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Quantamize Afternoon Market Update March 15

Mar 15, 2018

US Midday Review US equities are mixed midday. News headlines include the Senate’s decision to reform the Dodd-Frank act, as well as weekly jobless claims coming in a touch below estimates (226k vs 228k estimates) for the third time in four weeks.

The S&P 500 is flat, edging up +0.1%. Industrials +0.69% are the top performer, as auto & parts stocks advance. Healthcare +0.50% outperformed as well led by a rise in pharmaceutical stocks. The tech service and networking industries pushed technology stocks 0.49% higher.

The Russell 2000 is down 0.32% in today’s trading, with small-cap stocks underperforming the broader market. Energy -1.42%, healthcare -0.77%, and consumer discretionary -0.7% are trading lower. Financials are flat, advancing 0.01%. It is the only sector to post positive returns in the Russell 2000.

S&P Energy Laggards

  • KMI -5.97%
  • BHGE -2.78%
  • COG -2.23%
S&P Utilities Laggards
  • D -2.37%
  • CNP -1.29%
  • DUK -0.79%
S&P Materials Laggards
  • MON -4.03%
  • CF -3.18%
  • ALB -2.16%
S&P Industrials Movers
  • CAT +1.71%
  • FDX +1.64%
  • GE +1.54%
S&P Healthcare Movers
  • UNH +2.34%
  • MRK +1.55%
  • JNJ +1.31%
S&P Technology Movers
  • AVGO +2.77%
  • LRCX +1.45%
  • V +1.32%

Rates & Commodities Recap

The long end of the US Treasury curve is slightly negative, while investors have been selling the front end with the 2-Year Yield at 2.283% from 2.257% this morning. A major headline today is a focus on President Trump potential actions aimed at China Intellectual Property theft which was delivered in a speech to CNBC by National Trade Council Director Peter Navarro. Mexico’s Economy Minister Guajardo said today that Canada & Mexico can make a NAFTA deal without the United States. The USD$ is stronger against most major currency pairs on the day with the USD$ Index up 25bps on the day. The strength of the USD$ today is being attributed to NEC Head Larry Kudlow coming out saying “buy King Dollar and sell gold” last night on CNBC. Precious metals are trading down on the day. Base metals are following the negative sentiment of precious metals, with the exception of copper and lead. The International Energy Agency released its Oil Market Report today, highlighting “Demand is expected to increase by 1.5 mb/d in 2018 to 99.3 mb/d, a 0.1 mb/d upward revision compared to last month's forecast” and WTI Crude Oil is trading higher up 60bps on the day.

EU Midday Review

European equities traded modestly higher today. News from the region was light with headlines including UK officials heading to Brussels this weekend to secure a Brexit transition deal with the EU. Russian officials have promised regulatory measures against the UK following recent political incidents.

The Euro Stoxx 600 index was up slightly, rising 0.17%. Insurance +0.7%, basic resources +0.33%, and tech +0.25% were the best performers, while real estate -0.44% and media -0.4% underperformed.

Regional markets were higher across the board with the FTSE 100 +0.02%, DAX +0.42%, CAC40 +0.25% all advancing on the day.

EU Laggards

  • SS -1.61%
  • SW -1.5%
  • LN -1.1%
EU Movers
  • IM +3.4%
  • RU +3.1%
  • LN +1.8%