MARKET WRAP
28 Jan 2020 Market Wrap
As of Wed 29 Jan, Singapore Time zone UTC+8
FX MOVES
U.S. Dollar Index, +0.03%, 97.97 (Sentiment: Neutral)
USDJPY, +0.29%, $109.16 (Sentiment: Neutral)
EURUSD, +0.04%, $1.1022 (Sentiment: Neutral)
GBPUSD, -0.23%, $1.3024 (Sentiment: Neutral)
USDCAD, -0.23%, $1.3163 (Sentiment: Higher)
AUDUSD, +0.02%, $0.6762 (Sentiment: Neutral)
NZDUSD, -0.10%, $0.6543 (Sentiment: Neutral)
MARKET MOVES
S&P500, +1.01%, 3,276.25 (Sentiment: Positive)
Nasdaq, +1.43%, 9,269.68 (Sentiment: Positive)
Nikkei Futures, +0.05%, 23,322.5 (Sentiment: Positive)
MARKET OUTLOOK: As for the coronavirus, there weren’t too many positive developments on the situation, as more cases and deaths were confirmed in China with additional travel restrictions enacted. Investors, however, appeared placated by the fact that it remained under control in the U.S. Any negative impact to earnings growth, thus, might be transitory or minimal. U.S. stocks bounced back on Tuesday, recovering a bulk of yesterday’s losses as investors bought the dip amid waning concerns.
SUMMARY OF NOTABLE EVENTS
U.S. CONFERENCE BOARD’S CONSUMER CONFIDENCE INDEX
The Conference Board’s Consumer Confidence Index rose to 131.6 in January (consensus 128.0) from an upwardly revised 128.2 (from 126.5) in December. The key takeaway from the report is that the survey group remains optimistic about the overall situation, as nearly 41% of respondents described business conditions as good while 49% of respondents believed that jobs are plentiful.
APPLE EARNINGS
Strong iPhone holiday sales deliver record-breaking revenue for Apple. Fiscal first-quarter (FQ1) revenue: $91.8 billion. Analysts expected $88.37 billion. FQ1 earnings per share (EPS): $4.99. Analysts expected $4.55. Fiscal second-quarter guidance (FQ2): $63 billion to $67 billion. Analysts expected $62.33 billion. Shares of Apple, which have increased roughly 8% in the weeks leading up to the announcement of its fiscal first-quarter results, were up around 2% in after-hours trading Tuesday following the earnings results.
U.S. MARKETS
All 11 S&P 500 sectors contributed to the rally, including five that rose at least 1.0%. The information technology sector (+1.9%) led the charge on the back of Apple (AAPL 317.69, +8.74, +2.8%), which was set to release its earnings report after the close. Shares got an added lift on reports Apple asked suppliers to raise iPhone production levels by more than 10% over the last year. U.S. Treasuries gave back some of their recent gains, sending yields modestly higher. The 2-yr yield increased three basis points to 1.46%, and the 10-yr yield increased four basis points to 1.64%. The U.S. Dollar Index finished flat at 97.97. WTI crude rose 0.7%, or $0.39, to $53.40/bbl.