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Market Wrap: Stocks, Bonds, Commodities
On Thursday, U.S. stocks pared early gains to close lower. The Dow Jones Industrial Average fell 249 points (-0.73%) to 33,699, the S&P 500 dropped 36 points (-0.88%) to 4,081, and the Nasdaq 100 was down 114 points (-0.91%) to 12,381.
The U.S. 10-year Treasury yield rebounded 5.2 basis points to 3.662%.
Media (-3.06%), transportation (-1.77%), and banks (-1.69%) sectors lost the most.
Alphabet (GOOGL) dropped a further 4.39% after the company's new AI chatbot product "Bard" gave inaccurate results.
Walt Disney (DIS) declined 1.27%. The entertainment and media giant posted upbeat quarterly results, but announced plans to cut 7,000 jobs.
Mattel (MAT) plunged 10.68% after the children's toy maker posted lower-than-expected fourth-quarter earnings.
On the other hand, Tesla (TSLA) gained a further 3.00% as investors looked forward to the electric-car maker's "Master Plan 3" to be released on March 1.
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MGM Resorts International (MGM) rose 6.44%. The resort operator reported better-than-expected quarterly earnings and enlarged its share buyback by $2 billions.
Regarding U.S. economic data, the latest number of initial jobless claims increased to 196,000 (vs 189,000 expected).
European stocks closed higher. The DAX 40 rose 0.72%, the CAC 40 added 0.96%, and the FTSE 100 was up 0.33%.
U.S. WTI crude futures declined $0.80 to $77.64 a barrel.
Gold price sank $14 to $1,861 an ounce.
Market Wrap: Forex
The U.S. dollar index dropped to 103.25.
EUR/USD climbed 25 pips to 1.0737. Data showed that Germany's inflation rate ticked up to 8.7% on year in January (vs 9.1% expected, 8.6% in December).
USD/JPY gained 17 pips to 131.57.
GBP/USD rose 45 pips to 1.2117. In the U.K., the Royal Institute of Chartered Surveyors house prices balance posted at -47% in January (vs -50% expected, -42% in December).
AUD/USD rose 13 pips to 0.9223.
USD/CHF added 9 pips to 0.6934, and USD/CAD was up 9 pips to 1.3456.
Bitcoin slumped nearly 5% to $21,900. Crypto investors were discouraged by crypto exchange Kraken's agreement with the U.S. Securities and Exchange Commission on discontinuing its crypto staking products.
Morning Trading
In Asian trading hours, USD/JPY was steady at 131.65. This morning, data showed that Japan's producer prices increased 9.5% on year in January (vs +10.6% expected).
Meanwhile, EUR/USD slipped to 1.0725 and GBP/USD fell to 1.2096.
Gold remained subdued at $1,860.
Bitcoin remained under pressure at $21,885.
Expected Today
U.K. fourth quarter gross domestic product is expected to grow 0.2% on year, while December industrial production is estimated to drop 0.2% on month and trade deficit is anticipated at 2.8 billion pounds.
In the U.S., February Michigan consumer sentiment index is expected at 65.0.
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