CURRENCY MARKET WRAP 

As of Mon 20 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.30%, 97.61
USDJPY, -0.01%, $110.14
EURUSD, -0.41%, $1.1091
GBPUSD, -0.53%, $1.3010
USDCAD, +0.18%, $1.3065
AUDUSD, -0.36%, $0.6874
NZDUSD, -0.39%, $0.6614

U.S. Total housing starts surged 16.9% m/m in December to a seasonally adjusted annual rate of 1.608 million (consensus 1.380 million), driven by an 11.2% increase in single-family starts and a 30% increase in multi-unit starts. Building permits, meanwhile, declined 3.9% m/m to 1.416 million (consensus 1.460 million), with single-family permits down 0.5%.

Industrial production declined 0.3% in December (consensus +0.1%), pressured by a 5.6% decline in utilities output that stemmed from unseasonably warm weather. The capacity utilization rate fell to 77.0% from an upwardly revised 77.4% (from 77.3%) in November. The preliminary reading of the University of Michigan’s Index of Consumer Sentiment for January declined to 99.1 (consensus 98.9) from 99.3 in November.

China’s economy grew by 6.1% in 2019, the lowest annual growth rate for 29 years, the National Bureau of Statistics announced on Friday. However, despite falling to a new low since 1990, when political turmoil drove economic growth down to 3.9%, the 6.1% rate met the target range of between 6.0% and 6.5% set by the central government at the beginning of last year, but was below the market expectation of 6.2%. The headline figure was in line with forecasts of the International Monetary Fund and the World Bank for China’s economic growth this year.

U.S. Treasuries finished mixed amid some curve-steepening activity. The 2-yr yield declined one basis point to 1.56%, while the 10-yr yield increased three basis points to 1.84%. The U.S. Dollar Index increased 0.3% to 97.61. WTI crude increased 0.1% to $58.55/bbl.

STOCK MARKET WRAP 

S&P500, +0.39%, 3,329.62
Nasdaq, +0.34%, 9,388.94
Nikkei Futures, +0.38%, 24,030.0

Nine of the 11 S&P 500 sectors finished in the green. The communication services (+0.9%) and utilities (+0.8%) sectors outperformed, while the energy sector (-0.7%) underperformed.

The industrials sector (unch) also included its fair share of laggards. Boeing (BA 324.15, -7.85, -2.4%) extended losses on a report of another software issue, and several transportation stocks fell after issuing relatively disappointing earnings results and/or guidance.

Expeditors International (EXPD 76.82, -4.52, -5.6%), J.B. Hunt (JBHT 114.68, -5.08, -4.2%), and CSX (CSX 76.40, -0.34, -0.4%) let investors down, while KC Southern (KSU 166.52, +4.89, +3.0%) shareholders were able to look past its earnings miss.

Separately, Alphabet (GOOG 1480.39, +28.69, +2.0%) and Apple (AAPL 318.73, +3.49, +1.1%) benefited from a pair of positive analyst recommendations. UBS raised its GOOG price target to $1675 from $1460. Morgan Stanley raised its AAPL price target to $368 from $296.

CURRENCY MARKET WRAP 

As of Fri 17 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.08%, 97.30
USDJPY, +0.27%, $110.18
EURUSD, -0.12%, $1.1137
GBPUSD, +0.29%, $1.3076
USDCAD, -0.03%, $1.3038
AUDUSD, -0.06%, $0.6899
NZDUSD, +0.29%, $0.6637

U.S. Retail sales increased 0.3% m/m in December following an upwardly revised 0.3% increase (from 0.2%) in November. Retail sales, excluding autos, jumped 0.7% (consensus +0.5%) after a downwardly revised unchanged reading (from 0.1%) in November.

U.S. Initial claims for the week ending January 11 dropped by 10,000 to 204,000 (consensus 217,000). Continuing claims for the week ending January 4 decreased by 37,000 to 1.767 million.

