CURRENCY MARKET WRAP
As of Wed 11 Dec, Singapore Time zone UTC+8
U.S. Dollar Index, -0.05%, 97.609
USDJPY, -0.06%, 108.58
EURUSD, +0.26%, 1.1093
GBPUSD, -0.12%, 1.3130
USDCAD, -0.03%, 1.3234
AUDUSD, -0.18%, 0.6811
NZDUSD, -0.08%, 0.6544
U.S. Nonfarm business sector labor productivity decreased 0.2% in the third quarter (consensus -0.1%), according to the revised estimate, versus a previously reported 0.3% decrease. Unit labor costs increased 2.5% (consensus 3.4%) versus a previously reported 3.6% increase.
According to The Wall Street Journal, a tariff delay would come as negotiators work to ensure China commits to purchasing more U.S. farm goods. A follow-up report from the South China Morning Post indicated that the delay is likely, but NEC Director Kudlow responded that the tariffs are still on the table. Kudlow could not confirm if the tariffs will be delayed.
This unresolved trade front was contrasted with House Speaker Pelosi announcing that a USMCA deal has been reached. Of course, the market has always been more concerned about a U.S.-China trade deal than a USMCA deal, so the latter didn’t provide much enthusiasm in the market. Impeachment talk remained a non-factor.
U.S. Treasuries finished the session mixed. The 2-yr yield increased three basis points to 1.65%, and the 10-yr yield was unchanged at 1.83%. The U.S. Dollar Index declined 0.2% to 97.45. WTI crude increased 0.4%, or $0.24, to $59.21/bbl.
STOCK MARKET WRAP
S&P500, -0.01%, 3,134.12
Nasdaq, +0.06%,8,360.88
Nikkei Futures, -0.09%, 23,410.19
Most S&P 500 sectors wavered near their unchanged marks throughout the session. The real estate (-0.7%) and materials (-0.6%) sectors diverted with relatively larger declines, while the energy (+0.2%) and health care (+0.2%) sectors finished higher.
AutoZone (AZO 1250.00, +81.00, +6.9%) and Stitch Fix (SFIX 26.23, +1.21, +4.8%) outperformed in earnings-driven advances, while Netflix (NFLX 293.12, -9.38, -3.1%) underperformed after it was downgraded to Underperform from Neutral at Needham.