Morning Call For Thursday, Dec. 13

Notable Russell 1000 earnings reports today include: Adobe (consensus $1.88), Costco (1.62).

U.S. IPO's scheduled to price today: 360 Finance (QFIN), Legacy Housing Corp (LEGH).

Equity conferences during the remainder of this week: none.

Market Comments

Dec S&P 500 E-minis (ESZ18 -0.02%) this morning are down -2.75 points (-0.10%). Wednesday's closes: S&P 500 +0.54%, Dow Jones +0.64%, Nasdaq 100 +0.89%. The S&P 500 on Wednesday closed higher on carry-over support from a sharp rally in European stocks after UK Prime Minister May survived a party leadership vote. Stocks were also boosted by optimism about the outlook for U.S.-China trade after the CFO of Huawei Technologies was granted bail in Canada and as President Trump said he would consider intervening in the case if it helps get a trade deal with China.

Mar 10-year T-notes (ZNH19 +0-015) this morning are up +2 ticks. Wednesday's closes: TYH9 -6.00, FVH9 -3.00. Mar 10-year T-notes on Wednesday closed lower on the sharp rally in stocks that reduced safe-haven demand for T-notes, and on weak demand for the Treasury's $24 billion auction of 10-year T-notes that had a 2.35 bid-to-cover ratio, below the 12-auction average of 2.51.

The dollar index (DXY00 -0.07%) this morning is down -0.064 (-0.07%), EUR/USD (^EURUSD +0.10%) is up +0.0010 (+0.09%), and USD/JPY (^USDJPY +0.14%) is up +0.15 (+0.13%). Wednesday's closes: Dollar Index +0.254 (+0.26%), EUR/USD +0.0052 (+0.46%), USD/JPY -0.09 (-0.08%). The dollar index on Wednesday closed lower on strength in GBP/USD which rose +1.14% after UK Prime Minister May survived a party leadership vote in Parliament. There was also strength in EUR/USD after Eurozone Oct industrial production rose +0.2% m/m, stronger than expectations of +0.1% m/m.

Metals prices this morning are mixed with Feb gold (GCG19 -0.24%) -3.7 (-0.30%), Mar silver (SIH19 -0.44%) -0.071 (-0.48%), and Mar copper (HGH19 +0.51%) +0.013 (+0.45%) at a 1-week high. Wednesday's closes: Feb Comex gold (GCG19) on Wednesday closed up +2.8 (+0.22%) and Mar Comex silver (SIH19) closed up +0.223 (+1.52%). Metals prices moved higher Wednesday due to a weaker dollar. Gold prices also have support from the recent stock market volatility that has boosted demand for gold as a store of wealth as long gold positions in ETFs rose to a 4-1/4 month high Tuesday. Mar silver posted a 1-month high Wednesday on optimism for the U.S.-China trade outlook after the CFO of Huawei Technologies was granted bail in Canada and President Trump said he would consider intervening in the case if it helps get a trade deal with China. A slightly stronger-than-expected Eurozone Oct industrial production report of +0.2% m/m (vs expectations of +0.1% m/m) on Wednesday also gave silver prices a lift on signs of stronger demand for industrial metals.

View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.