Quantamize End of Day Market Update April 5

Apr 05, 2018
US Market Recap

US markets finished broadly elevated, though they fell from midday levels. US equities seemed poised to advance higher, until investor sentiment turned negative. Sino-American trade tensions, which appeared to be abating, were aggravated when Chinese officials brought their case regarding US trade practices to the World Trade Organization. China is arguing that the proposed US tariffs violate global trading regulations.

The S&P 500 closed 0.69% higher, 0.10% off from midday levels. Most sectors in the S&P 500 finished in positive territory with only healthcare (-0.06%) slipping into the red. Disappointing returns in pharmaceuticals and biotechnology (-0.56%) weighed the sector down. Returns in materials and energy outpaced the market, rising by 1.87% and 1.81%, respectively. Industrials moved 1.0% higher, and consumer discretionary was lifted by strong returns in retail (+1.80%).

The Nasdaq Composite ended today’s session up 0.49%, moving off midday highs. The Dow Jones Industrial followed suit finishing 0.58% higher today but edging 0.05% lower from afternoon trading.

Russell 2000 stocks rose by 0.74%, bucking the trend of late-session declines by major US indices. Energy (+3.12%) was by far the best performer, outgaining the next closest sector, materials, by 1.13%. Consumer stocks were mixed as consumer discretionary increased by a healthy 1.36%, but consumer staples were relatively flat (0.1%). Technology (+0.46%) in the Russell 2000 continued its recent recovery. 

Stocks Trending the News

BLACKSTONE GROUP (BX) raised $7 billion for a rescue-lending fund. Blackstone shares rose 0.1%.

Former JPMorgan executive, Matt Zames, is reportedly being considered to takeover as DEUTSCHE BANK (DBK.GR)’s CEO. Deutsche Bank shares closed 4.41% higher.

E*TRADE (ETFC) senior unsecured debt was upgraded to Baa2 by Moody’s. E*Trade shares rose 1.74%.

In an interview with Bloomberg, FACEBOOK (FB) CEO said a few advertisers have stopped advertising on the service as they wait for Facebook to clear up outstanding questions. Facebook shares rose 2.73%.

The US Energy Department is considering the emergency aid request by FIRSTENERGY (FE) according to President Trump. FirstEnergy Shares are rose 0.47%.

NETAPP (NTAP) gave strong guidance during its analyst day and believes the company can double its dividend in 3 years. NetApp shares gained 1.60% today.

WELLS FARGO (WFC) is reportedly dismissing employees from its markets division, including credit sales and trading. The job cuts affect both senior and junior level bankers and have not yet been publicly announced. Wells Fargo shares rose 0.70% today 

S&P 500 Gainers

  • NAVI +6.39%
  • MRO +5.73%
  • RRC +5.37%
  • ALB +4.55%
 S&P 500 Laggards
  • MU -6.65%
  • LRCX -3.30%
  • UA -2.88%
  • URTX -2.75%
RTY 2000 Gainers
  • PLSE +23.39%
  • VERI +16.41%
  • MYE +11.19%
  • CRAZO +11.15%
RTY 2000 Laggards
  • CONN -14.30%
  • PRTA -9.18%
  • SNDX -8.82%
  • CNCE -8.63%

Rates & Commodities

US bonds fell today, with yields rising, as US Equities continued to rally. The 10-Year yield rose to 2.830% from today’s open of 2.819% and the US 30-Year Yield and is at 3.071% from today’s open of 3.058%. The USD$ rose today, currently at 90.44, up 36ps. The USD$ gained against most majors, falling only to CAD (1.2756, -13bps). The USD$ continued to gain against the JPY (107.39, +58bps). Gold fell 50bps to $1326.51. Silver rose 48bps throughout the day to $16.40. All other metals fell besides Aluminum, which rose 66bps to $1991.00. WTI Crude oil fell slightly from our earlier update but rose 0.43% for the day to $63.64.

Cryptocurrencies

Most major cryptocurrencies continued their downward trend for the day. The exception was Litecoin which rose by 0.18% to USD$ 118.86. Bitcoin is trading at USD$ 6,797.98 down 1.35%, Ethereum is trading at USD$ 378.38, down 1.13%, Ripple at USD$ 0.4943 down 2.31%, and Bitcoin Cash at $640.78 down 1.25%. In a Cryptocurrency and Initial Coin Offerings talk at Princeton University, SEC Chairman Jay Clayton was modestly positive about ICOs. He noted that the government approach to regulating ICOs may be actually helping to limit the misuse of ICOs.

EU Market Recap

European equities advanced sharply, recovering from yesterday’s declines. Markets in the region carried over positive momentum from late trading yesterday. Ebbing investor concerns regarding a full-scale Sino-American trade conflict pushed markets higher.The Euro Stoxx 600 finished up 2.40% and marked the biggest one-day gain in the index since June 2016. Technology, which was a laggard in the region, was the biggest outperformer today gaining 3.22%. Returns in media (+2.26%) lifted the technology sector higher. Basic resources rose 3.16% after being the worst performer yesterday (-2.42%). The basic resources sector was led higher by strong returns in oil & gas (+3.15%) and chemicals (+3.10). Financials advanced due to gains in financial services (+2.52%) and banking (+2.46%). No sectors in the Euro Stoxx 600 finished in negative territory.Regional markets advanced broadly with the FTSE 100 (+2.35%), DAX (+2.90%), and CAC40 (+2.62%) moving upward.Companies reporting earnings tomorrow include Bang & Olufsen (BO.DC), and Rosenbauer (ROS.AV).

EU Gainers

  • GR +16.9%
  • GR +16.7%
  • SW +12.2%
  • NO +11.8%
EU Laggards
  • FP -8.2%
  • SM -6.1%
  • RU -4.1%
  • GR -2.4%