U.S. Daily Market Review
U.S. stocks markets are still without a clear market direction as the market weighed prospects of a post-pandemic economic recovery against protests are across the streets.At 11:33 a.m. ET, the Dow Jones Industrial Average surged 8.31 points, or 0.03%, at 25,391.42.The S&P-500 inclined 1.61 points, or 0.05%, at 3,045.92. The Nasdaq Composite gained 29.94 points, or 0.32%, at 9,519.82.As a matter of fact, the S&P index marked 17 new 52-week highs.Many Facebook workers publicly criticised the social giant. This comes after top management’s decision not to take any actions about inflammatory posts that President Trump had placed on the online platform over the last week.U.S. construction projects fell less than initially predicted 2.9% in April, according to the Commerce Department.Analysts polled by MarketWatch had estimated a loss of 6.8% due to the coronavirus pandemic. Residential construction reduced 4.5% in April.
European Daily Market Review
European markets rallied today as French and British stocks advanced. The French CAC-40 inclined 1.08% while the FTSE-100 secured 0.92%. The German DAX is closed.The global attention is not turned on the U.S., where there is a serious clashes. The streets are full with protesters and police clashes in cities across America after the killing of George Floyd.Simultaneously, Derek Chauvin, the officer filmed kneeling on Floyd’s neck, was arrested and charged with murder and manslaughter.U.K. manufacturing fell at the lowest rate in May as lockdown restrictions slowly started to ease.IHS Markit’s Purchasing Managers Index for the sector jumped 40.7 from the record low 32.6 in April. Associated British Foods is the hit after surging a whole 8.5% after a report that the vast majority of its Primark clothing stores in the U.K. would be open from June 15.
Gold Prices Rise
Gold prices rallied this morning during the Asian trading hours, with investors becoming more interested to the safe-haven asset after tensions between the United States and China advanced.Washington warned to end Hong Kong’s special trade status. This comes as a response to China’s national security laws for Hong Kong and Macau.Presently, the precious market trades at $1743.01, which is an incline of $11.81 or 0.68% from the previous close of $1731.20.The daily range is from $1729.46 to 1743.54, while the trading volume is 62.552K.Remarks from U.S. Federal Reserve Chair Jerome Powell further ruined investors’ risk appetites when he indicated that economic recovery from the impact of COVID-19 could be derailed.Issues surged about the impact to the economic recovery, as well as the possibility of a second wave of infections.
Asian Daily Market Review
Markets across Asia are heading broadly higher on Monday
morning as investors react to China’s May factory data, which was weaker than
expected, but was still above the 50 reading that separates expansion from
Mainland China’s Shanghai Composite is trading 1.8% higher,
while the smaller cap Shenzhen Composite has a 2.8% gain. In Hong Kong the Hang
Seng is leading gains for the region with a 3.5% jump, despite President Trump
announcing on Friday he would be acting to remove the special economic
treatment that Hong Kong has enjoyed with the U.S.
In Australia the S&P/ASX 200 is adding 0.9% with the big
four banks edging higher as Sydney heads into the afternoon ahead of the rest
of Asia. Shares of ANZ are 1.1% higher, NAB is gaining 1.3%, Commonwealth Bank
is up 0.5%, and Westpac is trading 0.8% higher. Miners are making strong gains,
with BHP 2.8% higher, Rio Tinto gaining 3.8%, and iron giant Fortescue Metals
In Japan the Nikkei is up 1.2%, although the Yen continues
to trade flat against the U.S. dollar at the 107.60 level. Shares of Softbank
Group are soaring 3.9% higher, while Sony is up a more modest 0.8%. Meanwhile
retail giant Fast retailing is up by 2.8%.
In South Korea the Kospi has a 1.4% gain, and Taiwan’s Taiex
is matching that with its own 1.4% advance.
Southeast Asian markets are broadly higher as well as
Singapore’s Straits Times Index adds 1.7%, the KLCI in Malaysia trades 1.1%
higher, and the Jakarta Composite in Indonesia has a 0.8% gain.
Will Boeing's Rally End As Production Resumes
Aircraft maker Boeing has seen its shares beaten down over
the past year, first from the fallout from the two deadly crashes that led to
the grounding of Boeing’s MAX 737 model, and later from the impact of the
coronavirus pandemic that’s seen airlines grounding as much as 95% of their regular
May has been much better so far, with shares rising nearly
25% in two weeks from a May 14 low of $117.78 to the close Thursday at $149.82
a share. Yet that still leaves the stock well off its September 25 high of
$391.00 a share, and 58.2% lower since the start of 2020.
On Wednesday the company announced it is finally restarting
production of the MAX 737, more than 14 months after halting production to
investigate the two deadly crashes that occurred within two months of each
other. That news, although it’s been expected for some time, sparked a rally in
shares on Thursday.
