FOREIGN MARKETS
US stocks end in the red
The Dow breaks its five day winning streak
U.S. stock market closed broadly lower on Wednesday, 14 May 2014 as investors turned cautious amid a selloff of small and high-growth companies. Equity indices began the midweek session below their flat lines, but stocks dived to a fresh low during the last 90 minutes of action. Furthermore, the relative weakness among the top-weighted sectors prevented sustained rallies from taking shape.
The Dow Jones Industrial Average broke its five-day winning streak and closed 101.47. points, or 0.6%, lower at 16,613.97. The Nasdaq Composite ended the day down 29.54 points, or 0.7%, at 4,100.63. The S&P 500 finished 8.92 points, or 0.5% lower at 1,888.53.
Consumer discretionary, financials, technology, and industrials sectors lagged throughout the session, while health care displayed relative strength thanks.
Latest data at Wall Street showed that producer prices increased 0.6% in April, up from a 0.5% increase in March. The Briefing.com consensus expected producer prices to increase 0.2%. The economic consensus is once again having difficulties estimating producer inflation using the new methodologies. Final demand for services, which increased by its largest amount (0.7%) in March since January 2010, was anticipated to fall back in April. That did not happen. Services prices rose another 0.6% in April, which was one of the largest two-month gains in the history of the index. Final demand for goods increased 0.6% in April, up from being flat in March. Food prices, which jumped 1.1% in March, increased 2.7% in April. Energy costs, which were expected to be a primary factor for April inflation gains, increased a minute 0.1% in April after falling 1.2% in March. Excluding food and energy, core PPI increased 0.5% in April, down from a 0.6% increase in March. The consensus expected these prices to increase 0.2%.
Seapartely, the weekly MBA Mortgage Index rose 3.6% to follow last week's increase of 5.3%.
Among major stocks under focus, Cisco Systems shares rose 3.6% in aftermarket trade as the Dow component reported a fall in revenue, but results still beat estimates.
Macy's shares gave up post-earnings gains and closed flat. The company reported first-quarter earnings that beat expectations, as sales improved in April after severe weather hurt business between January and March. Shares of Deere & Co. fell 2% after the tractor maker reported its profit fell 9.5% as sales of equipment fell. It also predicted a steeper-than-expected decline in equipment sales for the full fiscal year.
Bullion metal prices ended more than a% higher on Wednesday, 14 May 2014. U.S. gold futures rose Wednesday on safe-haven buying on worries about the continuing crisis in Ukraine. Silver prices settled at their highest level in a month on Wednesday, buoyed by a report that said physical demand for the metal rose to a record last year following news that London Silver Market Fixing will end its silver price fixing in mid-August.
Gold for June delivery rose $11.10, or 0.9%, to settle at $1,305.90 an ounce on Comex. July silver rose 23 cents, or 1.2%, to $19.78 an ounce on the Comex division of the New York Mercantile Exchange.
Ukraine tensions and U.S. economic data remain the key drivers in the market at the moment, with gold ticking up or down within its range depending upon the latest news.
Crude Oil prices headed toward their highest close in more than three weeks on Wednesday, 14 May 2014 finding support from expectations of stronger demand during the summer-driving season and continued turmoil in Ukraine, even as a weekly U.S. government report showed a modest, but unexpected climb in crude inventories. Crude oil remained in positive territory all day, with Russia/Ukraine tension and talk of U.S. lifting export ban providing price support.
June crude oil sold off into and after floor trading closed, but remained above the $102/barrel level, closing $0.61 higher at $102.34/barrel.
The U.S. Energy Information Administration said crude stockpiles rose 900,000 barrels for the week ended 9 May 2014. Market was looking for a decline of 1.5 million barrels. The report aslo showed that gasoline supplies fell by 800,000 barrels, while distillate stockpiles declined by 1.1 million barrels. Gasoline stockpiles were expected to fall by 1 million barrels, while distillates, which include heating oil, were seen up 1 million barrels.
Daily NYSE volume has been trending lower all week with today's tally (607 million) representing the second-lowest total of the week.
Indian ADRs ended mostly lower on Wednesday. Among the IT name, Wipro was down 1.09% at $11.83 and Infosys was up 0.22% at $54.42. In the banking space, ICICI Bank was down 0.25% at $47.94 and HDFC Bank shed 0.43% at $43.72. In the other sectors, Tata Motors gained 1.33% at $39.56 and Dr Reddy's Laboratories plunged 4.88% at $41.68.
Tomorrow, weekly initial claims (consensus 325,000), April CPI (consensus 0.3%), and the Empire Manufacturing survey for May (consensus 4.8) will all be released at 8:30 ET, while March Net Long-Term TIC Flows will be announced at 9:00 ET. April Industrial Production (consensus 0.0%) and Capacity Utilization (consensus 79.2%) will be announced at 9:15 ET, while the Philadelphia Fed survey for May (consensus 9.1) and the May NAHB Housing Market Index (consensus 48) will cross the wires at 10:00 ET.
