Daily Market View
Wednesday, August 08, 2018
| U.S Stock Market
U.S stocks closed higher yesterday as investors continued to brush aside anxiety over the trade war between the U.S and China and instead focus on positive corporate earnings. The NASDAQ rose for a sixth day in a row, its longest winning streak since March, led by Tesla Inc., which spiked following a tweet from Chief Executive Elon Musk that he was considering a move to take the company private, which was followed by confirmation from the company. The S&P 500 index rose 8.05 points, or 0.3%, gaining for a fourth session in a row as energy and industrial sectors led. The benchmark index is only 0.5% below its record close reached on Jan. 26. The Nasdaq Composite Index gained 23.99 points, or 0.3%, while the Dow Jones Industrial Average advanced for a third session, adding 126.73 points, or 0.5%. On the economic-data front, the latest report from the Labor Department showed there were 6.66 million job openings at the end of June, up fractionally from May’s levels and the third highest in history.
|Major Economic Releases for Today|
|Australia Home Loans (MoM)||01:30||0.0%||1.1%|
|RBA Governor Lowe Speech in Sydney||03:05|
|Japan Bankruptcies (YoY)||04:30||-2.26%|
|U.S MBA Mortgage Applications||11:00|
|Canada Building Permits (MoM)||12:30||-1.2%||4.7%|
|DOE U.S. Crude Oil Inventories||14:30|
|New Zealand RBNZ Official Cash Rate||21:00||1.75%||1.75%|
|U.K RICS House Price Balance||23:01||3.0%||3.0%|
|Japan Machine Orders (YoY)||23:50||10.0%||16.5%|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.50% to hit new 3-months high yesterday. The best performers of the session on the Dow Jones Industrial Average were Caterpillar Inc., which rose 2.08% or 2.90 points to trade at 142.38 at the close. Meanwhile, Exxon Mobil Corp added 1.36% or 1.09 points to end at 81.27 and Nike Inc. was up 1.28% or 1.02 points to 80.53 in late trade. The worst performers of the session were Apple Inc., which fell 0.94% or 1.96 points to trade at 207.11 at the close. Walgreens Boots Alliance Inc. declined 0.55% or 0.37 points to end at 67.05 and Pfizer Inc. was down 0.49% or 0.20 points to 40.84.
The tech heavy NASDAQ index climbed 0.31% yesterday. The top performers on the NASDAQ Composite were Wins Finance Holdings Inc. which rose 96.79% to 120.00, iFresh Inc. which was up 71.25% to settle at 4.11 and Egalet Corp which gained 36.42% to close at 0.58. The worst performers were Bellerophon Therapeutics Inc. which was down 68.44% to 0.710 in late trade, Gemphire Therapeutics Inc. which lost 50.55% to settle at 3.63 and Luminex Corporation which was down 28.04% to 24.98 at the close.
Crude-oil prices finished higher in yesterday’s trading session, with reinstated U.S sanctions against Iran seen as a threat to global supplies, especially after Saudi Arabia’s production has also recently contracted. On the New York Mercantile Exchange, West Texas Intermediate futures for September delivery rose 16 cents, or 0.2%, to $69.17 a barrel. The settlement marked the highest level for the most-active contract since July 30, according to Dow Jones Market Data. Brent crude for October the global benchmark was up 54 cents, or 0.7%, to $73.75 a barrel on London’s Intercontinental Exchange. Brent also booked its highest close in more than a week. Both contracts have gained for two of the past three sessions, moving within a relatively narrow range. The sanctions will remain in effect, U.S. officials said, unless Tehran meets a dozen stringent demands, including that it cease its support for militant groups in the Middle East and end its enrichment of uranium.
|Precious and Base Metals
Gold climbed nearly 1 percent yesterday, having drifted near $1,200 an ounce this week, as the dollar fell versus the Yuan while investors focused on strong corporate earnings rather than China-U.S. trade tensions. At the moment gold is more sensitive to the Yuan than the dollar (index), so if the dollar is rallying but not against the Yuan, gold is stable. The correlation (with the Yuan) is almost one on one. Chinese shares jumped the most in more than two years on hopes of fresh government spending and amid a pause in trade tensions, while the dollar slid versus the Yuan and a currency basket. A weak dollar makes dollar-priced gold cheaper for non-U.S. investors. Spot gold was up 0.7 percent at $1,214.96 an ounce, while U.S. gold futures were up 0.5 percent at $1,223.20 an ounce. Gold has dropped nearly 12 percent since mid-April, largely failing to benefit from trade tensions that have directed safety flows into the dollar away from other traditional safe havens such as gold. World shares edged towards a six-month high amid the rally in Chinese stocks and strong corporate earnings, with investors setting aside for now a host of simmering global feuds including a U.S. move to re-impose some sanctions on Iran. Those sanctions include precious metals, U.S banknotes, steel and coal. We believe a reversal in gold prices is in the offing, as speculation of a trade war and Iranian sanctions are turning into reality. Further, record short investors positions in gold strengthen our conviction of a price recovery in H2. U.S. data from last week showed investors added 13,931 contracts to their net short position in the week to July 31, bringing it to 41,087 contracts, the biggest since records became publicly available in 2006. Silver rose 1.1 percent to $15.43 an ounce. Platinum gained 1.6 percent to $833.97 per ounce.
Wheat retreated after closing at a three-year high on Monday, weighed down by slow demand for U.S exports despite expected crop shortfalls in several major exporting countries. Soybean futures firmed on Tuesday after a weekly government survey lowered condition ratings for the U.S crop by more than expected, raising concern about a smaller harvest this autumn.
|Futures Settlement Price Tuesday, August 07, 2018|
|S & P 500||SPM18||2849.25||2863.5||2848||2859.5||9|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)