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Market Wrap: Stocks, Bonds, Commodities
On Thursday, U.S. stocks tumbled again. The Dow Jones Industrial Average slid 348 points (-1.05%) to 33,027, the S&P 500 fell 55 points (-1.44%) to 3,822, and the Nasdaq 100 slumped 279 points (-2.49%) to 10,956.
Regarding U.S. economic data, third-quarter gross domestic product growth was finalized at an annualized rate of 3.2% on quarter (vs +2.9% in the previous estimate). The latest number of initial jobless claims rose to 216,000 (vs 225,000 expected).
The U.S. 10-year Treasury yield added 2.2 basis points to 3.684%.
Automobiles (-7.81%), semiconductors (-4.6%), and energy (-2.31%) sectors lost the most.
Tesla (TSLA) slumped 8.88% after the electric-car maker offered a higher discount of $7,500 on Model 3 and Model Y vehicles in the U.S.
Micron Technology (MU) fell 3.44%, as the memory-chip maker reported lower-than-expected quarterly earnings and announced plans to cut its workforce by about 10%.
CarMax (KMX) declined 3.66% after the company posted an 86% drop in quarterly profit on weak demand for used cars.
From a technical point of view, 3M (MMM), McDonald's (MCD), Microsoft (MSFT), and Walmart (WMT) crossed under their 50-day moving average.
European stocks also closed lower. The DAX 40 fell 1.30%, the CAC 40 declined 0.95%, and the FTSE 100 was down 0.37%.
U.S. WTI crude futures settled little changed at $78.26 a barrel.
Gold price slid $21 to $1,792 an ounce.
Market Wrap: Forex
The U.S. dollar index held steady at 104.40.
EUR/USD fell 12 pips to 1.0593.
USD/JPY dipped 7 pips to 132.39.
GBP/USD declined 46 pips to 1.2036. U.K. data showed that third-quarter gross domestic product declined 0.3% on quarter (vs -0.2% in the previous estimate, +0.2% in the previous quarter).
AUD/USD dropped 42 pips to 0.6665.
USD/CHF gained 47 pips to 0.9314, and USD/CAD increased 33 pips to 1.3645.
Bitcoin was flat at $16,785.
Morning Trading
In Asian trading hours, USD/JPY climbed to 132.65. This morning, Japan's data showed that consumer prices increased 3.8% on year in November (vs +3.9% expected).
Meanwhile, EUR/USD was broadly flat at 1.0605 and GBP/USD was little changed at 1.2035.
Gold edged up to $1,795.
Bitcoin rose to $16,824.
Expected Today
France's producer prices index is estimated to be up 20.3% on year in November.
In the U.S., durable goods orders are expected to drop 0.5% on month in November, while personal spending and income are both anticipated to grow 0.3%. Also, November new home sales are estimated to be down 5.0% on month and final readings of December Michigan consumer sentiment index is expected at 59.1. | |
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