Asia Morning: U.S. Stocks Mixed, Dow Eases 1%

Wall Street sign with a building in background
On Tuesday, U.S. stocks closed mixed. The Nasdaq 100 marked another record close at 9967 (+65 points or 0.7%), while the Dow Jones Industrial Average retreated 300 points (-1.1%) to 27272, and the S&P 500 fell 25 points (-0.8%) to 3207. 


Source: GAIN Capital, TradingView

Technology Hardware & Equipment (+1.93%), Retailing (+1.14%) and Media (+0.48%) sectors were the best performers, while Automobiles & Components (-5.26%), Energy (-3.59%) and Capital Goods (-2.6%) sectors lost the most.

Apple (AAPL +3.16%) and Amazon.com (AMZN +3.04%) closed at record highs.  

On the technical side, about 68.8% (60.6% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 94.7% (92.7% in the prior session) were above their 20-day moving average.

Regarding U.S. economic data front, the National Federation of Independent Business's Small Business Optimism Index rose to 94.4 in May (92.5 expected), and Wholesale Inventories (final reading) grew 0.3% on month in April (+0.4% expected).

Later today, U.S. Consumer Price Index (flat in May expected) will be reported. The Federal Reserve is expected to keep its key interest rates unchanged.

European stocks got deeper in negative territory, with the Stoxx Europe 600 Index losing 1.2%. Both Germany's DAX and France's CAC fell 1.6%, and the U.K.'s FTSE 100 shed 2.1%.

U.S. Treasury prices rebounded further, as the benchmark 10-year Treasury yield declined to 0.829% from 0.883% Monday.

Spot gold price was up for a second day as it added $16.00 (+1.0%) to $1,714 an ounce.

Oil prices pared early losses to settle higher. The U.S. Energy Information Administration raised its 2020 oil price forecasts while lowering its projection for U.S. oil production. U.S. WTI crude oil futures (July) climbed 2.0% to $38.94 a barrel.

On the forex front, the ICE U.S. Dollar Index slipped 0.2% on day to 96.39.

EUR/USD climbed 0.4% to 1.1335. Official data showed that the eurozone's first quarter GDP posted -3.1% on year (-3.2% on year expected). On the other hand, German exports declined 24.0% on month in April (-15.6% expected) and imports dropped 16.5% (-16.0% expected).

GBP/USD fell 0.1% to 1.2717, snapping an eight-day rally.

USD/JPY slid 0.6% to 107.78. This morning, government data showed that Japan's core machine orders dropped 12.0% on month in April (-7.0% expected).

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