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

Daily Market Recap

Tyler Nugent, Julian Gendels (203) 861-7650 | 4.19.2018

 
Component
Close
Change
% Change
YTD Chg
Component
Close
Change
% Change
YTD Chg
DJIA
24,664.89
-83.18
-0.34%
-0.2%
Energy
544.26
0.76
0.14%
2.0%
S&P 500
2,693.13
-15.51
-0.57%
0.7%
REIT
1,042.12
-15.52
-1.47%
-10.0%
NASDAQ Comp
7,238.06
-57.18
-0.78%
4.8%
Materials
371.51
-4.03
-1.07%
-2.0%
Russell 2000
1,574.91
-8.65
-0.55%
2.6%
Industrials
638.26
-1.86
-0.29%
0.1%
 
 
 
 
 
Consumer Disc
526.75
-17.06
-3.14%
-10.3%
 
 
 
 
 
Consumer Stap
827.99
-3.03
-0.37%
5.4%
Nikkei
22,191.18
32.98
0.15%
-2.5%
Health Care
955.01
-7.79
-0.81%
-0.1%
DAX
12,567.42
-23.41
-0.19%
-2.7%
Financials
462.64
6.95
1.52%
-0.3%
FTSE 100
7,328.92
11.58
0.16%
-4.7%
Info Tech
1,172.42
-13.44
-1.13%
6.0%
Hang Seng
30,708.44
424.19
1.40%
2.6%
Telecom
151.04
-1.20
-0.79%
-9.1%
 
 
 
 
 
Utilities
257.31
-0.21
-0.08%
-3.8%
VIX
16.07
0.47
3.01%
45.6%
NYSE BTK
4,589.47
-72.00
-1.54%
8.7%
 
 
 
 
 
Crude
68.21
-0.54
-0.79%
12.9%
 
 
 
 
 
Natural Gas
2.67
-0.07
-2.70%
-9.6%
Market Volume
6,500.59
-
-
-
Gasoline
207.65
0.25
0.12%
15.4%
Market Value
319,580.22
-
-
-
 
 
 
 
 
 
 
 
 
 
Gold
1,345.81
-3.60
0.55%
3.3%
USD Spot Index
89.86
0.23
0.26%
-2.5%
Silver
17.26
0.07
0.38%
1.9%
Euro Spot Index
1.23
0.00
-0.21%
2.9%
Copper
312.60
-3.55
-0.55%
-5.3%
Dollar / Yen
107.37
0.14
0.13%
5.0%
10 Yr Yield
2.91
0.04
1.29%
2.9%

 

US Equities

Tyler Nugent, Julian Gendels (203) 861-7650 | 4.19.2018

 

US equities lower Thursday following three straight days of gains. The Dow finished down 34pbs, the S&P down 57bps and the Nasdaq down 78bps with volumes about 10% above their two week avgerages.  Consumer staples (tobacco and HPC weakness) and tech (semi weakness) the big decliners. Financials rallied following recent bank sluggishness. Treasuries weaker with the curve steepening. Dollar firmer. Sterling weak on Carney comments Gold finished down 0.3%. WTI crude settled down 0.2%.

Fairly uneventful session, though earnings calendar seemed to be a headwind. However, broader earnings sentiment still seems fairly upbeat. This has been flagged as a recent tailwind for stocks following some pickup in concerns about hawkish trade headlines, nascent dents in the synchronized global growth theme, geopolitical tensions and some heightened political risk in Washington.

Macro and political headlines somewhat mixed. Bloomberg reported late this afternoon Rosenstein told Trump he is not a target in Mueller probe. Trump allies concerned Cohen could flip. Some focus on backup in yields (and recent curve flattening). US economic data (claims and Philly Fed) looked solid following some key upside surprises earlier in the week.

Notable Gainers:

    • AAOI: +11%
    • CRSP +8%:
    • AXP +8%: 

Notable Decliners:

    • PM: -16% 
    • SNBR: -14%
    • UPL: -9%

Weeden Top Advertisements:

    • FG: 935k
    • FCX: 875k
    • ABT: 750k
    • CLF: 590k
    • KKR: 325k

Bonds

Tyler Nugent, Julian Gendels (203) 861-7650 | 4.19.2018

 

Despite weakness across stocks, Treasuries saw heavy downside pressure, following wider gilt losses. U.K. 10Y yields ended cheaper by more than 10bp on the day while UST curve steepened, with 2Y yields little changed on the day.  Further out the curve, 5Y to 30Y yields were cheaper by 2.7bp to 4.2bp shortly after settlement; long-end led losses saw 5s30s steeper by 1.5bp, 2s10s by 3.5bp.  The benchmark 10-year Treasury yield reached 2.93 percent Thursday, within about 2 basis points of the 2018 high touched in February.  The gap between 2- and 10-year Treasuries widened Thursday by about four basis points to 48 basis points. It narrowed to as little as 41 basis points Wednesday, the smallest differential in more than a decade.

