Asia Morning: US Stocks Dragged By US-China Tensions, Jobless Claims
Ming Lam May 21, 2020 9:12 PM
On Thursday U.S. stocks closed lower, dragged by renewed tensions between the U.S. and China...
On Thursday U.S. stocks closed lower, dragged by renewed tensions between the U.S. and China. While reiterating his disappointment with China's response to the coronavirus crisis, U.S. President Donald Trump claimed China was behind a disinformation and propaganda attack on the U.S. and Europe.
Sentiment was also dampened by an official report that over two million Americans applied for unemployment benefits.
The Dow Jones Industrial Average fell 101 points (-0.4%) to 24474, the S&P 500 dropped 23 points (-0.8%) to 2948, and the Nasdaq 100 was down 107 points (-1.1%) to 9378.
Source: GAIN Capital, TradingView
Semiconductors & Semiconductor Equipment (-2.53%), Energy (-1.48%) and Software & Services (-1.27%) sectors lost the most.
National Oilwell Varco (NOV -6.77%), DXC Technology (DXC -6.65%), Boston Scientific (BSX -6.43%) and Take-Two Interactive Software (TTWO -5.89%) were top losers. Meanwhile, L Brands (LB +18.25%), Gap (GPS +11.58) and Norwegian Cruise Line (NCLH +9.78%) gained the most.
On the technical side, about 35.0% (30.0% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 73.1% (61.2% in the prior session) were above their 20-day moving average.
The U.S. Labor Department reported that Initial Jobless Claims declined to 2.438 million (2.400 million expected) in the week ended May 16 while Continuing Claims surged to 25.073 million in the week ended May 9 (24.250 million expected),
U.S. Existing Home Sales decreased to an annualized rate of 4.33 million units in April (4.22 million units expected). The Markit U.S. Manufacturing Purchasing Mangers' Index (preliminary reading) rose to 39.8 in May (40.0 expected). The Conference Board Leading Index fell 4.4% on month in April (-5.4% expected).
European stocks eased, with the Stoxx Europe 600 Index dropping 0.8%. Germany's DAX lost 1.4%, the U.K.'s FTSE 100 declined 0.9% and France's CAC was down 1.2%.
U.S. Treasury prices advanced further, as the benchmark 10-year Treasury yield slipped to 0.667% from 0.679%.
Spot gold price shed $21 (-1.2%) to $1,725 an ounce.
U.S. WTI crude oil futures (July) marked a day-high of $34.66 before retreating to close at $33.64, up 0.5% on day.
On the forex front, the ICE U.S. Dollar Index rebounded 0.2% on day to 99.42, snapping four-day decline. Federal Reserve Vice Chairman Richard Clarida said "additional support from both monetary and fiscal policies may be called for", while Treasury Secretary Steven Mnuchin said another fiscal package is likely to be needed to support the economy.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.