However the stock gave back those gains on Friday as shares
plunged 3.6% lower in response to the rising tensions between the U.S. and
China. It’s expected that the U.S. will reintroduce sanctions against China,
and against Hong Kong, which is no longer considered autonomous by the U.S.
after China passed national security laws that are expected to severely impact
freedoms on the island.
Boeing also announced more layoffs on Wednesday as it
realized it needs to cut costs to remain profitable. Production may have
resumed, but at a far lower level than previously. Plus it isn’t likely
airlines will be buying new planes anytime soon.
The Rate Of The USD Drops
AThe USD partly slipped in early European trading hours.However, trading ranges have been tight as traders attempt to weigh up mixed signals of the economic recovery.Now, the Euro currency managed to add very slight ground versus the USD. The common currency trades at 1.1108, which is a minor incline of $0.00320 or 0.29% from the previous close of $1.10764.The daily trading range is from $1.1067 to $1.1145, while the trading volume is 352.759K.Moreover, German retail sales tumbled at the fastest since 2007 in April, according to the numbers. This represents a decline of 5.3% on the month. This was was as massive as initially estimated, which is a sign of the relative resilience of Europe's leading economic power.Meanwhile, the U.S., Thursday’s initial jobless claims indicated in that over two million Americans are officially unemployment benefits for the first time last week.
U.S. Daily Market Review
U.S. stocks are into a lower side, but were set for higher weekly marks.This comes amid tensions between the U.S. and China, a clash that could derail a market that is hoping to regain its ground.The Dow Jones Industrial Average slipped 122 points, or 0.5%, at 25,278.The S&P-500 index dropped 0.3% at 3,023, while the Nasdaq Composite added 0.3% at 9,402. U.S. consumers reduced their spending by the most on record for the second straight month in April. The Commerce Department announced that consumer spending fell 13.6% last month. This was the largest retreat since the government started tracking the series in 1959. The coronavirus has resulted in higher saving rate. As a matter of fact, personal savings rate reached a record level of 33% in April, according to the U.S. Bureau of Economic Analysis.
European Daily Market Review
European markets partly fell today with shares in Germany losing the most.The German DAX dropped 1.41%, the French CAC-40 retreated 1.19% and London's FTSE-100 tumbled 0.98%.The Stoxx Europe 600 index declined 0.8% after a gain of 1.6% on Thursday. European Union Trade Commissioner Phil Hogan yesterday reported that the continent is about to move forward when Brexit negotiations with the U.K. restart next week.Shares of BMW AG lost 2%, while Daimler AG slipped 3.60% shares and Volkswagen AG fell 3% each.Shares of Rolls-Royce Holdings PLC dropped 6% after S&P Global Rating’s downgraded company credit rating.
Crude Oil Prices Further Decline
Oil prices further lost some ground after U.S. inventory data showed lacklustre fuel demand in the U.S.Meanwhile, there are rising tensions between U.S.-China, which is creating in negative pressure on oil prices.Presently, oil trades at $33.01, which is a loss of $0.62 or 1.83% from the previous close of $33.63.The daily trading range is from $32.87 to $33.75, while the trading volume is 96.394K.Yesterday, numbers from the Energy Information Administration indicated in that U.S. crude oil and inventories largely jumped last week. Fuel demand is still at low levels even as many states removed travel restrictions they had imposed to curb the coronavirus pandemic.OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia will meet to discuss additional output limitations in the second part of June.In addition, Saudi Arabia and some OPEC members are about to add to the record production reductions of 9.7 million barrels per day beyond June.
Asian Daily Market Review
Asian markets headed mostly lower on Friday morning as the
new Chinese national security legislation puts the future of Hong Kong in
question, and as investors await a Friday press conference in the U.S. where
President Trump will announce the U.S. reaction to the new laws that have Hong
Kong no longer considered as autonomous by the U.S.
Mainland Chinese markets are flat to higher, with the
Shanghai Composite basically flat on the day, while the smaller cap Shenzhen
Composite is 0.5% higher. Investors in Hong Kong aren’t as upbeat however and
the Hang Seng is 0.7% lower as a result.
In Japan the Nikkei is down 0.4% as investors return from
the lunch break to resume trading in the afternoon. In contrast to the
broad-based loss, shares of Softbank Group are trading 0.8% higher and Sony has
a 0.7% gain. Meanwhile Japanese exporter shares are falling due to a stronger
Yen. Panasonic is trading 1.7% lower, and Canon has a 3.8% loss.
