US Market Wrap 3 October 2018

Posted by Billy Macris on 03-Oct-2018 09:02:21

US equities finished Tuesday mixed as strength was seen in the Dow through trade sensitive stocks gaining for a second straight day, whilst both the S&P 500 and Nasdaq closed the session in negative territory. Stock leading the gains in the Dow included Intel shares rising 3.55 percent, Caterpillar shares finishing higher by 1.67 percent and 3M Co rising 1.66 percent.

Focusing on the best performing sector strength was also seen in the more defensive sectors, Utilities and Consumer Staples each rising 1.29 percent and 0.62 percent, respectively as treasury yields fell. The fall in yields came after remarks from Federal Reserve Chairman Jerome Powell overnight suggested the Fed would not hesitate to act on any sign of aggressive inflation. The yield on the benchmark 10-year Treasury notes was lower at 3.061 percent. 

The Nasdaq looked like it didn't want to join the Dow in making new highs as the index fell 0.47%. Some of the bigger names fell away such as Amazon shares falling 1.6% after the company announced it would raise the minimum wage to $15 per hour for all US employees. Alphabet’s Google lost a key executive with Sridhar Ramaswamy, head of Google's online ad business for the past five years. Google shares were little unchanged down 0.07 percent. Facebook fell 1.91 percent in a third session of declines totalling 5.6 percent after the social media on Friday disclosed its worst ever security breach ever. The company continues to face continuing calls for legislation to force tech companies to take responsibility for breaches.

As earnings season looks like its set to kick off again, we had beverage and snack giant PepsiCo report on Tuesday.  The company reported adjusted quarterly profit of $1.59 per share, two cents above estimates with the company also beating revenue forecasts. However it did cut its full year earnings outlook to due to a strengthening US dollar and as such the stock closed down 1.80 percent.

Moving away from equities the euro fell to $1.1541 down 0.30 percent following comments from a Senior Italian lawmakers suggesting the country should adopt a national currency. The Australian dollar fell 0.51 percent down to $0.7186 and the dollar index strengthen 0.25 percent to 95.531. Oil prices slightly eased but still remain close to four-year highs. Brent crude fell 18 cents to settle at $84.80 per barrel and WTI crude was off 7 cents at $75.23 a barrel.

3.10.18 - US1

3.10.18 - US2

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Chart of the Day: Intel Corp (INTC) Daily chart

3.10.18 - intc

Topics: +U.S. Market Wrap