Daily Market View
Friday, October 19, 2018
| U.S Stock Market
U.S stocks slumped again yesterday as investors continued to sell shares of technology and internet companies, industrials, and companies that rely on consumer spending. Several industrial companies tumbled after releasing weak quarterly reports, and European stocks also fell as European Union leaders criticized Italy’s spending plans. At the start of trading, stocks took small losses as bond prices fell and interest rates spiked. While the gain in interest rates didn’t last, stocks turned lower late in the morning, and by the end of the day they had wiped away most of their big rally from Tuesday. Stocks have skidded over the last two weeks, and there are signs investors are worried about future economic growth. The S&P 500 has fallen 5.5 percent in volatile trading since Oct. 3, and technology, industrial and energy companies have taken some of the biggest losses. Those companies tend to do better when the economy is growing more quickly and consumers and businesses have more money to spend.
|Major Economic Releases for Today|
|China Gross Domestic Product (YoY)||02:00||6.6%||6.7%|
|China Retail Sales (YoY)||02:00||9.0%||9.0%|
||BOJ Kuroda speaks in Tokyo||06:35|
|U.K Public Sector Net Borrowing||08:30||4.6b||5.9b|
|U.K PSNB ex Banking Groups||08:30||4.5b||6.8b|
|Canada Retail Sales (MoM)||12:30||0.4%||0.3%|
|Canada Consumer Price Index (YoY)||12:30||2.7%||2.8%|
|U.S Existing Home Sales (MoM)||14:00||-0.9%||0.0%|
||BOE Governor Carney Speaks in New York||15:30|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 1.27% yesterday. The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc., which rose 1.28% or 0.69 points to trade at 54.65 at the close. Meanwhile, Merck & Company Inc. added 0.54% or 0.39 points to end at 72.21 and Exxon Mobil Corp was up 0.43% or 0.35 points to 81.85 in late trade. The worst performers of the session were Caterpillar Inc., which fell 3.92% or 5.54 points to trade at 135.80 at the close. International Business Machines declined 2.61% or 3.50 points to end at 130.55 and Home Depot Inc. was down 2.55% or 4.73 points to 180.44.
The tech heavy NASDAQ index fell 2.06% yesterday. The top performers on the NASDAQ Composite were Proteostasis Therapeutics Inc. which rose 447.62% to 10.35, China Ceramics Co Ltd which was up 105.03% to settle at 3.6700 and Endocyte Inc. which gained 50.29% to close at 23.385. The worst performers were Auris Medical Holding AG which was down 27.35% to 0.850 in late trade, LM Funding America Inc. which lost 23.75% to settle at 3.21 and CDTi Advanced Materials Inc. which was down 23.26% to 1.7114 at the close.
Oil prices nudged higher today on signs of surging demand in China, the world’s second-biggest oil user, though prices are set to fall for a second week amid concerns of the ongoing Sino-U.S. trade war is limiting overall economic activity. U.S West Texas Intermediate (WTI) crude futures were up 19 cents, or 0.3 percent, at $68.84 a barrel. For the week, Brent crude was 1.1 percent lower while WTI futures were down 3.5 percent, putting both on track for a second consecutive weekly decline. Refinery throughput in China, the world’s second-largest oil importer, rose to a record high of 12.49 million barrels per day (bpd) in September as some independent plants restarted operations after prolonged shutdowns over summer to shore up inventories, government data showed on Friday. The refinery consumption may rise through the fourth quarter as several state-owned Chinese refiners return to service after maintenance.
|Precious and Base Metals
Gold prices nudged higher early today as Asian shares fell on renewed political and economic concerns, with the metal on track for its third straight weekly rise. Spot gold was up 0.2 percent at $1,227.31 an ounce. It was up about 0.7 percent for the week. U.S gold futures were little changed at $1,230.60 an ounce. Stocks in Asia fell as global sentiment soured on issues ranging from trade worries, Italy’s 2019 budget, higher U.S interest rates and growth concerns in China that led to a slump in Chinese shares in the previous session. China’s third-quarter GDP data due on Friday is expected to show growth slipped to its weakest pace since the global financial crisis, as domestic demand faltered and exporters started to feel the pinch from a bitter Sino-U.S trade dispute. U.S trade policy towards China over the next few years will become more confrontational, according to a majority of economists in a Reuters poll who remain convinced U.S. growth has peaked and will slow substantially next year. Italy’s Prime Minister defended its free-spending budget on Thursday, brushing off criticism from Brussels as the European Commission stepped up pressure over a draft it labelled an unprecedented breach of EU fiscal rules. The United States is requesting that a World Trade Organization dispute resolution panel get involved in a clash over international retaliation over U.S tariffs on steel and aluminum, according to a U.S. official familiar with the matter. U.S President Donald Trump said on Thursday he presumes missing Saudi journalist Jamal Khashoggi is dead and that the U.S response to Saudi Arabia will likely be “very severe” but that he still wanted to get to the bottom of what exactly happened. The Federal Reserve’s current monetary policy path would raise the risks of recession in an economy where recent, unexpectedly strong growth may start to taper anyway, St. Louis Fed President James Bullard said yesterday.
Soybean futures fell more than two per cent in yesterday’s session, with the benchmark November contract recording its largest single-day decline since August, on disappointing weekly export sales and improving U.S harvest weather. Corn and wheat followed the weak tone.
|Futures Settlement Price Thursday, October 18, 2018|
|S & P 500||SPM18||2813.25||2814.5||2756.5||2772.75||-43.75|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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