The Daily Call

Daily Market Recap | US Equities | Bonds | Europe | Canada | South America | Asia

Daily Market Recap

Tyler Nugent, Julian Gendels (203) 861-7650 | 10.26.2018

 
Component
Close
Change
% Change
YTD Chg
Component
Close
Change
% Change
YTD Chg
DJIA
24,688.31
-296.24
-1.19%
-0.1%
Energy
492.59
-3.88
-0.78%
-7.7%
S&P 500
2,658.69
-46.88
-1.73%
-0.6%
REIT
1,102.35
-24.82
-2.20%
-4.7%
NASDAQ Comp
7,167.21
-151.12
-2.07%
3.8%
Materials
318.04
-2.09
-0.65%
-16.1%
Russell 2000
1,483.82
-16.58
-1.10%
-3.4%
Industrials
581.00
-5.71
-0.97%
-8.9%
 
 
 
 
 
Consumer Stap
554.62
-9.51
-1.69%
-5.6%
 
 
 
 
 
Consumer Disc
821.21
-30.24
-3.55%
4.6%
Nikkei
21,184.60
-84.13
-0.40%
-6.9%
Health Care
1,011.70
-11.01
-1.08%
5.8%
DAX
11,200.62
-106.50
-0.94%
-13.3%
Financials
419.35
-5.75
-1.35%
-9.6%
FTSE 100
6,939.56
-64.54
-0.92%
-9.7%
Info Tech
1,195.35
-22.79
-1.87%
8.1%
Hang Seng
24,717.63
-276.83
-1.11%
-17.4%
Telecom
146.55
-3.61
-2.40%
-11.8%
 
 
 
 
 
Utilities
271.09
-4.69
-1.70%
1.4%
VIX
24.16
-0.06
-0.25%
118.8%
NYSE BTK
4,536.86
-49.32
-1.08%
7.5%
 
 
 
 
 
Crude
67.67
0.72
1.08%
12.0%
 
 
 
 
 
Natural Gas
3.20
0.03
1.01%
8.4%
Market Volume
10,192.79
-
-
-
Gasoline
181.76
1.14
0.63%
1.0%
Market Value
539,918.63
-
-
-
 
 
 
 
 
 
 
 
 
 
Gold
1,233.95
1.78
0.68%
-5.3%
USD Spot Index
96.32
-0.36
-0.37%
4.6%
Silver
14.70
0.05
0.36%
-13.2%
Euro Spot Index
1.14
0.00
0.30%
-5.0%
Copper
274.85
-0.40
-0.78%
-16.7%
Dollar / Yen
111.82
-0.60
-0.53%
0.8%
10 Yr Yield
3.08
-0.03
-0.84%
3.1%

 

US Equities

Tyler Nugent, Julian Gendels (203) 861-7650 | 10.26.2018

 

Today, the Dow Jones fell 119 bps, the S&P 500 slid 175 bps and the Nasdaq underperformed sliding 207 bps where volumes were 37% better than the twenty day average. All sectors finished in the red today with materials outperforming climbing 62 bps while consumer discretionary fell 354 bps. In relation to the recent bomb threats, a person has been taken into custody in Florida after a total of 12 devices were found. There was a slew of economic data today where third quarter GDP showed a +3.5% quarter over quarter SAAR, beating estimates of 3.3%. Consumer spending jumped 4% beating estimates. Private inventories also a positive contributor, up to 2.1% following Q2 contraction. Net Exports a 1.8% drag after a 1.2% contribution in Q2. Fixed investments also a slight drag, shaving off 4bps from GDP, the first decline since Q4 2015. Residential fixed investment the culprit, contracting for the third consecutive quarter. Business fixed investment positive, but lowest growth since Q4 2016. Government Spending contributed 0.6%, up 0.2pp quarter over quarter. Final October sentiment reading registered 98.6 versus consensus for 99 and weaker than September final 100.1. In other news, AMZN (-8%) was hit by revenue guidance that came in -5% below the street and AWS and unit growth deceleration. However, profitability was better, company said it expects a strong holiday season and stressed there is “no message” in the guidance. GOOGL (-3%) reported a slight revenue miss (first since 1Q16) thought Street takeaways positive with focus on continued strength in mobile and YouTube. INTC (3.5%) rallied after it beat and raised on data center and PC strength. WDC (-18%) highlighted declines in flash pricing and more challenging global business environment. SNAP (-12%) guided for continued DAU declines in Q4. MLNX (+16%) rallied after CNBC reported the company has hired a financial advisor to pursue a potential sale. LOGM (+11%) reported third quarter results where earnings and revenues beat. ROP (+7%) climbed after reporting strong third quarter organic growth. MHK (-19%) fell after third quarter results missed and the company lowered guidance. AKS (-9%) fell after Q3 EBITDA missed on lower volumes and higher costs and company guided below for Q4.

Weeden & Co. Top Advertisements:

    • SNAP: 800,000 shares
    • ORCL: 765,000 shares
    • BAC: 760,000 shares
    • SEAC: 715,000 shares
    • BBD: 700,000 shares

Bonds

Tyler Nugent, Julian Gendels (203) 861-7650 | 10.26.2018

 

Treasuries advanced today, extending weekly gains, as stocks continued their month-long slide, led by technology shares. Yields closely tracked stock benchmarks, reaching intraday lows during US morning followed by partial rebound. The yield on 10-year Treasuries fell three basis points to 3.08 percent, while the two-year note yield eased three basis points to 2.81 percent. Germany’s 10-year yield fell four basis points to 0.35 percent.

