U.S. Daily Market Review
Wall Street’s main indexes rallied today after higher earnings from big U.S. banks and Halliburton.At 9:32 a.m. ET, the Dow Jones Industrial Average secured 227.19 points, or 0.74%, to 31,041.45.The S&P-500 inclined 29.87 points, or 0.79%, to 3,798.12 and the Nasdaq Composite surged 133.96 points, or 1.03%, to 13,132.46.Tesla Inc soared 1.6% after Jefferies raised its earnings forecasts. Also, Boeing C gained 1.5% after Canada announced that would lift a near two-year flight ban on its 737 MAX following two fatal crashes.U.S. producer prices surged moderately in December, indicating in that an anticipated rally in inflation in the coming months will probably not be as big as previously predicted.The producer price index for final demand inclined 0.3% last month after adding 0.1% in November, according to the Labor Department.
ЕUR/USD On A Rise
The rate of the EUR/USD is boosted by the market mode.The pair advanced before Janet Yellen’s confirmation hearings for Treasury Secretary. As of this time, the Euro versus the USD trades at 1.2124. which is a rise of $0.00498 or 0.41% from the previous close of 1.20746.The daily trading range is from $1.2074 to 1.2144, while the trading volume is 151.31K.The US Dollar (USD) is falling against the common currency Euro and the majority of its other peers today.The hearing for President-elect Joe Biden’s nominee to run the Treasury Department, is expected to see Yellen lobby for a massive stimulation program of the economy.Yellen’s has been bringing in the importance for additional stimulus package, which his very likely to add to the market mode. Meanwhile, the Euro’s (EUR) accent against the US Dollar (USD) today has been aided by the apparent improvement in investor sentiment in the German economy, which is the powerhouse economy of the E.U.
European Daily Market Review
European markets managed to advance with shares in Germany leading the region. The DAX gained 0.31% while London's FTSE-100 inclined 0.16% and CAC-40 in Paris rallied 0.10%. Euro zone banks is very likely to tighten the credit line in the first quarter of this year, according to the European Central Bank.European markets have been buoyed by positive sentiment in the U.S. overnight.Investor sentiment in Germany jumped in January on higher estimates for exports.The survey of investors’ economic sentiment rallied to 61.8 from 55.0 points the previous month, ZEW said. Germany is the latest country to report new mutation of the coronavirus. An unknown model of the coronavirus had been discovered among 35 patients at a hospital in the Bavarian ski resort of of Garmisch-Partenkirchen, Germany.
Gold Prices Incline
Gold prices advanced today, during the Asian trading hours.The precious metal was able to recover fom the one-and-a-half-month bottom, marked during the previous session.This rise comes amid the expectations for additional stimulus measures to stimulate the economic recovery from COVID-19.Now, gold trades at $1843.81, which is another rise of $7.04 or 0.38% from the previous close of 1836.77.The daily trading range is from $1835.92 to 1845.04, while the trading volume is 120.695K.Gold futures were up 0.38% at $1,836.80 by 11:25 PM ET (3:25 AM GMT), after hitting the lowest point since Dec. 2 on Monday. The dollar was down on Tuesday. The market is focused on the signals coming from Secretary of the Treasury nominee Janet Yellen, on U.S. stimulus measures.Yellen will once again testify before the Senate Finance Committee and is expected to address issues from foreign-exchange policy to taxes. U.S. President-elect Joe Biden indicated a plan of $1.9 trillion stimulus measures proposal to boost the economy during the previous week.
Asian Daily Market Review
Asian markets are mostly higher on Tuesday morning as
investors across the region are seemingly looking forward to the expected
COVID-19 stimulus measures in the U.S.
In Australia the S&P/ASX 200 is gaining 1.2% as Sydney
heads into its final hours of trading for the day. Shares of the big four banks
are making significant contributions to the gain today, with ANZ up 1.9%, NAB
adding 1.7%, Commonwealth Bank modestly higher by 0.4%, and Westpac leading the
group as it gains 2.4%. Major miners are also helping keep the index in positive
territory as BHP advances 1.2% and Rio Tinto adds 1%.
