Market Brief: Stocks Stumble Out of Holiday Food Coma

See a summary of the top market themes and trends from today's US trading session!

View our guide on how to interpret the FX Dashboard.

  • The Trump Administration came out of the Thanksgiving holiday with hawkish comments toward China on trade, with Commerce Secretary Wilbur Ross stating that the US would be happy to raise tariffs in two weeks’ time if no “Phase One” trade deal is agreed. Presidential Counselor Kellyanne Conway later sought to soften the blow, noting that a deal was being “written up.”
  • US data: ISM Manufacturing PMI came in at 48.1, below expectations of 49.2 and last month’s 48.3 reading. Separately, construction spending (Oct) fell -0.8% vs. +0.3% eyed.
  • FX: The New Zealand and Australian dollar were the strongest major currencies on the day; the Canadian dollar was the weakest, leading to a big breakout in NZD/CAD. The greenback was also weak after President Trump resumed criticizing the Federal Reserve.
  • Commodities: Oil gained nearly 1.5% on the day, boosted by reports that Saudi Arabia would push to deepen OPEC output cuts. Gold ticked lower in quiet trade.
  • US indices closed roughly 1% lower and finished at the lows of the day.
  • Consumer Staples (XLP) was the strongest sector on the day while REITs (XLRE) brought up the rear.
  • Stocks on the move:
    • Oil and gas firm Apache Corp. (APA) dumped -12% on mixed results from exploratory drilling in Suriname.
    • Roku (ROKU) shed -15% on the back of a downgrade from Morgan Stanley.

*No major economic data is scheduled for release during Tuesday’s Asian session*

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