The Daily Call

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

Daily Market Recap

Tyler Nugent, Julian Gendels (203) 861-7650 | 6.21.2018

 
Component
Close
Change
% Change
YTD Chg
Component
Close
Change
% Change
YTD Chg
DJIA
24,461.70
-196.10
-0.80%
-1.0%
Energy
543.84
-10.68
-1.93%
2.0%
S&P 500
2,749.76
-17.56
-0.63%
2.8%
REIT
1,133.30
6.34
0.56%
-2.1%
NASDAQ Comp
7,712.95
-68.56
-0.88%
11.7%
Materials
361.61
-3.63
-0.99%
-4.6%
Russell 2000
1,689.18
-17.81
-1.04%
10.0%
Industrials
608.67
-7.31
-1.19%
-4.6%
 
 
 
 
 
Consumer Disc
525.95
0.38
0.07%
-10.5%
 
 
 
 
 
Consumer Stap
888.02
-6.30
-0.70%
13.1%
Nikkei
22,693.04
137.61
0.61%
-0.3%
Health Care
979.24
-5.24
-0.53%
2.4%
DAX
12,511.91
-183.25
-1.44%
-3.1%
Financials
452.23
-0.85
-0.19%
-2.5%
FTSE 100
7,556.44
-70.96
-0.93%
-1.7%
Info Tech
1,250.71
-10.13
-0.80%
13.1%
Hang Seng
29,296.05
-400.12
-1.35%
-2.1%
Telecom
144.62
-0.26
-0.18%
-12.9%
 
 
 
 
 
Utilities
255.63
0.85
0.33%
-4.4%
VIX
14.61
1.82
14.23%
32.3%
NYSE BTK
4,922.76
-95.51
-1.90%
16.6%
 
 
 
 
 
Crude
65.73
0.39
0.60%
8.8%
 
 
 
 
 
Natural Gas
2.98
0.01
0.47%
0.9%
Market Volume
6,829.11
-
-
-
Gasoline
200.96
-0.84
-0.42%
11.7%
Market Value
333,090.09
-
-
-
 
 
 
 
 
 
 
 
 
 
Gold
1,267.32
-0.54
-0.43%
-2.7%
USD Spot Index
94.81
-0.31
-0.33%
2.9%
Silver
16.31
0.03
0.18%
-3.7%
Euro Spot Index
1.16
0.00
0.34%
-3.3%
Copper
302.85
-0.90
-0.32%
-8.2%
Dollar / Yen
109.98
-0.38
-0.34%
2.5%
10 Yr Yield
2.90
-0.04
-1.25%
2.9%

 

US Equities

Tyler Nugent, Julian Gendels (203) 861-7650 | 6.21.2018

 

Today, the Dow Jones fell 80 bps, the S&P 500 underperformed sliding 63 bps and the Nasdaq fell 88 bps where volumes were 5% higher than the twenty day average. Sectors were relatively mixed with real estate climbing 62 bps while energy underperformed sliding 193 bps. Today’s market moving headlines was a ruling out of Washington where the US Supreme Court said states and local governments can force online shoppers to pay sales tax. The Decision overturned a 1992 ruling (Quill Corp v. North Dakota) that for states to require that an online retailer collect state sales taxes, retailer must have a physical presence in the state. Amazon.com (AMZN -1%), Wayfair (W -1%), Etsy Inc (ETSY -2%) and Overstock.com (OSTK -5%) were all head negatively upon these headlines. Headlines heading into Friday’s OPEC meeting are volatile although most believe that there has been an agreement to increase production after Iran said it could support a modest bump via better compliance on quotas from OPEC members that had over delivered on cuts. In terms of economic news, Philadelphia Fed manufacturing index slipped to 19.9 level for June, below consensus for 28.4 and well below May’s 34.4 reading. Initial jobless claims came in at 218k, below consensus. April’s FHFA house-price index was up 0.1% month over month and up 6.4% year over year. In other news, Intel (INTC -2%) announced resignation of CEO Brian Krzanich, who had led the chipmaker since May of 2013. Darden Restaurants (DRI +15%) reported fiscal fourth quarter results where earnings beat and revenues in line. Web.com (WEB +10%) agreed to be acquired by Siris Capital Group for $25/shr in a cash deal. Kroger (KR +9%) reported first quarter results where earnings, revenues and OM beat. Lumentum (LITE +3%) upgraded to buy from neutral at Goldman Sachs. Micron Technologies (MU +2.5%) reported fiscal third quarter results where EPS slightly ahead and guided fourth quarter revenues in line. Supervalue (SVU +2%) entered into an agreement with Instacart to expand company’s digital capabilities. Methode Electronics (MEI -8%) reported fourth quarter results where guidance missed. ARRIS (ARRS -5%) was downgraded to sell from buy at Goldman Sachs. Barnes & Noble (BKS -4%) reported fiscal fourth quarter results that missed estimates. AMC Networks (AMCX -4%) was downgraded to underperform from market perform at Bernstein.

