Daily Market View
Friday, August 10, 2018
| U.S Stock Market
U.S stocks closed mostly lower yesterday as weak energy and industrial shares weighed on the market, but the NASDAQ bucked the trend to rise for an eighth straight session, logging its best winning streak since October. Closing numbers for key benchmarks, however, do not tell the full story, with the S&P 500 having spent most of the day in positive territory and then retreating toward the closing bell along with the NASDAQ, trimming its gains as the tech sector turned weak. The Dow Jones Industrial Average fell 74.52 points, 0.3%, while the S&P 500 shed 4.12 points, or 0.1%. The NASDAQ Index edged up 3.46 points. For the week, the Dow is set to gain 0.2%, the S&P 500 is on pace to advance 0.5% and the NASDAQ is on track for a weekly return of 1%. Trading in recent sessions has mostly been a tug of war between concerns about the continuing trade dispute between the U.S and China and positive sentiment over strong corporate earnings against a healthy economic backdrop.
|Major Economic Releases for Today|
||RBA Quarterly Statement on Monetary Policy||01:30|
|U.K Trade Balance||08:30||-£2500||-£2790|
|U.K Industrial Production (YoY)||08:30||0.7%||0.8%|
|U.K Gross Domestic Product (YoY)||08:30||1.3%||1.2%|
|Canada Net Change in Employment||12:30||17.0k||31.8k|
|Canada Unemployment Rate||12:30||5.9%||6.0%|
|U.S Consumer Price Index (YoY)||12:30||2.9%||2.9%|
|U.S Real Avg Hourly Earnings (YoY)||12:30||0.0%|
|U.S Monthly Budget Statement||18:00||-$74.9b|
|Dow Jones Industrial Average
The Dow Jones Industrial Average declined 0.29% yesterday. The best performers of the session on the Dow Jones Industrial Average were Dow DuPont Inc., which rose 2.01% or 1.36 points to trade at 69.02 at the close. Meanwhile, UnitedHealth Group Incorporated added 1.07% or 2.78 points to end at 261.59 and Nike Inc. was up 0.94% or 0.76 points to 81.26 in late trade. The worst performers of the session were Procter & Gamble Company, which fell 1.15% or 0.95 points to trade at 81.40 at the close. 3M Company declined 1.14% or 2.36 points to end at 204.78 and Goldman Sachs Group Inc. was down 1.10% or 2.59 points to 233.78.
The tech heavy NASDAQ index climbed 0.04% yesterday. The top performers on the NASDAQ Composite were Carver Bancorp Inc. which rose 84.22% to 7.240, TMSR Holding Company Ltd which was up 55.69% to settle at 6.50 and Citius Pharmaceuticals Inc. which gained 48.25% to close at 1.690. The worst performers were Maiden Holdings Ltd which was down 41.33% to 4.40 in late trade, iPass Inc. which lost 29.31% to settle at 0.2750 and Ultra Petroleum Corp which was down 25.44% to 1.260 at the close.
Crude prices settled slightly lower yesterday, extending the previous session’s losses as the escalating China-U.S. trade dispute casts doubt over the outlook for oil demand. Brent crude futures fell 21 cents to settle at $72.07 a barrel. U.S crude fell 13 cents to $66.81 a barrel. Both benchmarks tumbled more than 3 percent on Wednesday after U.S. data showed a smaller-than-expected weekly draw in crude inventories and a surprise build of 2.9 million barrels in gasoline supplies. Analysts polled by Reuters had forecast a 1.7 million-barrel draw in gasoline stocks. The trade war is rattling global markets. Investors fear any slowdown in the world’s two largest economies would slash demand for commodities. Oil traders were also worried about Chinese demand. Crude imports picked up in July after two months of decline, but were still among the lowest this year.
|Precious and Base Metals
Gold prices were mostly steady in range-bound Asian trade yesterday, after gaining for two straight sessions, with a strong dollar weighing on upside momentum. Spot gold was up 0.1 percent at $1,214.23 an ounce, having gained 0.2 percent in the previous session. U.S. gold futures were up 0.1 percent at $1,222.2 an ounce. The U.S. dollar yesterday stabilized versus the yen after earlier in the session dropping to a two-week low ahead of trade talks between the United States and Japan and amid speculation over when the Bank of Japan will exit its ultra-easy monetary policy. The greenback was steady versus the Yuan and up 0.1 percent against other major rivals. There’s no major event that’s driving gold prices…It’s going to be trading in a very tight range. It seems that people are still thinking the rate hike is going to come, so gold is not really a good investment for now. If there are expectations of faster rate hikes or higher inflation, then gold prices will see further downside pressure. The U.S. Federal Reserve has raised benchmark interest rates two times so far this year and targets two more hikes in the near-term with the next one slated to come in September. Higher U.S. rates tend to boost the dollar and treasury yields, adding pressure on greenback-denominated, non-yielding gold. The U.S. economy is strong enough to warrant further interest rate increases by the central bank, Richmond Fed President Thomas Barkin said on Wednesday. China late on Wednesday said would it slap additional tariffs of 25 percent on $16 billion worth of U.S. imports, in retaliation to news the United States plans to begin collecting 25 percent extra in tariffs on $16 billion of Chinese goods from Aug. 23. Gold prices can benefit from uncertainty, as the metal is traditionally seen as a safe place to park assets, alongside the yen. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.18 percent to 786.08 tonnes on Wednesday, hitting the lowest since August 2017. In other precious metals, silver rose 0.2 percent to $15.41 an ounce.
Corn fell in yesterday’s trading session as better than expected ratings of U.S crops from the U.S Department of Agriculture (USDA) weighed on prices.
|Futures Settlement Price Thursday, August 09, 2018|
|S & P 500||SPM18||2853.5||2862.75||2852||2854||-1.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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