturing Activity||14:30||31||30.9|
|BOJ Minutes of Policy Meeting||23:50|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.32% to hit a new all-time high. The best performers of the session on the Dow Jones Industrial Average were McDonald’s Corporation, which rose 2.80% or 4.51 points to trade at 165.30 at the close. Meanwhile, Cisco Systems Inc. added 1.74% or 0.83 points to end at 48.56 and Chevron Corp was up 1.43% or 1.71 points to 121.13 in late trade. The worst performers of the session were Intel Corporation, which fell 1.14% or 0.54 points to trade at 46.66 at the close. Walt Disney Company declined 1.09% or 1.22 points to end at 110.40 and Apple Inc. was down 1.08% or 2.37 points to 217.66.
The tech-heavy NASDAQ index declined 0.51%. The top performers on the NASDAQ Composite were Cool Holdings Inc. which rose 80.95% to 19.000, Astrotech Corp which was up 71.47% to settle at 5.590 and Netlist Inc. which gained 49.12% to close at 0.650. The worst performers were GTX Inc. which was down 92.27% to 1.8000 in late trade, Titan Pharmaceuticals Inc. which lost 56.67% to settle at 0.2167 and Bio Path Holdings Inc. which was down 36.46% to 0.610 at the close.
A steady rise in U.S oil output will gather pace in the next five years, OPEC said on Sunday, predicting that demand for the producer group’s crude will decline despite a growing appetite for energy fed by global economic expansion. “Declining demand for OPEC crude is a result of strong non-OPEC supply in the 2017–2023 period, most notably from U.S. tight oil,” the Organization of the Petroleum Exporting Countries said in its long-term world oil outlook. The United States has pushed oil output to record levels in recent years on the back of a shale revolution that allowed new technology to unlock reserves previously seen as uneconomic. U.S sanctions on OPEC members Venezuela and Iran have helped pushed oil prices to their highest since 2014 at around $80 a barrel, also spurring U.S producers to ramp up output. However, high gasoline prices for U.S consumers could create a political headache for President Donald Trump, who on Thursday called again on OPEC to boost supply.
|Precious and Base Metals
Gold prices fell more than 1 percent on Friday as the dollar firmed against the British sterling and the euro after British Prime Minister Theresa May said the European Union must supply an alternative Brexit proposal. China’s moves to boost domestic consumption also helped bolster the dollar rally driven by investor bets that the latest U.S.-China trade salvoes were unlikely to dent global growth. The dollar’s status as the chief reserve currency makes it the prime beneficiary of U.S.-China trade conflict, with the United States seen as having less to lose. A big selloff in the pound and euro sent the dollar sharply higher. And gold, being dollar-denominated, fell as a result of that. A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies. Spot gold lost 0.8 percent at $1,196.86 per ounce. During the session it touched its lowest since Sept 11 at $1,191.51. However, gold headed for a 0.4 percent weekly increase. U.S gold futures for December delivery settled down $10, or 0.8 percent, at $1,201.30 per ounce. The euro and the pound fell after British Prime Minister Theresa May said the European Union must come up with an alternative to her Brexit proposals, saying talks had reached an impasse after the bloc’s leaders rejected her plans without explaining why. Investors await next week’s Federal Reserve meeting, where the U.S central bank is widely expected to raise benchmark interest rates. Higher U.S. interest rates tend to make gold less attractive since it does not pay interest and costs money to store and insure. In other precious metals, spot silver rose 0.1 percent at $14.29 an ounce, after rising to two-week highs of $14.43. The factors driving silver are much more industrial-related. Silver closed the week up about 2 percent. Platinum fell 0.4 percent at $828.70 after hitting its highest since Aug. 9 at $838.40.
Corn futures climbed more than one per cent on Friday to their highest in more than a week, buoyed by end-user demand and fund short-covering. Wheat and soybean futures declined but still recorded weekly advances. Corn rose for a third straight session with analysts citing a mix of technical and fundamental factors.
|Futures Settlement Price Friday, September 21, 2018|
|S & P 500||SPM18||2939.5||2946.75||2932.5||2934||-5.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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