Daily Market View
Tuesday, October 23, 2018
| U.S Stock Market
U.S stocks fell yesterday, with the S&P 500 poised for its fourth day of losses, as a touch of earnings-season anxiety dogged investors. The Dow Jones Industrial Average dropped 130 points, or 0.5%, while S&P 500 shed 11 points, or 0.4%. The tech heavy NASDAQ however, rose 20 points, or 0.3%. Stocks are trying to find direction after bulls and bears fought each other to a stalemate last week, leaving the benchmark S&P 500 to eke out a weekly rise of less than 0.1%. The tech-heavy NASDAQ suffered a third straight weekly decline as once-popular technology shares continued to take a beating, while the Dow broke a three-week losing streak. Increased volatility has left investors nervous in what’s been a rough October. The S&P 500 is down more than 5% in the month-to-date, while the Dow is off nearly 4% and the NASDAQ has shed 7%. That is left the S&P 500 roughly 6% off its record high set in late September. Investors will be wading through a flood of earnings this week.
|Major Economic Releases for Today|
||RBA’s Bullock speaks on panel in Sydney||03:00|
|Japan Nationwide Department Store Sales (YoY)||05:30||-0.2%|
|Japan Machine Tool Orders (YoY)||06:00||2.8%|
|German Producer Price Index (YoY)||06:00||3.0%||3.1%|
|U.K CBI Business Optimism||10:00||-4||-3|
|U.S Richmond Fed Manufact. Index||14:00||24||29|
|Euro-Zone Consumer Confidence||14:00||-3.2||-2.9|
||BOE’s Carney Speaks at a Conference||15:20|
|Nikkei Japan PMI Manufacturing||23:30||52.5|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.50%. The best performers of the session on the Dow Jones Industrial Average were Intel Corporation, which rose 2.30% or 1.01 points to trade at 45.01 at the close. Meanwhile, Nike Inc. added 0.93% or 0.69 points to end at 74.90 and Cisco Systems Inc. was up 0.93% or 0.42 points to 45.76 in late trade. The worst performers of the session were DowDuPont Inc., which fell 2.47% or 1.42 points to trade at 56.07 at the close. Goldman Sachs Group Inc. declined 2.36% or 5.36 points to end at 221.60 and American Express Company was down 2.08% or 2.22 points to 104.51.
The NASDAQ index gained 0.26%. The top performers on the NASDAQ were Jetpay Corp which rose 133.96% to 4.960, Euroseas Ltd which was up 81.82% to settle at 2.400 and Top Ships Inc. which gained 55.12% to close at 1.9700. The worst performers were Adaptimmune Therapeutics Plc which was down 29.83% to 7.55 in late trade, Aduro Biotech Inc. which lost 29.46% to settle at 4.43 and LM Funding America Inc. which was down 26.57% to 2.93 at the close.
Oil futures were little changed yesterday after paring earlier losses despite Saudi Arabia’s pledge to raise crude production to a record high, two weeks before U.S sanctions potentially choke off Iranian supplies. Saudi Energy Minister Khalid al-Falih told Russia’s TASS news agency that his country had no intention of unleashing a 1973-style oil embargo on Western consumers, but rather was focused on raising output to compensate for supply losses elsewhere, such as Iran. Falih said Saudi Arabia would soon raise output to 11 million barrels per day (bpd) from the current 10.7 million. He added that Riyadh had capacity to increase production to 12 million bpd. Oil prices are finely balanced in today’s trading session despite the Saudi pledge to boost production. West Texas Intermediate (WTI) for November delivery also rose 5 cents to settle at $69.17 on its last day as the U.S front-month. In intraday trade, WTI fell as low as $68.27, its lowest since Sept. 14. U.S sanctions on Iran’s oil sector start on Nov. 4
|Precious and Base Metals
Gold prices slipped yesterday, pressured by a rallying dollar and the metal’s failure to break above a key technical level. Spot gold fell 0.3 percent to $1,222.13 per ounce, having hit a 2-1/2-month peak last week at $1,233.26 per ounce. Prices were on track to register their biggest daily percentage decline since Oct. 12. U.S. gold futures fell 0.3 percent to $1,224.80. The strength of the dollar and the gold market’s inability to trade above the 100 day moving average at $1,224 yesterday has given people the impression that gold has no chance of rallying. The dollar rose against a basket of major currencies, denting demand for gold, which is priced in the U.S currency, while Wall Street failed to capitalize on gains in European and Asian stock markets. Despite the market gathering a fair amount of technical momentum last week, breaking free of stock market fluctuations, some analysts said the outlook was not straightforward. The fundamental outlook for gold is still looking a little bleak despite the recent recovery. Gold speculators cut their net short position in COMEX gold contracts by 65,637 contracts to 37,372 contracts, the smallest since late July, in the week to Oct. 16, data showed. In other precious metals, palladium surged 3.7 percent to $1,120 per ounce, having hit its highest in more than nine months at $1,123.20. The auto catalyst metal has seen fresh buying on the back of a recovery in Chinese equity markets. Promises of tax cuts and coordinated official statements of support for stock markets in the world’s second-largest economy saw Chinese shares stage their biggest one-day surge in three years. Meanwhile, silver was 0.4 percent lower at $14.54, while platinum slid 0.8%. Copper prices hit one-week highs yesterday due to expectations of stronger demand after authorities in top consumer China said they would take measures aimed at bolstering growth and liquidity.
Corn futures inched higher yesterday, snapping a four-session slide, as forecasts for rains to re-emerge in the Midwest next week raised concerns about harvest delays and crop quality. Soybeans ended narrowly higher while wheat futures sagged in subdued trade, pressured by a firm dollar and weak export demand for U.S supplies.
|Futures Settlement Price Friday, October 22, 2018|
|S & P 500||SPM18||2757.75||2781.75||2749.5||2756||-11.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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