Asia Morning: U.S. Stocks Take a Breather
Ming Lam November 18, 2020 9:17 AM
Meanwhile, the Russell 2000 Index marks another record close...
On Tuesday, U.S. stocks took a breather after a recent strong run. The Dow Jones Industrial Average dropped 167 points (-0.56%) to 29783, the S&P 500 fell 17 points (-0.48%) to 3609, and the Nasdaq 100 was down 35 points (-0.30%) to 11977.
Meanwhile, the Russell 2000 Index gained 6 points (+0.37%) to an all-time high of 1791.
Nasdaq 100 Index (Daily Chart) : Waiting to Break Record
Sources: GAIN Capital, TradingView
U.S. official data showed that retail sales grew 0.3% on month in October, lower than +0.5% expected and +1.6% in September.
Utilities (-2.01%), Food & Staples Retailing (-1.49%) and Health Care Equipment & Services (-1.42%) sectors led the market lower. Retailers Home Depot (HD -2.54%) and Walmart (WMT -2.17%) were lower, while Tesla (TSLA +8.21%) and Boeing Co (BA +3.78%) posted gains.
Pharmacy stocks such as Walgreens Boots Alliance (WBA -9.63%) and CVS Health (CVS -8.62%) fell after Amazon.com (AMZN +0.15%) announced plans to sell prescription drugs in the U.S.
Approximately 90% (87% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 88% (86% in the prior session) were trading above their 20-day moving average.
European stocks were mixed at close. The Stoxx Europe 600 declined 0.24%, Germany's DAX was little changed, France's CAC 40 gained 0.21%, while the U.K.'s FTSE 100 dropped 0.87%.
U.S. Treasury prices increased as stocks slipped from recent record highs. The benchmark U.S. 10-year Treasury yield slid to 0.872% from 0.906% Monday.
Spot gold declined $7 (-0.38%) to $1,881 an ounce.
U.S. WTI crude futures (December) gained $0.11 (+0.27%) to $41.45 a barrel.
The ICE Dollar Index was down for a fourth session falling 0.21% to 92.44.
The Japanese yen and the Swiss franc, widely regarded as safe-haven currencies, received bids as stocks eased from record highs. USD/JPY lost 0.36% to 104.19, and USD/CHF declined 0.15% to 0.9113.
The British pound also gained, boosted by news of progress in the Brexit trade talks. GBP/USD climbed 0.36% to 1.3245.
EUR/USD climbed 0.09% to 1.1862 extending its winning streak to a fourth day.
The Australian dollar gave the worst performance among major currencies. AUD/USD dropped 0.27% to 0.7300 ending a two-day rally.
USD/CAD rebounded 0.24% to 1.3105.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.