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Quantamize End of Day Market Update Apr 4

Apr 04, 2018

US Market Recap

US equities closed broadly higher, extending gains from midday reversing from the sharp declines earlier today. Investor sentiment turned after US and Chinese officials insisted that negotiations were possible before any proposed tariffs were imposed. It was a strong day for the S&P 500 which has now posted its biggest 2-day gain in 5 weeks (+2.42%), while the S&P 500 advance/decline ratio finished at 6.97 (439 advances and 63 declines). The VIX declined to 20.06 (-4.93%) after being up 2.46% at midday, as market uncertainty was mitigated. Technology was one of the best performers today, and the 1.45% increase in the Nasdaq Composite outpaced gains in both the S&P 500 and Russell 2000.

The S&P 500 advanced by 1.16%, and energy (-0.14%) was the only sector in the index with negative returns. The best performers were consumer stocks as consumer discretionary and consumer staples rose by 1.81% and 1.52%, respectively. Technology also offered strong returns today with telecommunications and information technology both rising by over 1.25%. Real estate and financials closed with increases of more than 1%.

Russell 2000 stocks rose by 1.29%. Small-cap consumer stocks performed well, with consumer staples increasing by 2.10% and consumer discretionary advancing by 2.08%. Technology (+1.04%) in the Russell 2000 added to gains from yesterday, as the sector continues to overcome its recent slump. All the sectors in the Russell 2000 finished in positive territory. Energy (+0.48%) was the worst performer, as the sector was a broad market laggard.

Stocks Trending in the News

BOEING (BA) will not be affected as negatively affected by the Chinese tariffs as originally expected. The tariff targets older generations of Boeing’s planes, and newer models are exempt from the tariffs. Boeing shares fell 5.7% at one point but rallied and closed down 1.02%.

FACEBOOK (FB) reported that roughly 87 million people may have had their data shared with Cambridge Analytica. Facebook shares closed down 0.65%.

MACERICH (MAC)’s board of directors are in danger of being replaced by directors nominated by Starboard Value. Macerich shares are up 4.33%.

SONY (6758.JP) will gain nearly $1 billion from its 5.7% stake in SPOTIFY (SPOT). Sony sold 17% of its stake when Spotify shares went live yesterday. Sony’s ADR (SNE) rose 0.23% today, while Spotify shares fell 2.11%.

S&P 500 Gainers

  • LEN +10.09%
  • UAA +6.42%
  • DHI _6.41%
  • PHM +6.35%
S&P 500 Laggards
  • AYI -3.98%
  • IPGP -3.26%
  • DE -2.95%
  • NFX -2.18%
RTY 2000 Gainers
  • PRTA +12.58%
  • OMER +11.03%
  • FOSL +10.36%
  • RYTM +10.24%
RTY 2000 Laggards
  • CLDR -40.24%
  • TITN -8.89%
  • SGH -8.57%
  • SEND -7.50%
Rates & Commodities

US bonds fell today, with yields rising, reversing from today’s open. The 10-Year yield rose to 2.808% from today’s open of 2.753% and the US 30-Year Yield and is at 3.042% from today’s open of 3.001%. The USD$ was slightly lower today, currently at 90.13, down 7ps. The USD$ continued to gain against the JPY (106.82, +18bps). However, the dollar fell by 42bps against the AUD (0.7716). Gold fell slightly from the levels reported in our afternoon update, but still positive for the day. Gold is up 7bps to $1333.73. Silver remained around levels from this afternoon, down 61bps to $16.32. Copper is at the same level as reported during the afternoon update at $6,796 up 122bps. All other metals were lower. WTI Crude oil reversed from earlier levels and ended up 6bps to $63.55.

Cryptocurrencies

Major cryptocurrencies fell today. Bitcoin is trading at USD$ 6,946.31 down 7.29%, Ethereum is trading at USD$ 385.56, down 7.24%, Ripple at USD$ 0.5088 down 6.63%, Bitcoin Cash at $656.33 down 8.00%, and Litecoin at $119.58 down 10.85%. At a conference in South Korea today Ethereum creator, Vitalik Buterin, spoke about the scaling limitations of Ethereum. Buterin made note of the low number of transactions Ethereum can currently process and discussed potential solutions.

EU Market Recap

European equities opened higher, declined sharply by midday, then pared losses towards the close of today’s session, though they still finished mostly lower. Sino-American trade tensions dampened the positive sentiment earlier today which drove equities down, but markets were lifted higher later in the session as the US market reversed its losses. Regional economic data released was in-line with estimates as Eurozone unemployment for February came in at 8.5% (vs 8.5% estimates), as well as CPI for March matching the Y/Y consensus (1.4% vs 1.4% estimated).

The Euro Stoxx 600 finished 0.47% lower and underperformed regional markets. Basic resources (-2.42%) were the worst performer, pushed lower by poor returns in chemicals (-0.99%). Newly proposed Chinese tariffs, though targeted towards the US, include tariffs on chemicals which may be negatively impacting the global sector. Technology (-1.66%) in the EU offered disappointing returns, in sharp contrast to results in US markets.  

Regional markets were mixed with the DAX (-0.37%) and CAC40 (-0.20%) receding, while the FTSE 100 (+0.05%) closed relatively flat.

EU Gainers

  • FPM.LN +11.2%
  • CHEMM.DC +7.5%
  • NDX!GR +7.2%
  • GCCID +8.9%
EU Laggards
  • TPT.LN -13.0%
  • TRG.SM -11.2%
  • AMER.LN -8.1%
  • SBIZ.LN -7.1%