Daily Market View
Tuesday, November 27, 2018
| U.S Stock Market
U.S stocks rallied yesterday as oil prices and global equities gained ground on a day that is arguably one of the most important for retailers as shoppers go hunting for deals on Cyber Monday. The Dow Jones Industrial Average climbed 278 points, or 1.2%, while the S&P 500 index rose 30 points, or 1.1%. The NASDAQ rallied 96 points, or 1.4%. Last week, the NASDAQ tumbled 4.3%, the Dow ended the week 4.4% lower, while the S&P 500 notched a week-on-week decline of 3.8%, marking the worst Thanksgiving week since 2011 for all three U.S indexes. Losses for oil prices pushed stocks lower last week, and the reverse was true for yesterday. After losing 7.7% in Friday’s session alone, U.S crude futures rose more than 2% to trade above $51 a barrel, while Brent crude jumped nearly 3% to above $60. The retail industry was in focus as investors digested initial data on consumers’ willingness to spend this holiday season after shoppers began deal-hunting in earnest ahead of the holidays.
|Major Economic Releases for Today|
|German Retail Sales (YoY)||-2.6%|
|U.K CBI Reported Sales||11:00||10||5|
||U.S Fed Vice Chairman Clarida Speaks in New York||13:30|
|U.S House Price Index (MoM)||14:00||0.4%||0.3%|
|U.S House Price Purchase Index (QoQ)||14:00||1.1%|
|S&P/Case-Shiller US Home Price Index (YoY)||14:00||5.77%|
|U.S Consumer Confidence Index||15:00||136.0||137.9|
|U.S Conf. Board Present Situation||15:00||172.8|
|U.S Conf. Board Expectations||15:00||114.6|
|Dow Jones Industrial Average
The Dow Jones Industrial Average gained 1.46%. The best performers of the session on the Dow Jones Industrial Average were American Express Company, which rose 3.73% or 3.94 points to trade at 109.68 at the close. Meanwhile, Microsoft Corporation added 3.30% or 3.40 points to end at 106.47 and The Travelers Companies Inc. was up 2.95% or 3.74 points to 130.34 in late trade. The worst performers of the session were United Technologies Corporation, which fell 0.82% or 1.06 points to trade at 127.98 at the close. Coca-Cola Company declined 0.31% or 0.15 points to end at 48.87 and Johnson & Johnson was up 0.03% or 0.04 points to 141.37.
The NASDAQ index gained 2.06%. The top performers on the NASDAQ Composite were Tyme Technologies Inc. which rose 30.23% to 2.80, Safe-T Group Ltd ADR which was up 29.18% to settle at 5.8000 and Adial Pharmaceuticals Inc. which gained 24.81% to close at 1.66. The worst performers were Zafgen Inc. which was down 40.55% to 5.41 in late trade, Mercantil Bank Holding Corp which lost 22.58% to settle at 12.00 and Tenax Therapeutics Inc. which was down 19.69% to 2.610 at the close.
Oil rose yesterday, recovering some of the previous session’s sharp fall, although uncertainty over global economic growth limited the gains. U.S crude futures were up $1.25, or 2.5 percent, at $51.67 a barrel. The gains partly made up for Friday’s 7.7 percent drop. Prices on Friday hit their lowest since October 2017 amid intensifying fears of a supply glut. Supporting oil prices, U.S stock markets broadly rallied as Cyber Monday, the largest online shopping day of the year, began. Crude futures at times track with the equities market. Prices found some support as crude stockpiles at the U.S. hub of Cushing, Oklahoma, rose just 126 barrels from Tuesday to Friday, traders said, citing a report from market intelligence firm Genscape. However, demand concerns and record output from Saudi Arabia limited Monday’s rebound. Saudi crude oil production hit 11.1-11.3 million bpd in November, an all-time high.
|Precious and Base Metals
Gold firmed yesterday, supported by uncertainty over the future pace of U.S interest rate hikes and the outcome of the G20 summit later this week when global leaders will focus on trade tensions. Spot gold was mostly unchanged at $1,222.70 per ounce. U.S gold futures were steady at $1,222.20 per ounce. U.S President Donald Trump and his Chinese counterpart Xi Jinping are expected to discuss their trade dispute at the G20 summit in Argentina, which begins on Friday. If Trump and Xi can’t come to an agreement at the G20 meeting, I think there will be a pause in the U.S Federal Reserve’s rate increases next year, which in turn will help gold prices go higher. Uncertainties related to Brexit and Italy are also helping build a base for gold, which was helped by a slight retreat in the dollar earlier in the session, he added. The euro gained against the dollar on signs Italy may cut its budget deficit target to satisfy the European Union, while the sterling rose after the EU and Britain sealed a Brexit deal. Analysts remain cautious, however, as the Brexit deal faces stiff opposition in the British parliament. Gold’s direction in the near term would be determined by moves in the greenback, which could be pressured if the Fed takes a more cautious approach to future policy tightening amid concern of an economic slowdown next year, analysts said. The metal could be in for a sizeable drop should support at $1,220 break, in which case a return back down to the next support at $1,205 would become likely. With the 10-year U.S bond yields on the rise again, this may support the greenback and simultaneously prevent gold from going higher. Gold prices have lost about 10 percent from their April peak and are down 6 percent so far this year. Speculators increased their net short positions in Comex gold and silver contracts in the week to Nov. 13. Among other precious metals, silver was steady at $14.23 an ounce and platinum rose 0.3 percent to $840.99.
Soybean futures fell more than 2 percent and neared a four-week low yesterday on chart-based selling and worries about export prospects for U.S supplies amid a trade war with China. Corn futures followed soybeans lower. But wheat futures rose.
|Futures Settlement Price Monday, November 26, 2018|
|S & P 500||SPM18||2633||2676||2631.5||2668.75||40.25|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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