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US Market Wrap 21 August 2018

Posted by Billy Macris on 21-Aug-2018 13:04:00
Markets rose on Monday following continued optimism over trade talks with China and the US. However stocks pared gains from the session highs after President Trump said he was “not thrilled” with the raising of interest rates by the Federal Reserve. On Wednesday investors will be awaiting the release of the Fed’s August meeting minutes to gain a better understand of the central banks view on economic growth and decision to raise rates in the future. Despite this, all of Wall Street’s major indexes finished in positive territory with Materials +0.72%, Energy +0.66% and Industrials +0.64% S&P 500 sectors all rising in line with the trade talks planned for later this week.

In equity markets, shares of Nike rose +3.05%, hitting an all time high of $82.42 being by far the best performer on the Dow after receiving a broker upgrade by investment bank Piper Jaffray and Susquehanna. Netflix also performed well rising +3.5% overnight after the company confirmed it was testing ads on its platform. Intel Corp fell away during the trading session dropping -1.3% after reports surfaced regarding the company’s disclosure of security bugs in some of it microprocessors may mean cloud companies would seek other suppliers.

Estee Lauder shares rose 3.4% after beating analysts’ expectations and in some M&A action, PepsiCo agreed to buy SodaStream for $3.2 billion or $144 per share representing a 10.9% premium from SodaStream’s closing price of $129.85. Shares of SodaStream rose +9.4%.

Moving way from equities and into commodity markets, oil rose as Brent crude rose 38 cents to settle at $72.21 a barrel, a 0.5 percent gain. WTI crude rose 52 cents, or 0.8 percent, to end at $66.43 a barrel. In currency markets, the dollar index fell -0.3% to a low of 95.83, the euro gained +0.34% to $1.148 against the US dollar and the Turkish lira fell 1.5% after S&P Global and Moody’s downgraded the country’s sovereign credit rating further into junk territory.

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Chart of the Day: Nike Inc (NKE) daily chart

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Topics: +U.S. Market Wrap