Top Movers

US open: Dow Jones on track for longest decline in five months

By Iain Gilbert

Date: Thursday 15 Nov 2018

US open: Dow Jones on track for longest decline in five months

(Sharecast News) - Wall Street trading began with losses on Thursday, following on from those seen during the previous session, as the dollar surged against the pound and investors continued to eye headlines around trade talks between the US and China.
At 1525 GMT, the Dow Jones Industrial Average was 0.58% lower at 24,933.91, while the S&P 500 was down 0.62% to 2,684.94 and the Nasdaq slipped 0.33% to 7,113.05.

The Dow opened almost 200 points lower on Thursday, setting the benchmark index on a course for its longest skid in five months.

Sino-US relations were in focus again following a Reuters report on Wednesday that China has delivered a written response to US demands for trade reforms, prompting hopes of more formal negotiations to resolve the trade spat.

Meanwhile, the dollar was up 1.3% against the pound as senior UK cabinet ministers including Brexit Secretary Dominic Raab resigned just hours after Prime Minister Theresa May's cabinet "collectively approved" a withdrawal agreement with the European Union.

Oanda analyst Craig Erlam said that while much of the focus is likely to be on this side of the pond, there's also plenty for traders to focus on in the US.

"Jerome Powell's comments on Wednesday didn't really shed any further light on interest rate expectations in light of the recent market volatility, although he did allude to the fact that the central bank does keep an eye on it.

"I think a December hike is all but guaranteed regardless and they may then offer some updated views on interest rates next year, alongside new forecasts. I, therefore, don't expect much from Powell's comments today that traders will get too excited about."

In corporate news, 3M ticked ahead 0.61% after the company set out its financial guidance for 2019, while Walmart slipped 0.93% at the bell despite posting better-than-expected third-quarter earnings and lifting its full-year adjusted earnings per share outlook.

JC Penney dropped 2.05% after its new CEO said ending losses would be a "lengthy process".

Nvidia and Nordstrom results are due after the close.

On the data front, US jobless claims edged slightly higher by surprise last week.

According to the Bureau of Labour Statistics, initial unemployment claims for the week ending on 10 November rose by 2,000 to reach 216,000.

Economists had pencilled-in a reading of 210,000.

In parallel, the four-week moving average, which aims to smooth out the fluctuations in the data from one week to the next, increased by 1,500 to 215,250.

US retail sales grew quicker than expected last month, boosted by sales of motor vehicles, building materials and at gasoline stations.

Total retail sales volumes grew at a 0.8% month-on-month pace in October to reach $511.5bn, according to the Department of Commerce. Economists had forecast an increase of 0.5%.

September retail sales, however, were revised lower by two-tenths of a percentage point to reveal a drop of 0.1% month-on-month.

Versus a year ago, retail sales were up by 4.6%.

Meanwhile, the import price index rose 0.5% in October on the back of rising gas prices was a big contributor.

The increase in import prices over the past 12 months moved up to 3.5% from 3.1%.

Elsewhere, manufacturing conditions in the Philadelphia region deteriorated more than expected in November, according to a survey released on Thursday.

The Philadelphia Fed's index for current manufacturing activity slumped to 12.9 this month from 22.2 in October, marking its lowest reading since August and coming in below expectations for a much smaller drop to 20.0.

Nearly 35% of manufacturers reported an increase in overall activity this month, while 22% reported decreases.

Lastly, business conditions in the New York region unexpectedly improved in November, according to a survey from the New York Fed.

The Empire State manufacturing index rose to 23.3 from 21.1 in October, beating expectations for a reading of 20.0. The survey found that 41% of respondents reported an improvement in conditions over the month, while 18% said conditions had worsened.

The new orders index slipped to 20.4 this month from 22.5 in October, while the shipments index rose to 28.0 from 26.3. The delivery time gauge ticked down to 5.0 from 4.4 and the inventories index surged to 10.9 from 0.8 last month.

Meanwhile, the index for future business conditions pushed up five points to 33.6.

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page