In Japan the Nikkei is trading 1.6% higher, with the Yen
modestly softer against the U.S. dollar. Shares of Softbank are 2% higher, and
shares of Sony are 1% higher. Among the major exporters Toyota is up 1.3%,
Panasonic has a 0.5% gain, and Canon has advanced 0.9%.
Mainland Chinese markets are bucking the rising trend from
across the region however, losing ground despite the solid GDP data reported
just a day ago. The benchmark Shanghai Composite is flat with a slight gain of
less than 0.1%, while the smaller cap Shenzhen Composite has dropped 0.8%.
Meanwhile in Hong Kong the Hang Seng is taking its own direction and leading
the region with a gain of 3%.
In South Korea the Kospi is also rallying with a 2.&%
advance, and in Taiwan the Taiex is trading 1.4% higher.
Southeast Asian markets are mixed as the Straits Times in
Singapore adds 0.4% and Malaysia’s KLCI is up 0.3%, but the Jakarta Composite
in Indonesia is 0.6% lower.
Netflix Has A Lot To Prove
Streaming giant Netflix will report its fourth quarter
earnings on Tuesday January 19 after U.S. markets close. It will be a key
earnings report for Netflix as some analysts have begun to claim that the reign
of Netflix as the king of streaming video is done. This quarter’s results could
put that claim to the test.
Netflix shares were one of the top performers in early 2020
as the COVID-19 trade lifted shares of any company that might benefit from the
stay-at-home trend. Netflix certainly fit that bill, and its first and second
quarter subscriber growth was nothing short of stunning.
However since July the stock has been stuck in a broad
range, bouncing from support at the $470 level four separate times, and held
back by resistance at the $550 level three different times. As of last Friday
shares were trading at $497.98 as investors have been selling shares ahead of
the fourth quarter earnings results.
As far as earnings go Netflix is expected to report $1.41 a
share on revenues of $6.62 billion. That’s a modest increase of 8.4% over the
same quarter a year ago. But what will be most important is the subscriber
growth numbers reported by Netflix.
That’s where the company disappointed investors in the third
quarter, reporting an anemic growth of 2.2 million new subscribers. For the
fourth quarter Wall Street is expecting 5.9 million new subscribers, but that
honestly might not be enough given the huge increases that streaming
competitors Disney and Roku have been delivering.
If Netflix disappoints look for shares to plummet through
the support at the $470 level.
U.S. Daily Market Review
U.S. stock futures are mainly quiet today amid quiet holiday trade.Dow Jones Industrial Average futures slipped 5 points, or 0.02%, while S&P-500 futures and Nasdaq inclined only around 0.02%.U.S. retail sales dropped further in December as renewed reduction measures to slow the spread of COVID-19 hurt largely consumer spending at restaurants and reduced traffic to shopping malls.Retail sales fell 0.7% last month, according to the Commerce Department. Data for November was revised down to show sales lost 1.4% instead of the estimate of 1.1%.The USD managed to appreciate around 1.5% against a basket of other major currencies since its recent bottom marks.U.S. producer prices advanced moderately in December, suggesting that an anticipated pick up in inflation in the coming months will probably not be worrisome.The producer price index for final demand increased 0.3% last month after added only 0.1% in November, as reported by the Labor Department.
European Daily Market Review
European stocks lost some ground today as French retailer Carrefour slipped largely after ending 16.2 billion euro ($19.57 billion) merger talks with Alimentation Couche-Tard.The pan-European STOXX-600 fell 0.1% after snapping a four-week winning run on Friday.The German government has finalised its 2020 budget. The new debt creating is planned for less than 150 billion euros ($181 billion).Italian 10-year bond yields surged around 9 basis points last week. This takes place as Prime Minister Giuseppe Conte faced two days of parliamentary votes will whether his government will preserve its power.The coronavirus pandemic and rollout of vaccinations is still in the main media focus. The Netherlands many thousand people took the streets against the lockdown measures on Sunday.Meanwhile, the U.K. continues to lead the pace when it comes to the rollout of vaccinations.