U.S. Import prices for December were up 0.3%. Excluding fuel, they were flat. Export prices were down 0.2%. Excluding agricultural products, they were down 0.1%. The Philadelphia Fed Index for January jumped to 17.0 (consensus 3.0) from the revised 2.4 reading in December (from 0.3).

U.S. Treasuries finished on a lower note amid the risk-on mindset in equities. The 2-yr yield increased two basis points to 1.57%, and the 10-yr yield increased two basis points to 1.81%. The U.S. Dollar Index increased 0.08% to 97.30. WTI crude rose 1.1%, or $0.62, to $58.48/bbl.

STOCK MARKET WRAP 

S&P500, +0.84%, 3,316.81
Nasdaq, +1.06%, 9,357.13
Nikkei Futures, +0.72%, 24,082.5

It was a day replete with good news that helped extend the market’s bullish momentum and, in turn, bolster risk sentiment. Morgan Stanley (MS 56.44, +3.50, +6.6%) provided strong earnings results, retail sales increased 0.3% in December as expected, weekly jobless claims continued to reverse a modestly rising uptrend, and the USMCA deal was passed in the Senate.

All 11 S&P 500 sectors started and finished in the green, with the broader market rallying into the close. The information technology sector (+1.4%) provided the leadership amid strength in its top-weighted components and the semiconductor stocks, which got a boost from the positive earnings results from Taiwan Semiconductor (TSM 58.75, +0.36, +0.6%).

Charles Schwab (SCHW 49.00, +1.88, +4.0%) beat earnings estimates, Signet Jewelers (SIG 30.13, +8.64, +40.2%) provided upbeat holiday sales results and comparable sales guidance, Spirit Airlines (SAVE 42.65, +2.97, +7.5%) provided upside unit revenue guidance, and XPO Logistics (XPO 95.35, +12.53, +15.1%) said it may sell or spin-off some of its business units.

Notable laggards included BNY Mellon (BK 46.72, -3.97, -7.8%), Tesla (TSLA 513.49, -5.01, -1.0%), PPG Industries (PPG 127.41, -3.33, -2.6%). BNY missed revenue estimates, Tesla was downgraded to Underweight from Equal-Weight at Morgan Stanley, and PPG issued disappointing quarterly results and guidance.

CURRENCY MARKET WRAP 

As of Thu 16 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, -0.17%, 97.21
USDJPY, +0.08%, $109.89
EURUSD, +0.20%, $1.1150
GBPUSD, +0.18%, $1.3041
USDCAD, -0.15%, $1.3043
AUDUSD, +0.04%, $0.6904
NZDUSD, +0.02%, $0.6617

U.S. PPI for final demand increased 0.1% (consensus +0.2%) and so did the PPI for final demand, excluding food and energy (consensus +0.2%). Those changes left the yr/yr increases at 1.3% and 1.1%, respectively, versus 1.1% and 1.3% in November. The Empire State Manufacturing Survey for January increased to 4.8 (consensus 2.8) from the prior month’s reading of 3.5.

U.S. and China signed Phase One of Trade Deal. The pause in the trade war gives Trump something concrete to offer farmers, a crucial element of his Midwestern firewall, heading into the 2020 election. Under the agreement, China has promised to buy an additional $12.5 billion in US agricultural products in year one, and then $19.5 billion in year two. Those commitments come atop roughly $24 billion in farm purchases that China made in 2017, before the trade war started. In exchange, the United States agreed to reduce tariffs on $120 billion in Chinese products from 15% to 7.5%. The lack of new details wasn’t supportive for further risk appetite, as the news was mostly priced in.

U.S. Treasuries ended the session on a higher note as part of a defensive-oriented trade. The 2-yr yield and the 10-yr yield declined three basis points each to 1.55% and 1.79%, respectively. The U.S. Dollar Index declined 0.2% to 97.21. WTI crude declined 0.8%, or $0.44, to $57.86/bbl.