US stocks end in the red
The Dow breaks its five day winning streak
U.S. stock market closed broadly lower on Wednesday, 14 May 2014 as investors turned cautious amid a selloff of small and high-growth companies. Equity indices began the midweek session below their flat lines, but stocks dived to a fresh low during the last 90 minutes of action. Furthermore, the relative weakness among the top-weighted sectors prevented sustained rallies from taking shape.
The Dow Jones Industrial Average broke its five-day winning streak and closed 101.47. points, or 0.6%, lower at 16,613.97. The Nasdaq Composite ended the day down 29.54 points, or 0.7%, at 4,100.63. The S&P 500 finished 8.92 points, or 0.5% lower at 1,888.53.
Consumer discretionary, financials, technology, and industrials sectors lagged throughout the session, while health care displayed relative strength thanks.
Latest data at Wall Street showed that producer prices increased 0.6% in April, up from a 0.5% increase in March. The Briefing.com consensus expected producer prices to increase 0.2%. The economic consensus is once again having difficulties estimating producer inflation using the new methodologies. Final demand for services, which increased by its largest amount (0.7%) in March since January 2010, was anticipated to fall back in April. That did not happen. Services prices rose another 0.6% in April, which was one of the largest two-month gains in the history of the index. Final demand for goods increased 0.6% in April, up from being flat in March. Food prices, which jumped 1.1% in March, increased 2.7% in April. Energy costs, which were expected to be a primary factor for April inflation gains, increased a minute 0.1% in April after falling 1.2% in March. Excluding food and energy, core PPI increased 0.5% in April, down from a 0.6% increase in March. The consensus expected these prices to increase 0.2%.
Seapartely, the weekly MBA Mortgage Index rose 3.6% to follow last week's increase of 5.3%.
Among major stocks under focus, Cisco Systems shares rose 3.6% in aftermarket trade as the Dow component reported a fall in revenue, but results still beat estimates.
Macy's shares gave up post-earnings gains and closed flat. The company reported first-quarter earnings that beat expectations, as sales improved in April after severe weather hurt business between January and March. Shares of Deere & Co. fell 2% after the tractor maker reported its profit fell 9.5% as sales of equipment fell. It also predicted a steeper-than-expected decline in equipment sales for the full fiscal year.
Bullion metal prices ended more than a% higher on Wednesday, 14 May 2014. U.S. gold futures rose Wednesday on safe-haven buying on worries about the continuing crisis in Ukraine. Silver prices settled at their highest level in a month on Wednesday, buoyed by a report that said physical demand for the metal rose to a record last year following news that London Silver Market Fixing will end its silver price fixing in mid-August.
Gold for June delivery rose $11.10, or 0.9%, to settle at $1,305.90 an ounce on Comex. July silver rose 23 cents, or 1.2%, to $19.78 an ounce on the Comex division of the New York Mercantile Exchange.
Ukraine tensions and U.S. economic data remain the key drivers in the market at the moment, with gold ticking up or down within its range depending upon the latest news.
Crude Oil prices headed toward their highest close in more than three weeks on Wednesday, 14 May 2014 finding support from expectations of stronger demand during the summer-driving season and continued turmoil in Ukraine, even as a weekly U.S. government report showed a modest, but unexpected climb in crude inventories. Crude oil remained in positive territory all day, with Russia/Ukraine tension and talk of U.S. lifting export ban providing price support.
June crude oil sold off into and after floor trading closed, but remained above the $102/barrel level, closing $0.61 higher at $102.34/barrel.
The U.S. Energy Information Administration said crude stockpiles rose 900,000 barrels for the week ended 9 May 2014. Market was looking for a decline of 1.5 million barrels. The report aslo showed that gasoline supplies fell by 800,000 barrels, while distillate stockpiles declined by 1.1 million barrels. Gasoline stockpiles were expected to fall by 1 million barrels, while distillates, which include heating oil, were seen up 1 million barrels.
Daily NYSE volume has been trending lower all week with today's tally (607 million) representing the second-lowest total of the week.
Indian ADRs ended mostly lower on Wednesday. Among the IT name, Wipro was down 1.09% at $11.83 and Infosys was up 0.22% at $54.42. In the banking space, ICICI Bank was down 0.25% at $47.94 and HDFC Bank shed 0.43% at $43.72. In the other sectors, Tata Motors gained 1.33% at $39.56 and Dr Reddy's Laboratories plunged 4.88% at $41.68.
Tomorrow, weekly initial claims (consensus 325,000), April CPI (consensus 0.3%), and the Empire Manufacturing survey for May (consensus 4.8) will all be released at 8:30 ET, while March Net Long-Term TIC Flows will be announced at 9:00 ET. April Industrial Production (consensus 0.0%) and Capacity Utilization (consensus 79.2%) will be announced at 9:15 ET, while the Philadelphia Fed survey for May (consensus 9.1) and the May NAHB Housing Market Index (consensus 48) will cross the wires at 10:00 ET.
