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.