STOCK MARKET WRAP 

S&P500, +0.19%, 3,289.30
Nasdaq, +0.08%, 9,258.70
Nikkei Futures, +0.18%, 23,957.5

The defensive-oriented S&P 500 utilities (+1.4%), health care (+0.9%), real estate (+0.8%), and consumer staples (+0.7%) sectors were the best-performing sectors. Conversely, the energy (-0.7%), financials (-0.6%), and consumer discretionary (-0.3%) sectors finished in the red.

The financials sector was pressured by a modest decline in Treasury yields and by the negative reactions to earnings results from Bank of America (BAC 34.67, -0.65, -1.8%), U.S. Bancorp (USB 54.97, -1.62, -2.9%), and Goldman Sachs (GS 245.21, -0.45, -0.2%). BlackRock (BLK 530.26, +11.94, +2.3%) pleased investors with its results.

Target (TGT 117.00, -8.26, -6.6%) reported relatively disappointing holiday sales results due to softer-than-expected performance in categories such as electronics, toys, and portions of its home businesses.

The Philadelphia Semiconductor Index fell 1.2% amid some profit-taking interest, with shares of Taiwan Semi (TSM 58.39, -1.93, -3.2%) pulling back from record territory in front of its earnings report tomorrow morning.

CURRENCY MARKET WRAP 

As of Wed 15 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.05%, 97.39
USDJPY, -0.08%, $109.85
EURUSD, -0.06%, $1.1128
GBPUSD, +0.24%, $1.3022
USDCAD, +0.09%, $1.3068
AUDUSD, -0.12%, $0.6895
NZDUSD, -0.36%, $0.6607

U.S. CPI for December brought good news in relative terms, as there weren’t any overshoots compared to expectations. Total CPI was up 0.2% m/m, as expected, while core CPI, which excludes food and energy, was up a softer-than-expected 0.1% (consensus +0.2%). Core CPI has been up 2.3% yr/yr for three straight months, so the inflation rate isn’t running away from the Fed, which seems to have adopted a willingness to let inflation run above its longer-run goal for a bit before moving on rates; moreover, the CPI data takes a backseat to the PCE price data as the Fed’s preferred inflation gauge, and the latest report showed core-PCE inflation up just 1.6% yr/yr.

In Washington, Lawyers for Michael Flynn, Trump’s former national security adviser, on Tuesday said in a court filing that he would seek to withdraw his guilty plea in former Special Counsel Robert Mueller’s investigation. Flynn pleaded guilty in late 2017 to lying to the FBI about interactions with Russia’s ambassador to the United States in the weeks before Trump took office but has since argued that his rights were violated.

U.S. Treasuries finished the quiet session on a mostly higher note. The 2-yr yield was unchanged at 1.58%, and the 10-yr yield declined three basis points to 1.82%. The U.S. Dollar Index finished flat at 97.39. WTI crude increased 0.3%, or $0.18, to $58.30/bbl.

STOCK MARKET WRAP 

S&P500, -0.15%, 3,283.15
Nasdaq, -0.24%, 9,251.33
Nikkei Futures, -0.24%, 23,897.5

The day began with JPMorgan Chase (JPM 138.80, +1.60, +1.2%), Citigroup (C 81.91, +1.26, +1.6%), and Delta Air Lines (DAL 61.45, +1.96, +3.3%) providing investors with better-than-expected earnings results, while Wells Fargo (WFC 49.32, -2.79, -5.4%) missed top and bottom-line estimates due to higher expenses.

The results contributed to noticeable price changes in the stocks, but the price action in the broader market was relatively tight-ranged amid some buyer exhaustion. At its high, the S&P 500 was up just 0.2%, and it was down just 0.3% after Bloomberg reported that existing tariffs on Chinese imports will remain for at least ten months.

