CURRENCY MARKET WRAP
As of Fri Nov 15th, Singapore Time zone UTC+8
U.S. Dollar Index, -0.23%, 98.15
USDJPY, -0.30%, $108.50
EURUSD, +0.12%, $1.1020
GBPUSD, +0.24%, $1.2882
USDCAD, -0.02%, $1.3248
AUDUSD, -0.75%, $0.6787
NZDUSD, -0.48%, $0.6381
U.S. Producer Price Index for final demand jumped 0.4% m/m in October (consensus +0.3%) while the index for final demand, less food and energy, rose 0.3% (consensus +0.2%). The yr/yr change for these measures checked in at 1.1% and 1.6%, respectively, versus 1.4% and 2.0% in September. Initial claims increased by 14,000 to 225,000 (consensus 214,000) for the week ending November 9. Continuing claims for the week ending November 2 decreased by 10,000 to 1.683 million
The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined six basis points to 1.82%. The U.S. Dollar Index declined 0.23% to 98.15. Demand for Treasuries may have been driven in part by continued misgivings about a “Phase One” trade agreement, which the U.S. and China are struggling to complete, according to a new report from The Financial Times. The stock market, though, remained undeterred by any negative-sounding trade news that doesn’t come directly from Trump, China, or top negotiators.
Separately, Powell’s final day of testimony on Capitol Hill went largely unnoticed due to it being a reiteration of what the market already knows about monetary policy and the economic outlook.
STOCK MARKET WRAP
S&P500, +0.08%, 3,096.63
Nasdaq, -0.04%, 8,479.02
Nikkei Futures, -0.59%, 23,162.5
S&P 500 (+0.08%) eked out another record close on Thursday despite Cisco Systems (CSCO 44.91, -3.55, -7.3%) dropping more than 7% after it issued downside quarterly guidance. Cisco blamed familiar macro uncertainties like Brexit and trade for its cautious outlook, but investors construed the situation as a company-specific issue. The broader market held steady throughout the morning, until shares of Walmart (WMT 120.65, -0.33, -0.3%), which were up more than 3% on positive earnings results and an upbeat outlook, turned negative.
Apple (AAPL 262.64, -1.83, -0.7%) was downgraded to Sell from Hold at Maxim Group, which may have contributed to a slight pullback in the stock. Kraft Heinz (KHC 30.96, -1.94, -5.9%) was downgraded to Sell from Neutral at Goldman, which dragged the stock lower.