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U.S Market Wrap 12 December 2018

Posted by James Nasioulas on 12-Dec-2018 11:54:12

Stocks had another choppy trading session on Tuesday as the major U.S indexes sold off before a short lived rally after lunch closing in negative territory after President Trump threatened of a government shutdown as disagreements over funding in relation to the U.S-Mexico border wall arose. The Dow fell 53 points or -0.22%, the S&P 500 finished flat -0.04% and the Nasdaq finished higher by 0.16%.

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President Trump also seemed to be twitter happy again as he announced the news on China moving to reduce to tariff on U.S made cars to 15% from 40%. Shares of the automakers rose marginally as Ford (F) +0.23% and General Motors (GM) +0.78%. In the auto parts industry, O’Reilly Auto Parts (ORLY) +1.33%, AutoZone (AZO) -0.85% and Advanced Auto Parts (AAP) -0.33%.

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Financial continued their downward decline as Wells Fargo (WFC) shares were lower by -2.13% along with JP Morgan (JPM) shares down -0.96%. On a more positive note, Twitter (TWTR) rose +3.05%, Broadcom shares were +3.17% higher and NGR Energy (NGR) climbed +2.66%.

On the earnings front, in after-hours trading American Eagle (AEO) Outfitters shares are trading 4.6% lower on weaker outlook and missing on revenue estimates, reporting $1 billion against the expected $1.02 billion.

Moving away from equities, we saw strength in the U.S dollar as dollar index hit a one month peak at 97.47 up 0.26 percent as the trade news surfaced. Against the U.S dollar, the Australian dollar has rallied from the December lows at 0.7170 trading at 0.7222 while the British Pound has fallen through support at 1.2690 following Brexit concerns and at 1.2501. Light Sweet crude is currently trading at $52.14 USD up 0.95% and Gold is trading at $1,242.85 USD. See U.S dollar index daily chart below. 

dxc1 12.12.18

Topics: +U.S. Market Wrap