From a sector standpoint, the S&P 500 information technology (-0.6%) and real estate (-0.5%) sectors were laggards, while the health care (+0.5%) and utilities (+0.3%) sectors finished with modest gains. Apple (AAPL 312.68, -4.28, -1.4%) weighed on the tech sector after shares were downgraded to Underweight from Neutral at Atlantic Equities.

In other corporate news, Boston Scientific (BSX 42.66, -2.81, -6.2%) issued downside revenue guidance. A recent study indicated that Walt Disney’s (DIS 145.20, +1.32, +0.9%) streaming app may have been downloaded more than 40 million times. Visa (V 196.05, +0.72, +0.4%) agreed to acquire Plaid for $5.3 billion.

CURRENCY MARKET WRAP 

As of Tue 14 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.02%, 97.38
USDJPY, +0.42%, $110.01
EURUSD, +0.16%, $1.1135
GBPUSD, -0.44%, $1.2987
USDCAD, -0.08%, $1.3056
AUDUSD, -0.04%, $0.6898
NZDUSD, -0.18%, $0.6625

Monday’s economic data was limited to the Treasury Budget for December, which showed a deficit of $13.3 billion (consensus -$15.0 billion) versus a deficit of $13.5 billion in the same period a year ago. The budget deficit over the last 12 months is $1.022 trillion versus $1.022 trillion in November.

Yesterday’s good risk appetite could be attributed to several factors: 1) the positive price action buoying sentiment, 2) expectations that the upcoming earnings season will include reassuring guidance, 3) news the U.S. will remove China from its currency manipulator list, thereby improving trade relations and possibly economic growth prospects, and 4) little negative news to derail sentiment.

U.S. Treasury Department on Monday dropped its designation of China as a currency manipulator days before top officials were due to sign a preliminary trade agreement. In its latest currency report, the Treasury said that as part of the Phase 1 trade deal, China had made “enforceable commitments to refrain from competitive devaluation” and agreed to publish relevant data on exchange rates and external balances.

U.S. Treasuries finished slightly lower in a tight-ranged session. The 2-yr yield and the 10-yr yield increased two basis points each to 1.58% and 1.85%, respectively. The U.S. Dollar Index finished flat at 97.38. WTI crude fell 1.5%, or $0.87, to $58.12/bbl.

STOCK MARKET WRAP 

S&P500, +0.70%, 3,288.13
Nasdaq, +1.04%, 9,273.93
Nikkei Futures, +1.01%, 23,955.0

Ten of the 11 S&P 500 sectors pushed higher, with leadership coming from the materials (+1.4%), information technology (+1.3%), and real estate (+1.2%) sectors. Apple (AAPL 316.96, +6.63, +2.1%) remained an influential force after its price target was raised to $375 from $300 at D.A. Davidson.

High-growth stocks remained in favor, too, particularly Tesla (TSLA 524.86, +46.71, +9.8%), lululemon athletica (LULU 245.18, +10.34, +4.4%), and Beyond Meat (BYND 114.34, +18.27, +19.0%). Tesla had its price target raised to $612 from $385 at Oppenheimer. Lululemon raised its Q4 EPS, revenue, and comparable sales guidance.

The health care sector (-0.4%) was the lone holdout amid disappointing guidance from Abiomed (ABMD 168.10, -20.96, -11.1%), weakness in the insurance stocks after Senator Bernie Sanders (I-VT) took the lead in the latest poll in Iowa, and a relatively quiet first day at the JPMorgan Healthcare Conference.

CURRENCY MARKET WRAP 

As of Mon 13 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, -0.09%, 97.36
USDJPY, -0.05%, $109.47
EURUSD, +0.14%, $1.1122
GBPUSD, -0.05%, $1.3061
USDCAD, -0.03%, $1.3052
AUDUSD, +0.66%, $0.6903
NZDUSD, +0.24%, $0.6631

December nonfarm payrolls increased by 145,000 (consensus 160,000), private sector payrolls increased by 139,000 (consensus 157,000), the unemployment rate was 3.5% (consensus 3.5%), and average hourly earnings were up 0.1% (consensus +0.3%). The key takeaway from the report, which included updates to the seasonal adjustment factors for the labor force series derived from the household survey, was that average hourly earnings and the average workweek were both weaker than expected. That may temper any inflation concerns, but at the same time it is apt to temper consumer spending activity and overall GDP growth expectations for the fourth quarter.

