Daily Market View
Thursday, November 29, 2018
| U.S Stock Market
U.S stock indexes rallied more than 1.5percent yesterday after Federal Reserve Chairman Jerome Powell said the policy rate was ‘just below’ neutral, easing worries of a faster pace of interest rate hikes next year. The Fed’s gradual interest-rate hikes are meant to balance risks as it tries to keep the economy on track, Powell said, but offered few clues on how much longer the U.S. central bank would raise interest rates in the face of a global slowdown and market volatility at home. Ten of the 11 major S&P sectors were higher. Markets also took heart from White House economic adviser Larry Kudlow’s comments on Tuesday that opened the possibility that the United States and China would reach a trade deal at the upcoming G20 Summit. The Dow Jones Industrial Average was up 477.47 points, or 1.93 percent, the S&P 500 was up 42.76 points, or 1.59 percent and the NASDAQ was up 142.77 points, or 2.02 percent. Advancing issues outnumbered decliners by a 3.45-to-1 ratioon the and by a 2.96-to-1 ratio on the NASDAQ.
|Major Economic Releases for Today|
|French Gross Domestic Product (YoY)||07:45||1.5%||1.5%|
|German Unemployment Change (000’s)||08:55||-10k||-11k|
|German Consumer Price Index (YoY)||13:00||2.4%||2.5%|
|U.S Personal Income||13:30||0.4%||0.2%|
|U.S Personal Spending||13:30||0.4%||0.4%|
|U.S PCE Core (YoY)||13:30||2.1%||2.0%|
|U.S Initial Jobless Claims||13:30||220k||224k|
|U.S Pending Home Sales (YoY)||15:00||-2.8%||-3.4%|
|U.S FOMC Meeting Minutes||19:00|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 2.50%. The best performers of the session on the Dow Jones Industrial Average were Caterpillar Inc., which rose 4.95% or 6.17 points to trade at 130.77 at the close. Meanwhile, Boeing Co added 4.86% or 15.47 points to end at 333.50 and Visa Inc. was up 4.02% or 5.47 points to 141.38 in late trade. The worst performers of the session were Verizon Communications Inc, which fell 0.97% or 0.59 points to trade at 60.06 at the close. United Technologies Corporation added 0.04% or 0.05 points to end at 122.73 and Dow DuPont Inc. was up 0.07% or 0.04 points to 57.22.
The NASDAQ index gained 2.95%. The top performers on the NASDAQ were Gaming Partners which rose 70.80% to 13.13, Alliqua BioMedical Inc. which was up 60.24% to settle at 2.660 and Ferroglobe PLC which gained 25.56% to close at 2.26. The top performers on the NASDAQ Composite were Gaming Partners which rose 70.80% to 13.13, Alliqua BioMedical Inc. which was up 60.24% to settle at 2.660 and Ferroglobe PLC which gained 25.56% to close at 2.26.
Oil prices fell yesterday, continuing a recent run of losses, after U.S crude inventories rose for the 10th week in a row. The market also remains nervous over whether OPEC-led producing countries will reach an accord next week on output cuts. Saudi Arabia said yesterday it would not cut output alone and Nigeria stopped short of committing to a new push to curb supplies. U.S West Texas Intermediate crude fell $1.27, or 2.5 percent, to $50.29, the lowest settle price since early October 2017. U.S crude stockpiles rose by 3.6 million barrels in the week to Nov. 23, exceeding expectations. After falling to 2½-year lows in September, crude stocks have risen 14 percent with 10 straight weeks of increases. The market continues to come under pressure due to worries of a supply glut and slowing global demand growth. Crude’s drop since October is on a par with the 2008 price crash and steeper than that of 2014-2015, both of which prompted OPEC to agree output curbs to support the market.
|Precious and Base Metals
Gold prices recovered from two-week lows, rising as much as 1 percent as the dollar fell after Federal Reserve Chairman Jerome Powell offered little clues on the pace of future interest rate hikes in a cautious speech. Meanwhile, palladium prices hit a fresh record high at $1,186.30 per ounce. While there was “a great deal to like” about U.S. prospects, the bank’s gradual interest-rate hikes are meant to balance risks as it tries to keep the economy on track, Powell said. Powell’s comments suggest that 2019 may be more of a wait-and-see approach and the assumption of any hikes may be premature. Spot gold was up 0.6 percent at $1,221.68 per ounce after rising as much as 1 percent to $1,226.24. Prices fell to its lowest level since Nov. 15 at $1,210.65 earlier in the session. U.S gold futures were up 0.7 percent at $1,222. Investors will also keep a close watch for the minutes from the central bank’s Nov. 7-8 meeting, scheduled to be released today, for indications on the rate hike trajectory in 2019. The Fed has raised rates three times this year. The dollar index, which measures the greenback against a basket of currencies, was down 0.3 percent after the Fed speech. Meanwhile, U.S President Donald Trump is likely to meet his Chinese counterpart on the sidelines of the G20 meeting later this week to discuss the trade dispute between the major economies. Bullion has largely lost out to the dollar as a safe haven asset this year as the U.S-China trade war unfolded against a backdrop of rising U.S interest rates. Silver rose 1.1 percent to $14.29 per ounce, while platinum fell 1.1 percent to $821.30, having earlier touched its lowest in more than a month, at $814.50. Copper edged higher yesterday after declining for three straight sessions, while other industrial metals moved in tight ranges amid uncertainty over the direction of the U.S.-China trade war.
Soybean futures rose yesterday on short-covering as investors waited to see if expected talks between Washington and Beijing at a G20 summit this week will defuse a trade dispute that has choked U.S soybean exports to China. Corn and wheat followed the firm tone, drawing additional support from a sharply weaker Dollar.
|Futures Settlement Price Wednesday, November 28, 2018|
|S & P 500||SPM18||2686||2744.75||2681||2742||58.25|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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