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Quantamize End of Day Market Update April 9

Apr 09, 2018

US Market Recap

US equities advanced, though retreated from midday highs. Equities opened higher on calmer Sino-American trade rhetoric, however, positive sentiment ebbed away towards the close. The VIX fell to 20.70 midway through trading but closed at 21.77 (+1.30%) as investors shrugged off seemingly positive trade indications. Technology, an early outperformer, pared gains throughout the day.  

The Congressional Budget Office estimates the federal budget deficit at $804 billion this fiscal year, 43% higher than was projected last summer. Tax cuts and increasing government spending have been cited as the causes for this increase. The CBO projected fiscal stimulus to boost US Real GDP to 3.3% for the year, before dropping to 2.4% next year. The CBO estimates that over the entire decade, Real GDP growth to remain at a tepid 1.9%.

The S&P 500 rose 0.33%, more than 1.2% lower than its intra-day highs. Healthcare (+0.93%) was the biggest outperformer, led by returns in biotechnology (+1.25%). Technology was mixed with telecommunications (-1.17%) extending losses, and information technology (+0.78%) retreating from earlier highs. Consumer stocks were broad underperformers with consumer discretionary and consumer staples stocks receding by 0.35% and 0.19%, respectively.

The Nasdaq Composite closed 0.51% higher. Despite relinquishing more than 1.7%, the Nasdaq Composite finished as one of the better performing major US indices. Semiconductors, a catalyst for the Nasdaq’s early ascent, retreated significantly by session’s close. Large-cap semiconductors gained 0.89% today but were up 3.84% earlier in trading.  

Russell 2000 stocks finished relatively flat, increasing 0.08%. All sectors in the Russell 2000 were in positive territory midday, but only healthcare (+2.58%) and technology (+0.5%) were able to do so by the close. Financials (-0.69%) were the biggest underperformer, followed by consumer discretionary (-0.46%)

Stocks Trending the News

ALCOA CORP. (AA) and CENTURY ALUMINUM CO (CENX) shares are rallying today on news of Russian sanctions that could affect aluminum supply. Alcoa shares rallied 5.33%, and Century Aluminum shares rallied 12.09%.

The US DOJ approved BAYER (BAYN.GR)’s acquisition of MONSANTO (MON). Shares of Bayer closed down 0.19% in Germany, and Monsanto shares rallied 6.19%.

HCA HEALTHCARE (HCA)’s CFR was upgraded to Ba1 from Ba2 by Moody’s. HCA shares finished up 0.06%.

Morgan Stanley upgraded SEAGATE Technology (STX) to overweight from equal-weight. The price target was raised to $72 from $51. Seagate shares are up 2.68% post-market.

WORLD WRESTLING ENTERTAINMENT (WWE) reported 2.1 million subscribers on its WWE Network after WrestleMania yesterday. This is 9% higher than the number of subscribers after WrestleMania 2017 last April. WWE finished down 1.31%. 

S&P 500 Gainers

  • LUK +11.58%
  • NKTR +11.27%
  • MON +6.19%
  • MRK +5.25%
S&P 500 Laggards
  • LOW -3.40%
  • KMX -2.54%
  • GPS -2.50%
  • M -2.18%
RTY 2000 Gainers
  • AVXS +81.57%
  • ABEO +18.31%
  • NYNY +16.02%
  • RGNX +15.63%
RTY 2000 Laggards
  • NMI -22.60%
  • MTG -17.16%
  • RDN -15.83%
  • ESNT -15.63%

Rates & Commodities

US bonds traded slightly lower today, with the 10-Year yield closing at 2.779%, lower from today’s open of 2.792% and the US 30-Year Yield closed at 3.013% slightly lower than this morning’s level of 3.067%. The USD$ was lower today, closing at 89.85, down 34bps on the day. The dollar fell significantly against the Canadian Dollar down 65bps to 1.2700. Precious metals rallied today with Gold at (USD$ 1336.57/ounce) and Silver (USD$ 16.50/ounce), higher by 27bps and 73bps respectively. Platinum (USD$ 933.21/ounce) and Palladium (USD$931.74/ounce) rallied 1.73% and 2.92% respectively. Lastly, WTI Crude oil rallied 205bps to USD$ 63.33/barrel. The EIA will be releasing its Short-Term Energy Outlook tomorrow.

Cryptocurrencies

22 of the top 25 cryptocurrencies by market cap fell today. Tron (TRX) and Lisk (LSK) were the biggest decliners, both coins fell 7.25%. Bitcoin is trading at $6,668.97 down 4.79%, Ethereum is trading at $391.29, down 1.88%, Ripple at $0.4838 down 2.43%, Bitcoin Cash at $630.09 down 3.57%, and Litecoin at $113.79 down 3.02%. Neo (NEO), VeChain (VEN), Verge (XVG) were the only positive gainers, up 4.95%, 0.80%, and 8.88% respectively.  Crypto news is light today. The UK Financial Conduct Authority (FCA) is working with the UK Treasury Committee and the BoE on cryptocurrency regulations that it will release later this year.

EU Market Recap

European edged broadly higher on positive sentiment from deflating Sino-American trade concerns.Major Russian indices are lower following US sanctions against various Russian firms and oligarchs, marking the most severe penalties imposed by the US onto Russia to date.The Euro Stoxx 600 crept 0.13% higher. Technology (+0.72%) continues to rebound from poor returns earlier last week. Financials were lifted by returns in financial services (+0.41%) and banking (+0.36%).   Autos & Parts (-0.56%) continued to be a laggard. Basic resources (-0.91%) moved lower, weighed down by disappointing returns in chemicals (-0.18%) and oil & gas (0.31%).Regional markets advanced with the FTSE 100 (+0.15%), DAX (+0.17%), and CAC 40 (+0.10%) finishing higher.

EU Gainers

  • LN +14.0%
  • NO +9.6%
  • NA +7.9%
  • SS +7.8%
EU Laggards
  • LN -9.4%
  • SS -7.8%
  • SW -7.6%
  • LN -4.8%