Wholesale inventories decreased 0.1% m/m in November (consensus +0.2%) after increasing 0.1% in October. Wholesale sales surged 1.5% after declining 0.9% in October.

U.S. Treasuries ended the session on a higher note as part of a defensive-oriented trade. The 2-yr yield declined one basis point to 1.56%, and the 10-yr yield declined three basis points to 1.83%. The U.S. Dollar Index declined 0.09% to 97.36. WTI crude fell 0.9%, or $0.55, to $58.99/bbl.

STOCK MARKET WRAP 

S&P500, -0.29%, 3,265.35
Nasdaq, -0.27%, 9,178.86
Nikkei Futures, +0.42%, 23,800.0

Stock market hit new highs on Friday but succumbed to profit taking late in the session, as the December employment report failed to generate much excitement. In turn, the momentum that carried the market to record highs gradually transitioned to overdue selling, as cyclical sectors led the decline and selling picked up into the close. The S&P 500 financials (-0.8%), industrials (-0.7%), energy (-0.6%), and consumer discretionary (-0.5%) sectors were today’s laggards. The defensive-oriented real estate (+1.0%), utilities (+0.2%), and health care (+0.04%) sector finished higher.

Boeing (BA 329.92, -6.42, -1.9%) shares were pressured after disparaging employee memos about the 737 MAX situation were released. On a related, Boeing supplier Spirit Aerosystems (SPR 69.70, -3.09, -4.3%) said it will eliminate 2,800 jobs.

Six Flags (SIX 35.96, -7.80, -17.8%), KB Home (KBH 35.86, -1.20, -3.2%), and GrubHub (GRUB 52.38, -3.35, -6.0%) were other negative story stocks after providing disappointing updates. Six Flags issued downside Q4 guidance, KB Home missed revenue estimates, and GrubHub denied reports that it was seeking a sale.

In M&A activity, Dermira (DERM 19.16, +0.82, +4.5%) agreed to be acquired by Eli Lilly (LLY 138.00, +2.08, +1.5%) for $18.75 per share or $1.1 billion in cash.

CURRENCY MARKET WRAP 

As of Fri 10 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.12%, 97.42
USDJPY, +0.33%, $109.50
EURUSD, +0.04%, $1.1109
GBPUSD, -0.22%, $1.3069
USDCAD, +0.19%, $1.3063
AUDUSD, -0.18%, $0.6854
NZDUSD, -0.62%, $0.6607

U.S. Initial jobless claims for the week ending January 4 decreased by 9,000 to 214,000 (consensus 225,000). Continuing claims for the week ending December 28 increased by 75,000 to 1.803 million.

The ease in tensions with Iran remained conducive for risk sentiment, even as Trump and Canadian Prime Minister Trudeau echoed a Newsweek report that Iranian missiles shot down the Boeing (BA 336.34, +4.97, +1.5%) 737-800 jetliner earlier this week. There was no indication the U.S. would reconsider its de-escalation strategy, though.

Other positive factors included 1) upbeat holiday sales results, 2) several analyst upgrades, 3) weekly jobless claims returning to lower levels, and 4) China confirming Vice Premier Liu He will visit Washington from Jan. 13-15 to sign the Phase One trade deal.

U.S. Treasuries finished the session slightly higher. The 2-yr yield declined one basis point to 1.57%, and the 10-yr yield declined two basis points to 1.86%. The U.S. Dollar Index increased 0.12% to 97.42. WTI crude declined 0.1% to $59.54/bbl.