The USD On A Rally
The rate of the USD slightly rallied today, preserving its advancing path, registered at the end of the previous week.Most traders and investors are focused on the safe-haven asset amid disappointing U.S. economic data and the jumping number of COVID-19 cases.Presently, the USD versus the Euro trades at 0.83000000 EUR, which is an incline of 0.00500000 or 0.61% from the previous close of 0.82500000.The daily trading range is from 0.82240000 to 0.83040000, while the trading volume is 12.84K.The USD Index secured around 0.05% to 90.800 by 10:46 AM ET (3:46 AM GMT).The numbers indicated in that GDP added 6.5% year-on-year in the fourth quarter, marking its ground above the forecast 6.1% growth but below the 4.9% growth in the third quarter. Meanwhile, investors are also digesting U.S. economic data released on Friday. The data showed that core retail sales contracted 1.4% month-on-month in December.Moreover, the USD has been boosted by the Democrat victories in the runoff Senate elections in the state of Georgia, which gave Democrats control of the Congress.
Crude Oil Prices Slipped
Crude oil prices dropped this morning during the Asian hours, after marking its largest retreat in almost four weeks on a combination of a higher rate of the USD.Now, oil trades at $52.169, which is an incline of $0.059 or 0.11% from the previous close of 52.110.The daily trading range is from $51.744 to 52.301, while the trading volume is 12.946K.Brent oil futures tumbled 0.55% to $54.54 by 8:33 PM ET (1:33 AM GMT). At the end of last week, U.S. data came lower than predicted saw futures in New York tumble up to 2.3% on the same day. The data showed that core retail sales fell 1.4% month-on-month in December more than estimates.The data also showed that the Producer Price Index (PPI) grew 0.3% month-on-month in December, while retail sales lost 0.7% month-on-month in December.The data demonstrated the challenges facing the U.S. economic recovery from COVID-19.The rising rate of the USD over the past few days also capped gains for oil, as it is priced and traded in the USD.Meanwhile, Libya’s oil supply dropped about 200,000 barrels per day after a leaking pipeline was closed.
Asian Daily Market Review
Asian markets are mixed on Monday morning in thin trade
ahead of a U.S. holiday. Investors are worried over the weak consumer spending
data reported in the U.S. last Friday, and on the potential for riots to mark
the inauguration of president-elect Biden this coming Wednesday. Meanwhile in
China markets are climbing in response to better than expected GDP data.
Japan’s Nikkei is trading 0.8% lower, although the Yen
remains basically flat versus the U.S. dollar. Shares of Softbank are trading
0.6% higher, but Sony is down 1%. Among the major exporters Toyota are 1.4%
lower and Canon is falling 2.5%, but Panasonic has a 1.6% gain.
On mainland China markets are rallying following the better
than expected GDP data that showed a 6.5% growth in the fourth quarter. The
benchmark Shanghai Composite is trading 0.4% higher and the smaller cap
Shenzhen Composite has a gain of 1.1%. Meanwhile in Hong Kong the Hang Seng is
rising 0.6% in synch with the mainland.
In Australia the S&P/ASX 200 has a 0.9% loss, with the
big four banks contributing to the broader loss. Shares of ANZ are 2% lower,
NAB trades down 2.4%, Commonwealth Bank is losing 1.3%, and Westpac has a 1.1%
loss. Major miners are also contributing to weakness as BHP trades down 3.4%
and Rio Tinto loses 1.6%.
South Korea’s Kospi is 0.9% lower today, and in Taiwan the
Taiex has fallen 0.5% in early trade.
In Southeast Asia markets are mixed as Indonesia’s Jakarta
Composite is adding 0.5%, but Singapore’s Straits Times index has a 0.7% loss,
and Malaysia’s KLCI is down 0.9%.
