Asia Morning: US Stocks Rebound After 2-Day Decline
Ming Lam May 14, 2020 9:29 PM
On Thursday U.S. stocks closed in positive territory after two sessions of solid losses...
On Thursday U.S. stocks closed in positive territory after two sessions of solid losses.
The Dow Jones Industrial Average rebounded 377 points (+1.6%) to 23625, the S&P 500 gained 32 points (+1.2%) to 2852, and the Nasdaq 100 was up 94 points (+1.1%) to 9094.
Source: GAIN Capital, TradingView
Banks (+4.1%), Automobiles & Components (+3.9%) and Semiconductors & Semiconductor Equipment (+2.95%) sectors were market leaders.
Cintas Corporation (CTAS +14.7%), Leggett & Platt (LEG +9.8%), Capital One Financial (COF +9.6%), UnitedHealth Group (UNH +4.5%), and Cisco Systems (CSCO +4.5%) were among the top gainers.
On the technical side, about 24.6% (25.8% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 28.7% (44.4% in the prior session) were above their 20-day moving average.
The U.S. Labor Department reported that Initial Jobless Claims amounted to 2.981 million for the week ended May 9 (2.500 million expected). Over 36 million Americans have become unemployed for the past two months due to the coronavirus pandemic.
Import Prices fell 2.6% on month in April (-3.2% expected), the biggest fall in five years.
Later today, investors will focus on Retail Sales (-12.0% on month in April expected), the Empire Manufacturing Index (-60.0 for May expected), Industrial Production (-12.0% on month in April expected), and the University of Michigan's Consumer Sentiment Index (68.0 for May expected).
Meanwhile, heightened tensions between the U.S. and China seem not to be easing in the near future. In an interview with Fox Business Network, U.S. President Donald Trump said he was disappointed with China over its response to the coronavirus crisis, adding that he didn't want to speak to Chinese President Xi Jinping at the moment.
European stocks were broadly lower, with the Stoxx Europe 600 Index falling 2.2%. Germany's DAX dropped 2.0%, France's CAC declined 1.7%, and the U.K.'s FTSE 100 was down 2.8%.
U.S. Treasury prices remained firm, as the benchmark 10-year Treasury yield fell to 0.617% from 0.648% Wednesday.
Spot gold price charged 15 dollars higher (+0.9%) to $1730 an ounce, posting a three-day rally.
Oil prices rebounded, as U.S. WTI crude oil futures (June) jumped 9.0% to $27.56 a barrel, the highest level since April 3.
On the forex front, the ICE U.S. Dollar Index gained 0.1% on day to 100.26. In an interview with Fox Business Network, U.S. President Donald Trump said "it is a great time to have a strong dollar".
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.