STOCK MARKET WRAP 

S&P500, +0.67%, 3,274.70
Nasdaq, +0.81%, 9,203.43
Nikkei Futures, +2.54%, 23,737.5

Apple (AAPL 309.63, +6.44, +2.1%) led the information technology sector (+1.1%) higher after Reuters reported that iPhone sales increased 18% yr/yr in China last month. Costco (COST 299.42, +4.73, +1.6%) led the consumer staples sector (+0.7%) higher after it reported 9.0% yr/yr comparable sales growth for the five weeks ended Jan. 5.

Advanced Micro Devices (AMD 48.97, +1.14, +2.4%), Goldman Sachs (GS 242.60, +4.84, +2.0%), and Coca-Cola (KO 55.34, +0.99, +1.8%) were among today’s stocks that were upgraded to the equivalent of a Buy rating.

CURRENCY MARKET WRAP

As of Thu 9 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.32%, 97.31
USDJPY, +0.55%, $109.04
EURUSD, -0.36%, $1.1113
GBPUSD, -0.15%, $1.3105
USDCAD, +0.24%, $1.3037
AUDUSD, +0.07%, $0.6876
NZDUSD, +0.18%, $0.6654

S&P 500 (+0.49%) set a new high on Wednesday, as investors were relieved to hear that the situation in Iran may not escalate militarily beyond the actions taken by Iran last night. Iran fired more than a dozen ballistic missiles against U.S. and coalition forces in Iraq, which immediately sent equity futures down more than 1.5%. The reaction was short-lived upon details that it resulted in no American casualties and Tehran said it did not seek escalation or war. Trump told the nation in a press conference that he will be imposing additional sanctions on Iran, implicating that economic countermeasures will be favored over military ones.

U.S. ADP Employment Change Report showed an estimated 202,000 positions were added to private sector payrolls in December (consensus 155,000) on top of an upwardly revised 124,000 (from 67,000) in November.

U.S. Treasuries declined alongside the advance in equities, driving yields higher across the curve. The 2-yr yield rose four basis points to 1.58%, and the 10-yr yield rose five basis points to 1.87%. The U.S. Dollar Index increased 0.32% to 97.31. Gold futures fell 0.9% to $1560.50/ozt.

STOCK MARKET WRAP 

S&P500, +0.49%, 3,253.05
Nasdaq, +0.67%, 9,129.24
Nikkei Futures, +0.22%, 23,532.5

The information technology (+1.0%) and communication services (+0.7%) sectors outperformed, while the energy sector (-1.7%) fell behind amid a retreat in oil prices ($59.62, -3.06, -4.9%). WTI crude futures dropped below $60/bbl following bearish inventory data and receding concerns about production disruptions.

Stock laggards included Boeing (BA 331.37, -5.91, -1.8%) after a 737-800 jetliner crashed shortly after takeoff in Tehran, killing all 176 passengers on board, and Walgreens Boots Alliance (WBA 55.83, -3.46, -5.8%) after it missed earnings estimates.

Positive corporate news came out of Macy’s (M 18.10, +0.43, +2.4%), which reported better than feared holiday sales, and Constellation Brands (STZ 190.29, +6.69, +3.6%), which beat top and bottom-line estimates.

CURRENCY MARKET WRAP 

As of Wed 8 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.32%, 96.98
USDJPY, +0.09%, $108.47
EURUSD, -0.41%, $1.1149
GBPUSD, -0.40%, $1.3117
USDCAD, +0.29%, $1.3002
AUDUSD, -1.02%, $0.6870
NZDUSD, -0.46%, $0.6642

U.S. ISM Non-Manufacturing Index for December registered a 55.0% reading (consensus 54.3%), up from 53.9% in November and the fastest pace since August 2019. Factory Orders declined 0.7% m/m in November (consensus -0.8%) following a downwardly revised 0.2% increase (from 0.3%) in October. Shipments were up 0.3% following a 0.1% increase in October. The trade deficit narrowed to $43.1 billion in November (consensus -$43.5 billion) from an upwardly revised $46.9 billion (from -$47.2 bln) in October.