Europe

Tyler Nugent, Julian Gendels (203) 861-7650 | 4.19.2018

 

FTSE 100 +0.16% to 7328.92, DAX (0.19%) to 12567.42, CAC40 +0.21% to 5391.64, STOXX 600 +0.02% to 381.93 

European equity markets closed higher with a few exceptions. Today's economic data flow was relatively light with weaker-than expected UK retail sales as the main feature. The corporate front saw numerous earnings/updates such as ABB Limited (ABBN.SW), Debenhams (DEB.LN), Rentokil (RTO.LN) and Publicis Groupe (PUB.LN) to name a few. M&A generated headlines as well as Shire (SHP.LN) rejected Takeda’s bid and Allergan (AGN) confirmed it is considering a bid for the company. Geopolitics were also in focus with China/U.S. trade war concerns in the background. Chinese official told reporters that China is well prepared to handle any negative effects from its trade dispute with the US, and EU Commission is seen supporting the US in trade dispute with China. German Chancellor Merkel and French President Macron met in Berlin with discussions centered on European, bilateral and international issues. Italy closed +0.1% higher, Spain +0.1%, Sweden +0.4%, Portugal +0.3%, Norway +0.2%, Greece +0.8%. Denmark ended (0.4%) lower.

Canada

Tyler Nugent, Julian Gendels (203) 861-7650 | 4.19.2018

 

Canadian stocks fell the most in nearly two weeks as technology shares came under pressure and a rally in oil prices faltered.  The S&P/TSX Composite Index lost 76 points or 0.5 percent to 15,454.42, the first decline in six trading days. Tech stocks were the biggest decliners, losing 1 percent, after Taiwan Semiconductor’s disappointing forecast hit chipmakers. The energy index fell 0.8 percent after earlier rising as much as 0.9 percent as a two-day rally in crude prices faded in afternoon trading.

Canadian Pacific Railway Ltd. lost 1.2 percent ahead of a potential strike this weekend. Kinder Morgan Canada Ltd. fell 3.8 percent. It spent C$196 million on the stalled Trans Mountain pipeline expansion last quarter before putting the plan on hold.

South America

Tyler Nugent, Julian Gendels (203) 861-7650 | 4.19.2018

 

Mexico:  Stocks in Mexico finished lower by 76bps with the Mexbol index closing at 48719.  Financials and utilities were down over 2%, materials were down over 1.5% and Telcos finished up 10bps.  Mexico’s peso, the best-performing currency this year, sank on Thursday after leftist candidate Andres Manuel Lopez Obrador gained ground in a poll and as volatility markets indicate a deeper rout closer to the elections.  The peso fell as much as 2.1 percent on Thursday after a Consulta Mitofsky survey showed Obrador’s leading with 32 percent. Investors are expecting a further dip closer to the July 1 presidential election, even though Obrador has taken some steps this year to reassure investors, such as supporting Nafta, TPP and fiscal discipline.

Brazil:  Brazilian stocks barely finished in the black with the Bovespa index finishing up 6bps to 85824.  Leaders included energy, staples and telcos while tech, financials and discretionary names were the weakest. 

Asia

Julian Gendels, Tyler Nugent (203) 861-7650 | 4.19.2018

 

Nikkei +0.15%, Hang Seng +1.40%, Shanghai Composite +0.84%

Asia equities finished higher Thursday following mostly higher US indexes overnight on a continuation of waning risk aversion (corporate earnings optimism and dissipating Syria/North Korea geopolitical risks). Energy sector strength was a noted theme, largely on the back of crude oil prices. Some focus on bullish Saudi oil price projections seen as a reinforcement of supply cuts. S&P futures eroded earlier gains in the night session. The yen underperformed with the dollar mixed against the majors.

News flow on North Korea dialogue prospects remains encouraging -- at least to the extent that talks with the US are likely to happen. Discussions about what the terms will be have been light until recently. US is seen to target denuclearization in North Korea by 2020. US President Trump said he is prepared to walk away from the summit if they are not fruitful. Comments came at the conclusion of the US-Japan meeting, which yielded no major breakthroughs though was benign enough to offer some market relief in Japan. Elsewhere, disappointing Australian jobs growth reinforced gradual path toward RBA rate hike.


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