What To Expect Tomorrow Friday 6/22:

Economic Calendar: 

•      9:45 AM EST Markit US Manufacturing PMI, June-P, Markit US Services PMI, June-P, US Composite PMI, June-P

•      1:00 PM EST Baker Hughes Weekly Rig Count

Earnings Calendar:

•      Earnings Before the Open: KMX

Other Key Events:

•      OPEC meeting kicks off and continues over the weekend

Weeden & Co. Top Advertisements:

    • FOX: 1,900,000 shares
    • INFI: 1,025,000 shares
    • S: 300,000 shares
    • EEM: 285,000 shares
    • AUY: 270,000  shares

Bonds

Tyler Nugent, Julian Gendels (203) 861-7650 | 6.21.2018

 

Treasuries caught an early risk-off bid as stocks were pressured lower by technology sector names, while Daimler AG’s profit warning dented sentiment. The dollar slid, which pressured USD/JPY and further underpinned Treasuries, which ended near session highs shortly after settlement. The yield on 10-year Treasuries declined five basis points to 2.89 percent. Britain’s 10-year yield slipped two basis points to 1.28 percent. Italy’s 10-year yield rose 18 basis points to 2.72 percent, a one-week high.

Europe

Tyler Nugent, Julian Gendels (203) 861-7650 | 6.21.2018

 

FTSE 100 (0.93%) to 7556.44, DAX (1.44%) to 12511.91, CAC40 (1.05%) to 5316.01, STOXX 600 (0.90%) to 380.85

European markets closed mostly lower today, as stocks quickly gave up initial modest gains. Just Greece +0.9% and Denmark +0.6% bucked the lower trend.  Economic data was broadly constructive except for Eurozone June preliminary consumer confidence. The appointment of Eurosceptic's to head two Italian parliamentary committees weighed on the Italian markets, as it's bonds lead the underperformance of peripheral markets vs Bunds. UK PM May and NATO chief Stoltenberg are due to hold a joint press conference this afternoon, and BOE's Carney is due to deliver a speech at Lord Mayor’s Bankers and Merchants Dinner in London, with UK Chancellor Hammond expected to say that the government intends to reach deals outside of the single market that will make the UK a gateway to financial markets, in his speech at the same event. Tomorrow is the second (and final) day of the Bundesbank and Banque de France organize a joint conference on Monetary Policy Changes, the last day of the latest OPEC meeting as well as ECOFIN meeting. Autos weighed in Germany again, after Daimler cut its forecast blaming the current trade spat. French business and manufacturing climate data was constructive.

Canada

Tyler Nugent, Julian Gendels (203) 861-7650 | 6.21.2018

 

In Canada, the S&P/TSX fell 57 bps today where volumes were 15% higher than the twenty day average. Sectors were mixed while health care outperformed climbing 273 bps while energy underperformed sliding 167 bps. The Canadian dollar declines for the 6th day in a row, slipping to a 1-year low in early trading Thursday. Canadian wholesale sales rose 0.1% m/m to C$63.1B in April, according to Statistics Canada; Bloomberg survey estimate was +0.3%. Wholesale sales rise in 3 of 7 subsectors, representing 54% of total. President Trump says Wisconsin Gov. Scott Walker raised the issue of tariffs on dairy exports to Canada in a conversation, and "there may be a little bit of pain."

