Commodities-Gold-Market Movers-News-Tech

What’s Happening In Financial Markets Today?

Published on March 30, 2017 at 12:09 pm by Insider Monkey Staff in Commodities, Gold, Market Movers, News, Tech

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1. US Stock Market:

U.S. stocks rose on Thursday, with the advance gaining momentum throughout the session as financial shares rallied in response to a positive read on economic growth. The Dow Jones Industrial Average DJIA, +0.20% rose 88 points, or 0.4%, to 20,747. The S&P 500 index SPX, +0.19% added 9 points, or 0.4%, to 2,370. The Nasdaq Composite Index COMP, +0.07% climbed 18 points, or 0.3%, at 5,915. All three saw a lackluster start to trading, posting small moves on the day, but strengthened throughout the morning.

(Market Watch)

“U.S. equities traded higher on Thursday as investors digested some economic data and kept an eye on oil prices. The Dow Jones industrial average rose about 90 points, with Goldman Sachs and UnitedHealth contributing the most gains. The S&P 500 gained 0.36 percent, with financials outperforming. Lifting the sector were bank stocks, as the SPDR S&P Bank ETF (KBE) and the Regional Banking ETF (KRE) popped around 2 percent. Energy stocks were also among the best performers, with the sector rising 0.8 percent, as they received a lift from oil prices. Crude rose 1.31 percent to $50.16 per barrel, building on Wednesday’s gains after better-than-expected inventories data.”

(CNBC)

“U.S. stock index futures were slightly lower on Thursday as investors awaited key economic data, including a final reading on fourth-quarter GDP numbers, and speeches by a host of Federal Reserve officials. The market has been choppy in the past few days as investors look for new catalysts and ahead of first-quarter corporate earnings. Investors have been assessing what the Republicans’ failure to pass a healthcare bill means for tax reform and the rest of President Donald Trump’s pro-growth agenda, hopes for which have helped drive stocks to record highs.”

(Reuters)

Stock Trading, Performance, Stock Analysis

2. US Bond Market:

“U.S. government debt prices erased slight gains on Thursday as investors parsed through key economic data while they awaited remarks from Federal Reserve officials. Initial jobless claims fell by 3,000 to 258,000. Meanwhile, the final read on fourth-quarter GDP showed growth of 2.1 percent, above a preliminary read of 1.9 percent. The yield on the benchmark 10-year Treasury note was higher at around 2.387 percent, while the yield on the 30-year Treasury bond was also higher at 2.994 percent. Yields move inversely to prices.”

(CNBC)

“Managed money also takes account of longer-term returns, particularly the yield on 10-year Treasury notes. Auctions of the 10-year notes are also closely watched by policymakers as the yield theoretically indicates the confidence that investors have in economic growth. The positive correlation normally in evidence between bond prices and equity valuations has broken down on occasions since the global financial crisis due to fears over deflation. However, with deflationary risks supposedly easing fund managers are trying to determine the point at which yields on the 10-year notes render equities expensive or ‘rich’ relative to treasuries.”

(Investors Chronicle)

“We are not sure the yield on the 10-year note has bottomed. It’s off the worst level but hardly back to the pre-Fed high around 2.60% or the high last December at 2.639%. The WSJ says “The 10-year Treasury yield was headed for the first quarterly decline in three quar-ters. It was 2.446% at the end of 2016.” What does it say if Q1 this year ends with a lower yield than the year before? It can mean demand for the safe-haven asset is far higher, or it can mean inflation expecta-tions have fallen sharply, or both.”

(FX Street)

3. FX Markets:

“The U.S. weekly jobless claims for the week ended March 24 and the third estimate of GDP data for the fourth quarter have been released at 8:30 am ET Thursday. The greenback traded mixed against its major rivals after the data. While the greenback rose against the franc, yen and the euro, it changed little against the pound. The greenback was trading at 1.0736 versus the euro, 111.34 against the yen, 0.9965 against the franc and 1.2458 against the pound around 8:31 am ET.”

(RTT News)

“THE dollar edged up to a nine-day high against a basket of currencies on Thursday, with the euro sagging as the European Central Bank showed no sign of stepping away from monetary easing anytime soon. The U.S. currency was up 0.3 percent at 111.385 yen, putting some distance between the four-month low of 110.110 it plumbed on Monday. The euro dipped 0.2 percent to $1.0745, having drifted down from a 4-1/2-month high of $1.0906 scaled on Monday.”

(Express Newspapers)

4. Commodities:

“The price of copper slipped Thursday, surrendering its overnight gains as supply-side problems in Indonesia appeared to be close to ending. Copper prices fell 0.66% to $5,866.00 a metric ton in midmorning London trading. Gold also traded lower, by 0.20% to $1,249.90 a troy ounce, continuing to come off its political risk-driven gains seen earlier in the week.”

(Market Watch)

“Silver prices declined slightly on Thursday, as investors kept an eye on the economic calendar and a string of upcoming speeches from Federal Reserve officials. May silver futures were down 6 cents, or 0.3%, at $18.19 a troy ounce at 7:45 a.m. ET. Prices hovered within a narrow range of $18.14 and $18.26 through the overnight session. The grey metal has gained nearly 4% since last Friday’s close and is on track for its second consecutive weekly advance. Prices have recovered more than 7% since the March 15 low. June gold futures were down $3.90, or 0.3%, at $1,252.50 a troy ounce in early trade. The yellow metal also experienced limited price activity through the morning.”

(Economic Calendar)

“WTI (West Texas Intermediate) crude oil (USO) (UCO) (XLE) futures contracts for May delivery rose 2.4% and settled at $49.51 per barrel on March 29, 2017. Broader markets (SPY) (SPX-INDEX) also rose 0.1% to 235.5 on March 29, 2017. Oil and gas are major parts of the energy sector. The energy sector contributed to ~6.5% of the S&P 500 as of March 24, 2017. US crude oil prices rose to almost a three-week high due to the following factors: short covering from almost a four-month low. Larger-than-expected fall in gasoline and distillate inventories. Less-than-expected fall in US crude oil inventories from March 17–24, 2017. Higher compliance among OPEC producers with major producers’ production cut deal in March 2017—Reuters survey shows 95% and 94% compliance in March 2017 and February 2017 with targeted production cuts. Supply outage in Libya. Possible extension of major producers’ production cut deal.”

(Market Realist)

5. Market Movers:

EOG Resources Inc (NYSE:EOG) is in the spotlight today after William Featherston of UBS upgraded the E&P to ‘Buy’ from ‘Neutral’, with the analyst commenting that the sector weakness in recent weeks is an opportunity for long term investors to buy quality at attractive prices. In addition to upgrading the stock, Featherston also raised his target price to $109 from the previous $105. Like that of other E&P’s, EOG Resources Inc (NYSE:EOG) shares have retraced due to lower WTI prices, which fell from the mid-$50’s to around $49 per barrel today. The price of crude has fallen in the previous sessions due to concern that oil inventories around the world are still high and that there is a chance that OPEC might not extend its production cuts past June. (Insider Monkey)