Market Brief: Stocks Shrug Off US-China Trade Deal Hopes
Matt Weller, CFA, CMT November 5, 2019 9:07 PM
*Please note that the post-US session version of the Market Brief report will be on hiatus until next week given upcoming travel.*
View our guide on how to interpret the FX Dashboard.
- Overnight headlines about the US potentially removing the September round of tariffs in order to secure a Phase One trade deal with China boosted risk appetite in early trade, though that optimism had generally faded by the close.
- US data: The ISM Non-Manufacturing PMI report printed at 54.7, above expectations for a 53.5 reading. The Employment component also improved over last month to hit 53.7.
- FX: The Australian dollar was the strongest major currency today, while the safe haven Japanese yen and Swiss franc brought up the rear. In a sign of optimism over a potential US-China trade deal, USD/CNH slipped below 7.00.
- Commodities: Gold shed nearly -2% to trade back below the $1500 level, while oil tacked on more than 1% today.
- US indices closed narrowly mixed on the day after trading higher in the early afternoon.
- Financials (XLF) were the strongest sector on the day; REITs (XLRE) were the weakest.
- Stocks on the move:
- Uber (UBER) shed -10% after announcing another quarterly loss. Analysts have noted that the insiders’ “lock up” periods on selling the stock expire tomorrow, potentially opening the door for another leg lower.
- Peloton (PTON), another recent IPO, fell -8% in the wake of its first earnings report which showed a loss of -$1.29, far below -$0.40 expected.
- Chesapeake Energy (CHK) dropped -18% after reporting worse-than-expected loss and revenue figures.
- Shake Shack (SHAK) announced it would temporarily close some locations for remodeling, dragging the stock down -21% on the day.
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.