CURRENCY MARKET WRAP
As of Mon 23rd Dec, Singapore Time zone UTC+8
U.S. Dollar Index, +0.32%, 97.69
USDJPY, +0.06%, $109.44
EURUSD, -0.40%, $1.1078
GBPUSD, -0.07%, $1.3000
USDCAD, +0.16%, $1.3148
AUDUSD, +0.16%, $0.6897
NZDUSD, -0.08%, $0.6603
U.S. Personal income increased 0.5% m/m in November (consensus 0.3%) following an upwardly revised 0.1% increase (from 0.0%) in October. Personal spending rose 0.4% on the heels of an unrevised 0.3% increase in October. The PCE Price Index increased 0.2%, as expected, and the core PCE Price Index, which excludes food and energy, jumped 0.1% (consensus 0.2%). The third estimate for Q3 GDP was right in-line with the second estimate and consensus estimates, with real GDP up 2.1% and the GDP Price Deflator up 1.8%. The final reading for the University of Michigan Index of Consumer Sentiment was 99.3 (consensus 99.1) versus the preliminary reading of 99.2. The final reading for November was 96.8.
Economic data continued to depict an improving macro environment, with U.S. personal income and spending rising more than expected in November. With few negative developments to alter the market’s positive outlook, then, the bullish trend remained intact heading into the holidays. For good measure, Trump said he had a good talk with President Xi about their trade deal.
U.S. Treasuries finished the session on a lower note, pushing yields modestly higher. The 2-yr yield increased three basis points to 1.63%, and the 10-yr yield increased one basis point to 1.92%. The U.S. Dollar Index advanced 0.32% to 97.69. WTI crude declined 1.5%, or $0.92, to $60.38/bbl.
STOCK MARKET WRAP
S&P500, +0.49%, 3,221.22
Nasdaq, +0.42%, 8,924.95
Nikkei Futures, -0.46%, 23,720.0
Boeing (BA 328.00, -5.50, -1.7%) continued to struggle amid negative news: United Airlines (UAL 89.28, +0.06, +0.1%) extended its 737 MAX cancellations through June 4, and Boeing’s Starliner spacecraft failed a NASA mission.
In pre-holiday earnings news, Nike (NKE 99.96, -1.19, -1.2%) and CarMax (KMX 92.71, -6.08, -6.2%) underwhelmed investors with results, while Carnival (CCL 50.21, +3.56, +7.6%), Blackberry (BB 6.53, +0.72, +12.4%), and Winnebago (WGO 51.91, +3.77, +7.8%) pleased investors.
U.S. Steel (X 11.92, -1.44, -10.8%) didn’t report earnings, but it did issue downside quarterly guidance and cut its dividend to $0.01/share from $0.05/share.