South America

Tyler Nugent, Julian Gendels (203) 861-7650 | 6.21.2018

 

Mexico: In Mexico, the Mexbol index fell over 60 bps where volumes were 2% higher than the twenty day average. All but one sector finished in the red with consumer staples climbing 69 bps while consumer discretionary underperformed sliding 313 bps. Mexico increased borrowing costs for the second time this year as higher U.S. interest rates, global trade tensions and the July 1 presidential election have battered the country’s peso, posing a risk to inflation. Policy makers, led by bank Governor Alejandro Diaz de Leon raised the key interest rate a quarter-point to 7.75 percent, matching the forecast of 18 of 25 economists surveyed by Bloomberg. Six analysts expected no change in policy while one saw a half-point hike. Brazil: In Brazil, the Bovespa index fell 274 bps where volumes were down 30% from the twenty day average. All sectors finished in the red with consumer staples sliding 143 bps while energy was today’s worst performer sliding 542 bps.  Brazil’s inflation accelerated more than expected in the month through mid-June as a weaker currency and a massive trucker strike drove food and fuel prices higher. The IPCA-15 index rose 1.11 percent from the previous month, the fastest pace for mid-June in at least 20 years and well above the 0.14 percent increase recorded in mid-May. The result was higher than all but one forecast from 40 economists, whose median estimate was for a 1 percent increase.

 

Asia

Julian Gendels, Tyler Nugent (203) 861-7650 | 6.21.2018

 

Nikkei +0.61%, Hang Seng (1.35%), Shanghai Composite (1.37%)

Asian markets ended mixed on Thursday as trade concerns continued to weigh on sentiment.  Japan’s Nikkei 225 added 0.6% while Australia’s ASX 200 index rose 1%.  Chinese gauges including Hong Kong’s Hang Seng and China’s Shanghai Composite index tumbled 1.35% each.  Korea’s Kospi Index lost 1.1% while Taiwan’s Taiex index rose a modest 0.1%.  Japanese stocks rallied amid stronger telecommunications, consumer discretionary and industrials while financials and utilities lagged the most.  Technology also improved amid solid gains in U.S. peers with the Nasdaq Composite closing at an overnight record. Chipmakers Sumco Corp and Japan Material rallied 2.1% and 4%, respectively while TDK Corp jumped 3.3%.  Stocks in Hong Kong fell as energy, technology and telecommunication weakened the most while defensive groups including healthcare, staples and utilities outperformed on a relative basis.  Shares of major tech co. Sunny Optical slumped 8.2% after analysts raised concerns about its profit margins. Shares fell despite a rally in Taiwan peer Largan Precision, up 2% and touch panel maker TPK Holdings, up1.1%. Taiwan chipmakers ended mixed as shares of TSMC rose a modest 0.2% and rival shares of United Microelectronics sank 2.2%.  Stocks down under firmed as banking and materials related cos. outpaced declines in telecommunications.  Shares of healthcare services provider Ramsay Health tumbled 7.5% after the co. lowered its FY’18 earnings guidance and flagged a write down of its U.K. operations.   Korean stocks suffered sharp declines at the hands of weaker financials and technology. Shares of LG Electronics and LG Display sank 3.3% to 4.9% while Hana Financial and KB Financial declined more than 4% apiece.  Major automakers also weakened as Hyundai Motor and affiliate Kia Motors dropped 1.9% and 2.2%, respectively.  Market volumes were mixed in the region as turnover improved 10% to 30% in Hong Kong and Australia while slipping 10% to 20% in Taiwan and Korea. Participation was seen little changed in Japan. 


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