Asia Morning: U.S. Stocks Lose Steam
Ming Lam July 29, 2020 2:20 AM
And investors exercised caution following mixed quarterly results from large firms...
On Tuesday, U.S. stocks ended in the red. The Dow Jones Industrial Average fell 205 points (-0.77%) to 26379, the S&P 500 dropped 21 points (-0.65%) to 3218, and the Nasdaq 100 lost 141 points (-1.33%) to 10532.
Dow Jones Industrial Average: Daily Chart
Source: GAIN Capital, TradingView
Market sentiment was dampened by ongoing political negotiations concerning a new $1 trillion coronavirus stimulus bill proposed by Senate Republicans. And investors exercised caution following mixed quarterly results from large firms.
Materials (-2.18%), Technology Hardware & Equipment (-1.84%) and Energy (-1.75%) sectors performed the worst.
Lamb Weston (LW -11.46%), National Oilwell Varco (NOV -11.01%) and F5 Networks (FFIV -8.77%) were top losers. Meanwhile, McDonald's (MCD -2.49%) and 3M Company (MMM -4.85%) declined after releasing earnings.
On the technical side, about 55.0% (55.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 75.4% (76.2% in the prior session) were trading above their 20-day moving average.
Regarding U.S. economic data, the Richmond Federal Reserve Manufacturing Index jumped to 10 in July (5 expected). The Conference Board's Consumer Confidence Index declined to 92.6 in July (95.0 expected).
Reports on Wholesale Inventories (June preliminary reading -0.5% on month expected) and Pending Homes Sales (June annualized rate +15.0% on month expected).
European stocks closed mixed. The Stoxx Europe 600 Index rebounded 0.42%, the U.K.'s FTSE 100 gained 0.40%, while France's CAC 40 declined 0.22%, and Germany's DAX 30 ended flat for a second day.
The benchmark U.S. 10-year Treasury yield declined to 0.582% from 0.609% Monday.
Spot gold price marked another record close at $1,958 an ounce after retreating from an intraday high at $1,962. Spot silver price swung down to $22.30 an ounce before settling at $24.42, down 0.7%.
U.S. WTI crude oil futures (September) reversed course to the downside falling 1.4% to $41.04 a barrel.
On the forex front, the U.S. dollar showed signs of stabilization after its recent plunge, as traders widely regarded the decline as overdone. The ICE U.S. Dollar Index added 0.1% to 93.73 halting a seven-session losing streak. Later today, the Federal Reserve is expected to keep its benchmark interest rates unchanged at 0.00%-0.25%.
EUR/USD lost steam after marking the highest level since September 2018, as it declined 0.3% to 1.1715.
GBP/USD advanced 0.4% to 1.2931, extending its winning streak to an eighth session.
USD/JPY dropped 0.3% to test the support at the 105.00 key level.
Meanwhile, AUD/USD managed to edge up 0.1% to 0.7157.
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.