In Australia the S&P/ASX 200 is leading losses for the
region, falling 1% today after leading gains across the region for much of the
week. The big four banks are giving back some of the substantial gains made
this week, with ANZ down 3.8%, NAB losing 4.3%, Commonwealth Bank off by 1.8%,
and Westpac trading 4.8% lower.
In South Korea the Kospi is down 0.4%, and the Taiex in
Taiwan has a 0.3% loss.
Southeast Asian markets are mixed, with the Straits Times in
Singapore losing 0.4% and Malaysia’s KLCI down less than 0.1%, while the
Jakarta Composite in Indonesia is up 0.3%.
HP Beats Earnings Expectations But Stock Tanks
Computer and printer manufacturer HP Inc reported better
than expected earnings, but weaker than expected revenues for the first
calendar quarter. They also released weaker than expected forward guidance, causing
the stock to tank 12.3% Thursday.
Earnings for the quarter were $0.51 a share, which was
better than the $0.45 expected. At the same time revenues fell 11.2% on a
year-over-year basis to $12.5 billion versus $12.86 billion expected. While the
work from home trend and cost cutting at HP helped results it was the forward
guidance that caused the stock to tank.
HP management provided guidance for the next quarter of $0.39
to $0.45 a share versus expectations of $0.47 a share. HP’s CFP Steve Fieler said “We believe we are undervalued,” when talking
about the share price before Thursday’s plunge. If true then HP shares, which
closed Thursday at $15.01, are a real bargain.
The company said the first quarter results were
hampered by supply chain disruptions in China, but that those had been resolved
and there were currently no issues with sourcing parts. They also pointed to
the growing number of employees working from home as a factor in a jump in the
sales of their notebook computers, and said that trend could continue through
the end of this year.
Shares of HP have remained weak even after the
market began its recovery from the March selloff. While the low of $12.54 was
hit in late March, another low of $13.90 was hit in mid-May and given the sharp
decline on Thursday the stock could come down to test that level for support.
U.S. Daily Market Review
U.S. equity markets rallied amid a batch of economic data that demonstrated solid loss to the American economy.The U.S. economy dropped 5% in the first quarter instead of the expected 4.8%, according to government data.Pending home sales slipped at the fastest rate more-than-expected 21.8% in April, compared with March, as reported by the National Association of Realtors. Further 2.123 million Americans became officially unemployment benefits in the week ending May 23. This is greater than 2.1 million initial jobless claims. The prior week’s figure was revised higher to 2.446 million from 2.438 million jobless claims. The yield on the benchmark 10-year Treasury note secured another 2 basis points to 0.689% and the yield on the 30-year Treasury bond gained 3 basis points at 1.45%. Yields move inversely to prices.
European Daily Market Review
European markets are into a higher side with shares in France leading the region. European markets rallied for fourth straight session and the euro currency marked a two-month high.The CAC-40 soared 1.10%, London's FTSE-100 inclined 1.03% and Germany's DAX gained 0.54%.Euro zone bond yields are into a stabled mode with Italian borrowing costs.The Turkish central bank brought its short-term borrowing from local lenders to record levels. The country’s foreign-currency swap stock coming due within the next year rose by $5.9 billion in the month to $35.5 billion in April, according to the latest numbers.British budget air carrier easyJet reported that it would reduce its labor force by little more than 30%.The company also reported that it was allowing its aircraft to lease, which was expected to bring back around between £500 million and £650 million.
The USD Stands Into Solid Poistion
The USD is into a solid position this morning amid higher Sino-U.S. tension, which resulted in rising pressure on the Chinese yuan.As a matter of fact, the verbal tensions of the two leading economies spilled over to the Australian and New Zealand dollars.Presently, the Euro versus the USD trades at $1.1006, which is a minor addition of $0.00039 or 0.04% from the previous close of $1.10029.This is the case after the European Union's officials unveiled a 750 billion euro stimulation plan to boost the economies of the bloc in the aftermath of the pandemic.The daily trading range is from $1.1001 to $1.1035, while the trading volume is 71.995K.In reality, the Aussie and kiwi backed off two-month peaks in the London session. This is even the case as the re-opening of the world's economies preserved the rallying path.
Crude Oil Prices Fall
Oil prices dropped for a second session in a row this morning. This comes as the coming data from the U.S. indicated in a solid and unexpected surge of crude oil inventories.Now, oil trades at $31.90, which is a decline of $0.30 or 0.93% from the previous close of $32.20.The daily trading range is from $31.12 to 32.37, while the trading volume is 130.283K.The falling mode added to the retreats amid the concerns over Russia's commitment to add to the oil production reductions in the coming June 9 meeting of OPEC and its allies. Data from U.S. industry group API demonstrated that crude stocks jumped by 8.7 million barrels in the week to May 22 against estimates of 1.9 million barrels.