Laggard Energy Could Be 2021s Big Winner
Energy shares were once over 10% of the market cap of the
S&P 500, but with last year’s pandemic nearly killing travel and industry,
that fell under 3% in 2020. Some fund managers even gave up completely on the
sector based on the fact that not only was it a dog in 2020, but energy has
underperformed the broader market over the past decade.
After all, why add 5% on energy to your portfolio when you
can add 5% more Apple or Tesla?
The thing is, common wisdom in the stock market dictates
that the most beaten down sectors are those with the most to gain. And some
analysts are beginning to think that 2021 will be the year that energy recovers
from its decade long doldrums.
Already energy names are up 18% in 2021, with just two weeks
of the year in the bag. Those gains come despite a struggle in the S&P 500
that has the benchmark index up less than 1% since the start of the year.
Strangely enough, it could be the same fear of missing out
that sends the energy sector higher in 2021 as changing fundamentals and
sentiment drive all the fund managers who’ve dumped energy over the past decade
back into the rising trade.
While demand remains weak now, the future dynamics look very
positive. Demand should recover strongly later in the year, and the Biden
presidency is likely to limit the growth of future supply.
Perhaps most tellingly is that names like Exxon Mobil are
now getting upgrades from analysts, which could be the beginning of a shift in
U.S. Daily Market Review
Wall Street’s main indexes partly declined today as President Joe Biden’s $1.9 trillion stimulus plan sparked fears of a rises in taxes.The Dow Jones Industrial Average slipped 64.7 points, or 0.21%, at the open to 30926.77. The S&P-500 dropped 6.8 points, or 0.18%, at the open to 3788.73, while the Nasdaq Composite dropped 12.7 points, or 0.10%, to 13099.895.U.S. retail sales fell further in December as renewed measures to slow the spread of COVID-19 undercut spending at restaurants and reduced traffic to shopping malls.Retail sales dropped 0.7% last month, the Commerce Department said on Friday. U.S. business inventories surged in November, supporting expectations that inventory investment.Business inventories added 0.5% in November after increasing 0.8% in October, according to the Commerce Department said on Friday. U.S. consumer sentiment tumbled early January as Americans reacted to the assault on the Capitol building.The University of Michigan’s consumer sentiment index dropped to 79.2 early this month from a final reading of 80.7 in December. The producer price index for final demand increased 0.3% last month after securing 0.1% in November, as reported by the Labor Department.
European Daily Market Review
European markets are into a mixed pattern.The CAC-40 added 0.33%, while the FTSE 100 is leading the DAX dropped 0.57% and 0.48% respectively.The pan-European STOXX-600 slipped 0.5% by 0804 GMT.Carrefour shares dropped more than 5% to the bottom of the Stoxx 600 in early trade.German business software group SAP soared 1.6% after it released preliminary annual results higher than forecasts.German Chancellor Angela Merkel demands “fast action” after the country marked record number of deaths from the coronavirus.Italy has been plunged into political turmoil once again as former Prime Minister Matteo Renzi decided to pull his support for the current coalition government on Wednesday. Italian Prime Minister Giuseppe Conte refused to leave his office yesterday, after a junior coalition party led by former premier Matteo Renzi.
The USD On A Rise
The USD rallied after President-elect Joe Biden outlined his plans for additional stimulus package. The Federal Reserve Chairman Jerome Powell refused to join any discussion about reducing monetary stimulus. Presently, the USD versus the Euro trades at 0.82580000 EUR, which is an incline of 0.00400000 or 0.49% from the previous close of 0.82180000.The daily trading range is from 0.82060000 to 0.82580000, while the trading volume is 53.092K.Biden outlined his plan of $1.9 trillion spending plan overnight, including additional direct payments to households.However, advances are limited after Fed Chair Jerome Powell adopted a very dovish tone.Last Friday’s jobs report implied in the U.S. dropped 140,000 payroll positions in December, while the December CPI annual figure advanced 1.4%.