Europe

Tyler Nugent, Julian Gendels (203) 861-7650 | 10.26.2018

 

FTSE 100 (1.40%) to 6906.09, DAX (1.35%) to 11154.09, CAC40 (1.84%) to 4939.66, STOXX 600 (1.11%) to 351.13

European markers ended lower today, extending the recent sell-off, as telecoms led the w2ay lower, with disappointment over Amazon.com (AMZN) and Alphabet (GOOGL) results overnight a drag on sentiment. In the latest Brexit news, reports suggested that UK PM May has put talks on hold as she struggles to reach consensus. Earnings were in focus again today, with the big heavyweights in Europe, including International Consolidated Airlines Group (IAG LN), LafargeHolcim (LHN SW) BASF (BAS GY), Glencore (GLEN LN), Royal Bank of Scotland (RBS LN) Total (FP FP) and ENI (ENI IM) reporting. Barclays (BARC LN) ended lower, despite the High Court ruling that the Serious Fraud Office cannot reinstate charges over matters which arose in the context of Barclays' capital raisings in 2008. Focus now turns on Monday to the UK Budget, as Chancellor Hammond's statement to the Commons starts shortly after 14:30GMT.

Canada

Tyler Nugent, Julian Gendels (203) 861-7650 | 10.26.2018

 

In Canada, the S&P/TSX fell 37 bps where volumes were in line with the twenty day average. Canadian stocks were mostly lower in early trading. U.S. stocks renewed their sell-off as disappointing reports from technology bellwethers marred sentiment at the end of a tumultuous week. The S&P/TSX Composite Index fell about 0.3 percent, with consumer discretionary stocks, tech and energy leading the decline. The Canadian cannabis industry is still wrestling with sky-high demand in the second week of legalization, with growers expressing frustration at the length of time it’s taking to get licensed as shelves sit empty. Canada became the first major economy to legalize recreational cannabis on Oct. 17, taking the lead in a global market that’s expected to reach $32 billion in consumer spending by 2022, according to Arcview Market Research and BDS Analytics. Aecon Group Inc. gained 6.5 percent as third-quarter earnings beat estimates. Goldcorp Inc. rose 6.3 percent after an upgrade to outperform at BMO, which said the sell-off from Thursday’s report was overdone. Winpak Ltd. fell 5.8 percent one day after reporting lower-than-expected sales Thursday. New Gold Inc. gained 4.8 percent.

South America

Tyler Nugent, Julian Gendels (203) 861-7650 | 10.26.2018

 

Mexico: In Mexico, the Mexbol index fell over 100 bps where volumes were 50% higher than the twenty day average. All sectors finished in the red today with materials sliding just 95 bps while consumer discretionary underperformed sliding 193 bps. The Trump administration plans to send at least 800 additional troops to the U.S.-Mexico border as the president increasingly focuses attention on illegal immigration ahead of congressional elections next month, said a person familiar with the deliberations. Brazil: In Brazil, the Bovespa index climed 170 bps where volumes were 28 bps higher than the twenty day average. all but two sectors finished in the green with energy climbing nearly 400 bps while health care underperformed sliding 265 bps. Banco do Brasil SA, the nation’s biggest bank by assets, announced Chief Executive Officer Paulo Caffarelli is leaving as of November 1, the first major departure in Brazil’s state-owned companies ahead of Sunday’s presidential election. President Michel Temer appointed Marcelo Augusto Dutra Labuto to replace him.

Asia

Julian Gendels, Tyler Nugent (203) 861-7650 | 10.26.2018

 

Nikkei (0.40%), Hang Seng (1.11%), Shanghai Composite (0.19%)

Asian stock markets were mostly lower on Friday in choppy trade, with some of the markets drifting into negative territory after opening higher following the overnight rebound on Wall Street. Disappointing third-quarter sales figures from Alphabet and Amazon.com after the NY close again raised concerns about the outlook for corporate earnings and dampened investor sentiment sending U.S. futures lower.  Japanese stocks fell with the Nikkei 225 index lower by 0.4% following a volatile session as telecommunications and technology group dragged stocks lower. Shares of Canon fell 5.6% after posting weak Q3 earnings results and full year outlook.  Chinese gauges were also weak as the Hang Seng lost 1.1% and the Shanghai Composite slipped 0.2%. Technology was the leading laggard with shares of Sunny Optical off nearly 10% following a downgrade @ JEFF.  Australia’s ASX 200 index managed to trade little changed after stocks spiked higher on the close. Gains in mining and financials helped pare losses in telecommunications and energy related stocks.  Stocks in Taiwan ended modestly weaker, off 30bps as major chipmaker TSMC managed to rally 0.7% after INTC reported better than expected Q3 results and Q4 guidance amid a surprising rise in PC demand.  Meanwhile, So Korea’s Kospi index sank 1.8% despite a 3.6% rally in major chipmaker SK Hynix as consumer goods and services and industrial related shares lagged the most.  Volumes in the region were mostly higher, climbing 10% to 15% in Japan and Taiwan while advancing 40% in Korea and Australia.  Turnover in Hong Kong bucked the regional trend, falling 15%. 


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