Tuesday, 11 Nov 2014 – AMC

Market Summary

from Briefing.com [BRIEFING.COM] The major averages ended the Tuesday session on a flat note after spending the trading day near their unchanged levels. The S&P 500 added 0.1% after maintaining a five-point range throughout the day. Today's trading volume (600 million shares at NYSE) represented the lowest total since early September, but the subdued participation was understandable since the bond market was closed for Veterans Day. The European session had a similar feel with some investors away for Armistice Day. Elsewhere, Japan's Nikkei spiked 2.0% after Reuters reported Prime Minister Shinzo Abe is likely to push back the next sales tax increase and may call for a snap election. The news weighed on the yen, sending the dollar/yen pair into the 116.00 area, but intraday dollar weakness resulted in a pullback below 115.50. The modest 0.3% retreat in the Dollar Index (87.54, -0.27) helped crude oil ($77.83, +0.43) to a gain of 0.6% while the energy sector (+0.3%) ended the session near its high after showing opening weakness. Meanwhile, the remaining cyclical sectors ended mixed. Financials (-0.2%), and industrials (-0.1%) lagged while consumer discretionary (+0.4%), technology (+0.1%), and materials (+0.5%) registered gains. Industrials kept pace with the market early on, but slumped alongside General Electric (GE 26.38, -0.09). The top-weighted sector component lost 0.3% while transport stocks also underperformed. The Dow Jones Transportation Average shed 0.1%. On the upside, the materials sector received support from miners as Market Vectors Gold Miners ETF (GDX 18.22, +0.77) rallied 4.4%. The smallest cyclical sector by weight climbed ahead of the health care (+0.4%), which started in the lead, but retreated from its early high. Unlike health care, the other countercyclical groups ended in the red. The utilities sector (-0.4%) was the weakest performer while consumer staples (-0.2%) and telecom services (-0.1%) settled closer to their flat lines.

Economic Data

from Briefing.com No Economic Data Released

Technical Update

Under Construction

Market Internals

Bonds, Currencies & Commodities

from Briefing.com

Bonds

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Currencies

Light Volume Holiday Trade: The Dollar Index has floated in a tight range on extremely light volume. Bond markets are closed in observance of Veteran’s Day and currencies are seeing a quiet day in light of this event. After seeing a rapid run up the past few weeks the DXY has started to see some consolidation just below the 88 level. Focus for the markets will shift to end of the week economic reports including: Thu- Claims, JOLTs and Fri- Retail Sales, Michigan Sentiment.

• The euro continues to show signs of holding the 1.24 level. Of note, ECB member Yves Mersch said it was ‘theoretically possible’ for the ECB to run a sovereign bond purchase program. This is notable as it reverses prior comments from Mr. Mersch and also because he is a German. This has led markets to speculate that the ECB would look to move on sovereign bonds if the current set of tools being used by the central bank proved inadequate.
• The pound continues to hold the 1.58 level and is climbing to 1.59 in limited trade activity. Market focus will turn to tomorrow’s Jobs Report (4:30am), Inflation report and BoE Governor Carney testimony (5:30am). Comments on monetary policy and the impact of a slowing Euro reign will weigh heavily on the pound.
• The yen tested the 116 level for the first time in seven years. The weakness comes on news that PM Abe is considering postponing a planned sales tax increase and call for an early snap election in December. Japan was busy on the economic data front with Current Account posting a larger than expected surplus, Bank Lending growth remaining steady, and Machine Tools, Consumer Sentiment, and Economic Surveys all showing declines.

Commodities

• Crude's LoD of 76.42 was reached in overnight trading, but those levels were tested again around the lunch hour.
• However, futures took a leg higher shortly after and ended today's session at $77.87/barrel.
• Natural gas also found a session bottom in overnight trading, hitting a LoD of 4.121 before trended higher.
• Dec gold rose $3.30 (+0.3%) to $1163.10/oz Dec silver rose 2.9 cents (+0.2%) to $15.70/oz Copper rose 1.1 cents (+0.4%) to $3.031/lb

Preview: Wednesday, 12 Nov 2014

Economic Data

• Wholesale Inventories - 10:00 am : 0.3% (Prior 0.7%)

Other Events of Interest

• Fed’s Plosser (2014 voting) – 03:00
• 10 Year $24-bln Treasury Note Auction – 13:00

Commentary

Kicking start my first DMA. Many more changes to come. Direction for Wednesday 12 Nov 2014: DOWN▼