Asia Morning: Dow Charges Higher, Tech Stocks Lag Behind

For a second session investors rotate out of technology stocks and into big cyclical ones...

Trading floor 2

On Tuesday, U.S. stocks closed mixed. The Dow Jones Industrial Average advanced a further 262 points (+0.90%) to 29420, while the S&P 500 eased 5 points (-0.14%) to 3545, and the Nasdaq 100 shed another 206 points (-1.74%) to 11624.


Nasdaq 100 Index (Daily Chart) : Caution

Sources: GAIN Capital, TradingView


For a second session investors rotated out of technology stocks and into big cyclical ones. Boeing (BA +5.20%) jumped on expectations that its Max 737 jet would return to the market soon.

Automobiles & Components (+3.48%), Energy (+2.52%) and Food, Beverage & Tobacco (+2.4%) sectors performed the best, while Semiconductors & Semiconductor Equipment (-3.43%), Software & Services (-2.36%) and Retailing (-1.62%) sectors were laggards

TripAdvisor (TRIP +10.41%), Nordstrom (JWN +9.72%) and DR Horton (DHI +9.13%) were top gainers, while Carnival Corp (CCL -13.09%), Norwegian Cruise Line (NCLH -6.46%) and American Airlines (AAL -6.21%) were top losers.

Approximately 82% (72% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 78% (62% in the prior session) were trading above their 20-day moving average.

European stocks remained very firm. The Stoxx Europe 600 rose 0.90%, Germany's DAX climbed 0.51%, France's CAC 40 jumped 1.55%, and the U.K.'s FTSE 100 gained 1.79%.

U.S. Treasury prices softened further, as the benchmark 10-year Treasury yield charged higher to 0.968% from 0.955% Monday.

Spot gold rebounded $11 (+0.62%) to $1,874 an ounce.

U.S. WTI crude futures (December) advanced a further $1.09 (+2.71%) to $41.38 a barrel.

The U.S. dollar was steady against other major currencies, as the ICE Dollar Index edged down to 92.72.


USD/JPY held the key 105.00 level though it dipped to 105.30, while USD/CHF charged 0.29% higher to 0.9154.

GBP/USD surged 0.81% to 1.3272 extending its winning streak to a fourth session. Meanwhile, U.K. official data showed that the jobless rate for July-September climbed to 4.8% (as expected). The British Retail Consortium like-for-like retail sales monitor increased 5.2% on year in October (+6.1% in September). 

EUR/USD was little changed at 1.1814. In Germany, the ZEW Current Situation Survey sank to -64.3 in November (-63.5 expected).  

AUD/USD was broadly flat at 0.7284, while USD/CAD rebounded 0.19% to 1.3033.


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