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Quantamize Midday Report - March 12

Mar 12, 2018

US equities are mixed midday, with the S&P 500 index -0.10%, with tariff polices, replacements for the NEC head, and a number of M&A deals driving sentiment.

Industrials -1.14%, Energy -0.4%, Financials -0.35%, and Healthcare -0.27% are the biggest laggards. Aerospace/Defense -1.6% is the worst performing industry at midday. Meanwhile, Telecommunications +0.48%, Utilities +0.45%, Real Estate +0.26%, and Consumer Discretionary +0.20% are the outperformers.

S&P 500 technology shares are higher +0.03% midday with Semiconductors +0.8% and Hardware +0.7% as the largest risers, while Services -0.1% and Software -0.1% underperform.

Consumer sector stocks are mixed overall with S&P consumer staples -0.2%, while consumer discretionary shares are up +0.3%. Industries are largely mixed, with Entertainment and Media +0.8% the strongest performer.

US bond yields are down this afternoon as the 10-year is currently at 2.88%, down from 2.90% this morning.  This movement follows the US auction of $158bn in notes this week ranging from 3-months bills to 30-year notes. With notable 3-Year USD $28bn & 10-year USD $21bn auctions today, the bonds priced with the highest yields auctioned since 2007 at 2.436% for the 3-Year & 2.88% for the 10-Year.

The USD$ is slightly down from this morning with the US Dollar index down 1.10%.  Most notably, the USD$/JPY is down -0.30% while the USD$ has reversed its earlier losses against the AUD$. The rally in copper and aluminum has held up and other commodities have extended losses with palladium and WTI down both down 200bps on the day. The downward move in WTI seems to be related to a 320,000-barrel week over week increase from last week in inventories held in Genscape Cushing inventory, however WTI remains above the USD$60/barrel psychological level. A risk off sentiment isn’t quite felt as gold along with other precious metals remain negative on the day despite dollar weakness & a slight rally in bonds.

S&P Top Industrials Laggards

  • BA -2.60%
  • CAT -2.15%
  • UTX -2.05%
S&P Top Energy Laggards
  • RRC -1.91%
  • VLO -1.55%
  • HP -1.55%
S&P Top Financial Laggards
  • CME -1.97
  • AJG -1.35
  • BNY -1.29
S&P Top Telecommunications Returners
  • T +1.13%
  • CTL ++0.95%
S&P Top Utilities Returners
  • PPL +1.63%
  • LNT +1.23 %
  • ES +0.52%
S&P Top Real Estate Returners
  • HCN +1.18%
  • DLR +1.09 %
  • HCP +1.02%

EU markets closed trading higher today with the Euro Stoxx 600 up +0.25%. It was a quiet news day for EU markets, with M&A deals being the largest driver.

Utilities +1.03%, Food & Beverage +0.6%, and Media +0.57% were the top performing industries while Industrial Good -0.16%, Telecommunications -0.09%, and Basic Resources -0.07% led the market lower.

Regional markets were mixed with the Dax +0.58%, CAC40 +0.04% moving up the day, and the FTSE 100 sliding -0.13%.