Daily Market View
Wednesday, October 17, 2018
| U.S Stock Market
Wall Street stocks jumped yesterday following a batch of mostly good earnings that helped investors look past recent stock market weakness. About 20 minutes into trading, the Dow Jones Industrial Average was up 0.7 percent. The broad-based S&P also gained 0.7 percent, while the tech-rich NASDAQ jumped 1.0 percent. Shares of leading companies rose following earnings reports and positive commentary about economic conditions. United Health rose 3.1 percent, Morgan Stanley 2.8 percent, Johnson & Johnson 2.5 percent and Goldman Sachs 0.9 percent. The gains helped the market shift focus after worries about high interest rates and trade war fallout prompted a bruising two-day rout last week that hung over stocks on Monday, when equities again fell. Lingering concerns “aren’t going to vanish overnight, yet encouraging earnings guidance can go a long way toward dulling the stock market’s bearish senses for the time being and instilling some upside momentum again in growth stocks.
|Major Economic Releases for Today|
|U.K Consumer Price Index (YoY)||08:30||2.6%||2.7%|
|U.K Core Consumer Price Index (YoY)||08:30||2.0%||2.1%|
|U.K House Price Index (YoY)||08:30||2.8%||3.1%|
|BOE’s FPC Minutes||08:30|
|Euro-Zone Consumer Price Index (YoY)||09:00||2.1%||2.0%|
|U.S Housing Starts (MoM)||12:30||-5.6%||9.2%|
|U.S Building Permits (MoM)||12:30||2.1%||-5.7%|
|DOE U.S. Crude Oil Inventories||14:30||5987k|
|U.S FOMC Meeting Minutes||18:00|
|Dow Jones Industrial Average
The Dow Jones Industrial Average gained 2.17%. The biggest gainers of the session on the Dow Jones were UnitedHealth Group Incorporated, which rose 4.73% or 12.32 points to trade at 272.57 at the close. Nike Inc. added 3.32% or 2.49 points to end at 77.48 and Visa Inc. was up 3.29% or 4.51 points to 141.74 in late trade. Biggest losers included Verizon Communications Inc., which added 0.19% or 0.10 points to trade at 53.70 in late trade. McDonald’s Corporation added 0.24% or 0.40 points to end at 164.07 and Exxon Mobil Corp gained 0.47% or 0.38 points to 81.20.
The NASDAQ index added 2.89%. The top performers on the NASDAQ Composite were Blink Charging Co which rose 62.56% to 3.5600, Sears Holdings Corporation which was up 29.03% to settle at 0.40 and Trevena Inc. which gained 26.18% to close at 1.07. The worst performers were Hudson Technologies Inc. which was down 31.55% to 0.842 in late trade, Flex Pharma Inc. which lost 27.37% to settle at 0.69 and Liquid Media Group Ltd which was down 24.47% to 3.210 at the close.
Oil prices were higher yesterday as concerns about tightening global supplies ahead of U.S. sanctions on Iran faced higher U.S shale production and inventories. The disappearance of a Saudi Arabian journalist Jamal Khashoggi in Turkey has also strained U.S.-Saudi ties and provoked international outcry and fears that supplies from the world’s top crude exporter may be affected. The focus within the oil trade during the next couple of weeks is likely to be on Iran and Saudi Arabia. In the absence of upward pull from the products or the Brent market, WTI will have difficulty advancing and additional weakening in the WTI curve would appear likely given recent stock builds at Cushing. Reports that Iranian exports of crude oil may be falling faster than expected ahead of new U.S. sanctions on Tehran from Nov. 4 lent support. The U.S. Department of Energy will release official data later in today’s session. OPEC Secretary-General Mohammad Barkindo said oil markets were currently adequately supplied and balanced.
|Precious and Base Metals
Gold rose yesterday as investors unwound some bearish positions after prices jumped to a 2-1/2-month high in the previous session, driven by a global equities sell-off. Spot gold was up 0.4 percent at $1,231.20 per ounce, having peaked on Monday at $1,233.26, its highest since July 26. U.S. gold futures were up 0.4 percent at $1,234.60. Gold is still holding the gains, very close to the 100-day moving average. A close above that level could be a positive sign and provoke more short-covering and push prices higher. Speculators who trade on technical signals regard a break above the 100-day moving average as a bullish sign. Prices were trading above the 100-day moving average of $1,227. Data last week showed that speculators had increased their short positions and traders said the recent rally forced many to abandon those bets on lower prices. Tensions between Saudi Arabia and Western nations, plus potential divisions in Europe over Italy’s budget, were also helping gold. Global equities edged higher after sharp declines over the past couple of days, but gains were capped as markets remained nervous because of factors including the U.S.-China trade tussle, tensions between Saudi Arabia and western powers, stalled Brexit negotiations and concerns over China’s economy. Gold, usually viewed as a safe store of value during political and economic uncertainty, has fallen nearly 10 percent from its April peak as investors largely turned to the dollar as the U.S.-China trade war unfolded against a background of higher U.S interest rates. The recent volatility in world stock markets and some heightened geopolitical tensions are continuing to provide some demand for safe-haven gold. Holdings of SPDR Gold Trust, the largest gold-backed exchange traded fund, rose for a second straight session on Monday, rising 4.1 tonnes. Holdings have gained about 2.5 percent in the past seven days. In other metals, Silver rose 0.8 percent to $14.77 an ounce, earlier in the session it touched its highest since Oct. 2 at 14.84.
Soybean prices slid yesterday, taking a breather after three sessions of gains to an eight-week high as rains in parts of the U.S Midwest slowed the pace of harvest and raised concerns over crop quality.
|Futures Settlement Price Tuesday, October 16, 2018|
|S & P 500||SPM18||2747.5||2818.75||2745.5||2818.5||69.75|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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