CURRENCY MARKET WRAP
As of Mon Nov 11th, Singapore Time zone UTC+8
U.S. Dollar Index, +0.21%, 98.35
USDJPY, -0.04%, $109.24
EURUSD, -0.28%, $1.1019
GBPUSD, -0.32%, $1.2773
USDCAD, +0.44%, $1.3228
AUDUSD, -0.54%, $0.6861
NZDUSD, -0.58%, $0.6329
U.S. University of Michigan Consumer Sentiment Index for November crossed at 95.7 (consensus 95.0), which was slightly better than expected and roughly even with the final reading of 95.5 for October. Consumer expectations increased from October, underscoring an otherwise confident attitude that should continue to manifest itself in relatively solid consumer spending activity.
Wholesale inventories declined 0.4% m/m in September (consensus -0.1%), on top of a downwardly revised 0.1% increase (from +0.2%) in August. That was the largest decline since October 2017. Wholesale sales were flat in September after declining 0.1% in August.
Trump’s statement refuted China’s claim that an agreement was already made, but the market maintained an optimistic view on trade. It presumably continued to think that a “Phase One” deal will still get signed considering the president didn’t technically rule out the possibility to roll back tariffs and White House trade advisor Peter Navarro said the U.S. might be willing to delay the Dec. 15 tariffs.
The U.S. Treasury market finished relatively unchanged in a quiet session. The 2-yr yield declined one basis point to 1.66%, and the 10-yr yield increased one basis point to 1.93%. The U.S. Dollar Index increased 0.21% to 98.35. WTI crude increased 0.2% (+$0.10) to $57.21/bbl.
STOCK MARKET WRAP
S&P500, +0.26%, 3,093.08
Nasdaq, +0.48%, 8,475.31
Nikkei Futures, +0.48%, 23,472.5
There still wasn’t much conviction from buyers or sellers for most of the session, though, until a wave of buyers pushed the market to session highs into the close. The S&P 500 health care (+0.8%) and information technology (+0.6%) sectors posted decent gains, while the energy (-0.8%), utilities (-0.4%), and real estate (-0.2%) sectors finished lower.
Walt Disney (DIS 137.96, +5.00, +3.8%) beat earnings estimates and shares of the Dow component rose accordingly. Its outperformance also helped the S&P 500 communication services sector (+0.4%) overcome weakness in Verizon (VZ 59.35, -1.18, -2.0%), which fell on no confirmed news catalyst.
The trade-sensitive Philadelphia Semiconductor Index (+0.5%) continued to rise amid the upbeat trade sentiment. The group also benefited from follow-through buying in shares of Qualcomm (QCOM 94.03, +4.05, +4.5%) after it reported positive earnings results earlier in the week.
In other corporate news, Southwest’s (LUV 58.18, -0.06, -0.1%) 10-Q stated it plans to remove Boeing’s (BA 351.00, -6.31, -1.8%) 737 MAX from its flight schedule through March 6, 2020. This is a one-month delay. Gap, Inc. (GPS 16.68, -1.38, -7.6%) announced the departure of its CEO and issued downside EPS guidance.