Market Wrap: Stocks, Bonds, Commodities
On Monday, the major U.S. indexes closed mixed.
The S&P 500 dipped 5 points (-0.07%) to 7,403, and the Nasdaq 100 fell 130 points (-0.45%) to 28,994.
The Dow Jones closed 159 points higher (+0.32%) at 49,686.
The U.S. 10-year Treasury yield ran up to a one-year high of 4.631% before easing to 4.585%.
Semiconductor stocks continued to retreat, with Nvidia (NVDA) dropping 1.33%, Broadcom (AVGO) down 1.05%, Micron (MU) down 5.95%, and Applied Materials (AMAT) down 5.28%.
Also, Sandisk (SNDK) slid 5.30%, Seagate Technology (STX) lost 6.87%, and Western Digital (WDC) was down 4.84%.
Energy stocks outperformed the market on rising oil prices, with Exxon Mobil (XOM) rising 1.63%, Chevron (CVX) up 2.63%, and APA Corp (APA) up 3.00%.
Dominion Energy (D) surged 9.44%, while NextEra Energy (NEE) closed 4.63% lower. NextEra Energy announced its acquisition of Dominion Energy in a 66.8-billion-dollar deal that would create the largest electric utility company in the U.S.
ServiceNow (NOW) jumped 8.78%. Bank of America reinstated coverage of the enterprise software maker with a "buy" rating and a price target of 130 dollars.
European stocks advanced further, with the DAX 40 gaining 1.49%, the CAC 40 up 0.44%, and the FTSE 100 up 1.26%.
U.S. WTI crude futures for July delivery settled 3.36 dollars higher (+3.33%) at 104.38 dollars a barrel, but eased to 102.47 dollars a barrel in early Asian trading hours on Tuesday.
U.S. President Donald Trump said he was holding off on a planned military attack on Iran scheduled for Tuesday.
Gold was up 20 dollars to 4,587 dollars an ounce.
Market Wrap: Forex
The U.S. dollar pared some of its recent gains against other major currencies, with the dollar index slipping to 98.95.
EUR/USD added 33 pips to 1.1658, and GBP/USD climbed 112 pips to 1.3433.
USD/JPY edged up 7 pips to 158.83.
AUD/USD climbed to 0.7175, while USD/CHF slipped to 0.7839 and USD/CAD edged lower to 1.3735.
Bitcoin dropped past the level of 77,000 dollars.
Morning Trading
In Asian trading hours, USD/JPY climbed to 158.97. Japan’s gross domestic product grew at an annualized rate of 2.1% in the first quarter, faster than expected.
Meanwhile, AUD/USD retreated to 0.7140. Australia's Westpac consumer confidence index rose to 83 in May, above 79.2 expected.
EUR/USD eased to 1.1642 and GBP/USD fell to 1.3413.
Gold dropped to 4,548 dollars.
Bitcoin remained subdued at 76,685 dollars.
Expected Today
The eurozone's trade surplus for March is estimated at 35 billion euros.
U.K. jobless rate for the January-March period is expected to stay at 4.9%.
In the U.S., pending home sales are anticipated to be up 1.8% month-on-month in April.
Canada's inflation rate is estimated to accelerate to 3.0% year-on-year in April.
Source : Trading Central