Daily Market View
Friday, September 14, 2018
| U.S Stock Market
U.S stocks made solid gains yesterday as Apple and Qualcomm led a rally in technology companies. Drugmakers and health insurers also rose. Apple changed course and rose a day after it introduced three new iPhone models and updates to the Apple Watch. Chipmakers recovered after a steep drop the day before. Stock indexes in Turkey and other emerging markets rose after the Turkish central bank raised interest rates sharply in response to the nation’s currency crisis. Technology stocks are edging higher after a four-day losing streak last week, their longest since April. Investors worried about the prospect of heavier regulation for companies like Facebook, Twitter, and Alphabet. The S&P 500 index gained 15.26 points or 0.5 percent. The Dow Jones Industrial Average rose 147.07 points or 0.6 percent. The NASDAQ jumped 59.48 points or 0.7 percent. The Department of Labor said its index of consumer prices edged up 0.2 percent in August, and it’s risen 2.7 percent over the past year.
|Major Economic Releases for Today|
|China Retail Sales (YoY)||02:00||8.8%||8.8%|
|Japan Industrial Production (YoY)||04:30|
||BOE’s Carney Speaks in Dublin||10:00|
|U.S Retail Sales Advance (MoM)||12:30||0.4%||0.5%|
|U.S Retail Sales Ex Auto and Gas||12:30||0.5%||0.6%|
|U.S Import Price Index ex Petroleum (MoM)||12:30||-0.1%||-0.1%|
|U.S Business Inventories||14:00||0.5%||0.1%|
|U.S U. of Mich. Sentiment||14:00||96.8||96.2|
|Baker Hughes U.S Rig Count||17:00||1048|
|Dow Jones Industrial Average
The Dow Jones Industrial Average added 0.57% to hit a new 6-month high yesterday. The biggest gainers of the session on the Dow Jones Industrial Average were Apple Inc., which rose 2.42% or 5.34 points to trade at 226.41 at the close. International Business Machines added 1.62% or 2.38 points to end at 148.95 and The Travelers Companies Inc. was up 1.53% or 1.94 points to 128.83 in late trade. Biggest losers included McDonald’s Corporation, which lost 1.42% or 2.34 points to trade at 162.40 in late trade. Home Depot Inc. declined 1.19% or 2.53 points to end at 209.45 and Exxon Mobil Corp shed 0.97% or 0.81 points to 82.32.
The tech-heavy NASDAQ index gained 0.75% yesterday. The top performers on the NASDAQ Composite were Impinj Inc. which rose 33.17% to 25.01, Yulong Eco-Materials Ltd which was up 30.71% to settle at 1.660 and Pinduoduo which gained 30.03% to close at 29.96. The worst performers were DHX Media Ltd which was down 40.74% to 0.80 in late trade, Dragon Victory International Ltd which lost 29.00% to settle at 1.42 and Oxbridge Re Holdings Ltd which was down 18.75% to 1.95 at the close.
Oil prices fell more than 2 percent, slipping back from four-month highs as investors focused on the risk that emerging market crises and trade disputes could dent demand even as supply tightens. The International Energy Agency warned that although the oil market was tightening at the moment and world oil demand would soon reach 100 million bpd in the next three months, global economic risks were mounting. U.S. crude settled down 2.5 percent at $68.62 barrel. This was the biggest single-day percentage drop in almost one month, correcting down from Wednesday’s jump in prices after the Energy Information Agency reported a 5.3 million-barrel drop in U.S. crude inventories, versus forecasts for 805,000-barrel drawdown. U.S companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting U.S business lobbies to urge President Trump’s administration to reconsider its approach.
|Precious and Base Metals
Gold prices slid yesterday as investors purchased riskier assets instead of seeking a safe haven in gold, amid hopes for a new round of U.S.-China trade talks. Spot gold declined 0.3 percent to $1,202.30 per ounce, after earlier hitting its highest level since Aug. 28 at $1,212.49. Bullion gained 0.7 percent in the previous session in its biggest single-day rise since Aug. 24. Gold pared gains as China became a focus point once again. U.S. gold futures for December delivery settled down $2.70, or 0.2 percent, at $1,208.20 per ounce. It’s a break of the correlation today between the dollar and gold. Even though the dollar is down, we’re not seeing that equate to higher prices in precious metals. The dollar index declined against a basket of major currencies after data showed U.S. consumer prices increased less than expected in August, paring traders’ outlook that domestic inflation is accelerating. A weaker dollar typically makes dollar-priced gold less expensive for holders of other currencies, but the correlation broke yesterday. The CPI data came after soft U.S. wholesale price data undermined the case for a faster pace of policy tightening by the Fed. The U.S. central bank is widely expected to raise benchmark interest rates at its September meeting. Higher rates make gold less attractive since it does not pay interest and costs to store and insure. In trade talks, senior U.S. officials sent an invitation to their Chinese counterparts to hold another bilateral trade meeting, raising speculation about a subtle shift in Washington’s policy. Months-long trade rift between Washington and Beijing has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute. This has driven investors toward record short positions in Comex gold and heavy liquidations in gold exchange-traded funds. But yesterday, possible progress in the trade rift pressured the U.S. dollar. Gold prices have fallen nearly 12 percent since a peak in April amid intensifying global trade tensions and under pressure from rising U.S. interest rates.
Corn and wheat futures were weak, with corn weighed down by the U.S Agriculture Department’s forecast for record U.S yields this fall.
|Futures Settlement Price Thursday, September 13, 2018|
|S & P 500||SPM18||2886.75||2907||2884.5||2905||16.5|
|Daily Swings (The Pivot Levels)|
Source: – News & Quotes (Courtesy: Reuters)
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