Daily Fundamental Analysis
Market Recap: Stocks edged lower in the absence of any economic catalysts. Treasuries advanced, helped by a weakness in the German bond market. The dollar rose on softness among other major currencies. Crude fell on profit booking ahead of inventory reports and gold fell to nearly 4-month lows.
Stocks ended down slightly on Wednesday as an absence of economic catalysts put technicals in focus, with the S&P 500 ending the session just shy of a third straight record closing high. The S&P 500 also broke a four-day streak of gains. The S&P utilities index rose 0.49 percent to 213.97. U.S.-traded shares of Canadian drugmaker Valeant Pharmaceuticals fell 2.25 percent. Allergan fell 5.39 percent. Shares of Toll Brothers rose 2.08 percent. Michael Kors climbed 1.34 percent. DSW lost 27.37 percent after the company missed estimates on its results and outlooks. The Dow fell 0.24 percent. The S&P 500 fell 0.11 percent. The Nasdaq dropped 0.28 percent.
Yields on benchmark 10-year notes dropped to their lowest in nearly 11 months, undermined by falls in the German bond market following weak data and more month-end buying from institutional investors. The Treasury Department sold $35 billion in five-year notes at a high yield of 1.513 pct and $13 billion in 2-year floating rate notes at a high yield of 0.063 pct. The bid-to-cover ratio was 2.73 and 4.69 respectively. Benchmark 10-year notes were up 22/32 to yield 2.44 percent. 30-year bonds were up 1-14/32 to yield 3.29 percent.
The dollar climbed, extending a rally that began last week as the euro and sterling slipped beneath recent lows that may signal more gains for the greenback. The euro dropped 0.29 percent to $1.3593. The dollar against the yen was down 0.12 percent at 101.85 yen. The British pound was off 0.57 percent to $1.6713. The dollar index was up 0.26 to hit 80.56.
Crude fell as traders took profit ahead of inventory reports that were expected to show a build in crude. U.S. commercial crude oil stocks and refined product inventories were expected to have risen in the week to May 23, a preliminary Reuters poll of eight analysts showed. The survey forecast crude oil stocks to have increased 500,000 barrels last week. Oil fell 1.18 percent to $102.88 a barrel.
Gold fell to its lowest in nearly 4 months, extending the previous session's two-percent sell-off, as the dollar rallied against the euro and stock markets held near recent record highs. Spot gold fell 0.39 percent to $1,258.51 an ounce having earlier hit $1,255.66, which marked its weakest since early February. Gold futures for June delivery were down 0.54 percent at $1,258.70 an ounce.
Market Recap: Stocks edged lower in the absence of any economic catalysts. Treasuries advanced, helped by a weakness in the German bond market. The dollar rose on softness among other major currencies. Crude fell on profit booking ahead of inventory reports and gold fell to nearly 4-month lows.
Stocks ended down slightly on Wednesday as an absence of economic catalysts put technicals in focus, with the S&P 500 ending the session just shy of a third straight record closing high. The S&P 500 also broke a four-day streak of gains. The S&P utilities index rose 0.49 percent to 213.97. U.S.-traded shares of Canadian drugmaker Valeant Pharmaceuticals fell 2.25 percent. Allergan fell 5.39 percent. Shares of Toll Brothers rose 2.08 percent. Michael Kors climbed 1.34 percent. DSW lost 27.37 percent after the company missed estimates on its results and outlooks. The Dow fell 0.24 percent. The S&P 500 fell 0.11 percent. The Nasdaq dropped 0.28 percent.
Yields on benchmark 10-year notes dropped to their lowest in nearly 11 months, undermined by falls in the German bond market following weak data and more month-end buying from institutional investors. The Treasury Department sold $35 billion in five-year notes at a high yield of 1.513 pct and $13 billion in 2-year floating rate notes at a high yield of 0.063 pct. The bid-to-cover ratio was 2.73 and 4.69 respectively. Benchmark 10-year notes were up 22/32 to yield 2.44 percent. 30-year bonds were up 1-14/32 to yield 3.29 percent.
The dollar climbed, extending a rally that began last week as the euro and sterling slipped beneath recent lows that may signal more gains for the greenback. The euro dropped 0.29 percent to $1.3593. The dollar against the yen was down 0.12 percent at 101.85 yen. The British pound was off 0.57 percent to $1.6713. The dollar index was up 0.26 to hit 80.56.
Crude fell as traders took profit ahead of inventory reports that were expected to show a build in crude. U.S. commercial crude oil stocks and refined product inventories were expected to have risen in the week to May 23, a preliminary Reuters poll of eight analysts showed. The survey forecast crude oil stocks to have increased 500,000 barrels last week. Oil fell 1.18 percent to $102.88 a barrel.
Gold fell to its lowest in nearly 4 months, extending the previous session's two-percent sell-off, as the dollar rallied against the euro and stock markets held near recent record highs. Spot gold fell 0.39 percent to $1,258.51 an ounce having earlier hit $1,255.66, which marked its weakest since early February. Gold futures for June delivery were down 0.54 percent at $1,258.70 an ounce.
