Asia Morning: Dow Jumps 2% as Earnings Season Starts
Ming Lam, George Lam July 14, 2020 9:18 PM
On Tuesday, U.S. stocks were broadly higher at close, as the Dow Jones Industrial Average jumped 556 points (+2.13%) to 26642 posting a three-session rally...
On Tuesday, U.S. stocks were broadly higher at close, as the Dow Jones Industrial Average jumped 556 points (+2.13%) to 26642 posting a three-session rally. The S&P 500 gained 42 points (+1.34%) to 3197, and the Nasdaq 100 rebounded 87 points (+0.82%) to 10689.
Dow Jones Industrial Average: Daily Chart
Source: GAIN Capital, TradingView
Energy (+3.61%), Automobiles & Components (+3.35%) and Materials (+2.54%) sectors performed the best. Noble Energy (NBL +10.73%), Apache Corp (APA +7.87%), Exxon Mobil (XOM +3.31%), Hanesbrands (HBI +9.51%), Ford Motor (F +4.95%) and Caterpillar (CAT +4.83%) were among top gainers.
Big U.S. banks were kicking off a new season of releasing earnings results. Wells Fargo (WFC -4.57%) and Citigroup (C -3.93%) shares closed lower.
On the technical side, about 42.6% (42.0% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 47.7% (50.1% in the prior session) were trading above their 20-day moving average.
U.S. official data showed that Consumer Prices rose 0.6% on month in June (+0.5% expected, -0.1% in May).
European stocks were broadly lower. The Stoxx Europe 600 Index fell 0.84%. Germany's DAX 30 dropped 0.80%, France's CAC 40 lost 0.96%, while the U.K.'s FTSE 100 was little changed.
U.S. government bond prices stabilized, as the benchmark 10-year Treasury yield settled lower at 0.617%.
Spot gold price added $6.00 (+0.4%) to $1,809 an ounce.
U.S. WTI crude oil futures (August) gained 0.5% to $40.29 a barrel.
On the forex front, the ICE U.S. Dollar Index dropped 0.4% on day to a five-week low of 96.19.
EUR/USD advanced 0.6% to 1.1408. Official data showed that the eurozone's industrial production increased 12.4% on month in May (+15.0% expected), while the German ZEW Current Situation Index edged up to -80.9 in July (-65.0 expected) from -83.1 in June.
GBP/USD gained 0.1% to 1.2571. Official data showed that U.K. GDP grew 1.8% on month in May (+5.5% expected) and industrial production rose 6.0% (+6.5% expected). Meanwhile, CPI data for June will be released later in the day (+0.4% on year expected).
USD/JPY was little changed at 107.26. Later today, The Bank of Japan is expected to hold its benchmark rate at -0.10%.
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