Iran stepped up its retaliatory threats against the U.S., but the lack of follow-through reassured investors that the situation currently presents little threat to the U.S. economy. Similarly, a pullback in oil prices ($62.68/bbl, -0.58, -0.9%) reflected skepticism that the situation would meaningfully disrupt production.

U.S. Treasuries finished the tight-ranged session little changed. The 2-yr yield remained at 1.54%, the 10-yr yield increased two basis points to 1.83%. The U.S. Dollar Index increased 0.32% to 96.98.

STOCK MARKET WRAP 

S&P500, -0.28%, 3,237.18
Nasdaq, -0.03%, 9,068.58
Nikkei Futures, +0.97%, 23,325.0

Within the stock market, all 11 S&P 500 sectors still finished lower in a lackluster session. The real estate sector (-1.2%) was today’s weakest performer, followed by the consumer staples (-0.7%) and financials (-0.7%) sectors. A fade into the close pushed the communication services (-0.04%), information technology (-0.1%), and industrials (-0.1%) sectors into negative territory.

Semiconductor stocks were among today’s strongest performers after Microchip (MCHP 110.69, +6.96, +6.7%) raised its Q3 revenue guidance and Micron (MU 58.27, +4.71, +8.8%) was upgraded to Outperform from Market Perform at Cowen. The Philadelphia Semiconductor Index rose 1.8%.

Other notable gainers included Apache (APA 32.51, +6.87, +26.8%) after it announced a significant oil discovery off the shore of Suriname and Tesla (TSLA 469.06, +17.52, +3.9%) after it officially opened its Gigafactory 3 in Shanghai.

CURRENCY MARKET WRAP 

As of Tue 7 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, -0.25%, 96.62
USDJPY, +0.41%, $108.42
EURUSD, +0.30%, $1.1195
GBPUSD, +0.72%, $1.3171
USDCAD, -0.21%, $1.2962
AUDUSD, -0.09%, $0.6938
NZDUSD, +0.21%, $0.6668

Rhetoric heated up between the U.S. and Iran over the weekend following Friday’s deadly airstrike, but investors viewed the current geopolitical angst as mostly inconsequential for the economy and the earnings prospects of U.S. companies. Supporting this view was the rebound in stocks, the fade in oil prices ($63.26, +0.23, +0.4%), and the sharp reversal in the CBOE Volatility Index (13.89, -0.13, -0.9%).

U.S. Treasuries finished the session on a lower note, as investors bought the dip in equities. The 2-yr yield increased three basis points to 1.54%, and the 10-yr yield increased two basis points to 1.81%. The U.S. Dollar Index declined 0.25% to 96.62.

STOCK MARKET WRAP 

S&P500, +0.35%, 3,246.28
Nasdaq, +0.56%, 9,071.47
Nikkei Futures, +0.14%, 23,287.5

The S&P 500 communication services sector (+1.2%) was today’s sector leader, largely due to the 2.5% gain in shares of Alphabet (GOOG 1394.21, +33.55) after the stock was upgraded to Buy from Hold at Pivotal Research Group.

Fellow tech giants Facebook (FB 212.60, +3.93, +1.9%), Amazon (AMZN 1902.88, +27.91, +1.5%), and Apple (AAPL 299.80, +2.37, +0.8%) also provided influential support for the broader market.

Conversely, the S&P 500 materials (-0.5%), financials (-0.1%), and industrials (-0.03%) sectors finished with modest losses, while the Philadelphia Semiconductor Index (-1.0%) succumbed to some profit-taking interest.

Separately, shares of Salesforce (CRM 173.45, +7.28, +4.4%) hit a new all-time high after the stock was upgraded to Top Pick from Outperform at RBC Capital Mkts. Shares of CrowdStrike (CRWD 55.11, +4.36, +8.6%) climbed nearly 9% as part of a cyber-security play against possible hacking threats from Iran.