Asia Morning: Tech Stocks Lead U.S. Market Lower Again
Ming Lam November 2, 2020 11:59 AM
Twitter (-21.11%) becomes the top loser...
On Friday, U.S. stocks ended in the red again. The Dow Jones Industrial Average fell 157 points (-0.59%) to 26501, the S&P 500 dropped 40 points (-1.21%) to 3270, and the Nasdaq 100 slumped 297 points (-2.62%) to 11052.
S&P 500 Index (Daily Chart) : Downside Prevails
Sources: GAIN Capital, TradingView
Investors became cautious ahead of the November 3 presidential election, and remained concerned over the record-breaking COVID-19 cases around the world.
At the weekend, U.K. Prime Minister Boris Johnson announced a second lockdown for England in order to curb rising coronavirus cases. Pubs, restaurants, gyms and non-essential shops will have to close for four weeks, while schools, colleges and universities can stay open.
Technology Hardware & Equipment (-4.52%), Retailing (-3.7%) and Semiconductors & Semiconductor Equipment (-1.94%) sectors lost the most. Facebook (FB -6.31%), Amazon.com (AMZN -5.45%) and Apple (AAPL -5.60%) were down heavily despite posting better-than-expected results. Alphabet (GOOGL +3.80%) ended higher.
Twitter (TWTR -21.11%) was the top loser after third-quarter daily active-user amount missed market expectations.
Approximately 60% (58% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 16% (12% in the prior session) were trading above their 20-day moving average.
Regarding U.S. economic data, Personal Income rose 0.9% on month in September (+0.4% expected) and Personal Spending increased 1.4% (+1.0% expected). The University of Michigan's Consumer Sentiment Index advanced to 81.8 in October (81.2 expected), and the Market News International Chicago Business Barometer slipped to 61.1 in October (58.0 expected).
European stocks ended mixed. The Stoxx Europe 600 added 0.18%, France's CAC 40 climbed 0.54%, while Germany's DAX 30 slipped 0.36% and the U.K.'s FTSE 100 dipped 0.08%.
U.S. Treasury prices remained under pressure, as the benchmark 10-year Treasury yield charged higher to 0.855% from 0.835% Thursday.
Spot gold gained $11 (+0.60%) to $1,878 an ounce.
U.S. WTI crude futures (December) sank a further $0.57 (-1.58%) to $35.6 a barrel.
On the forex front, the U.S. dollar was still firm against other major currencies. The ICE Dollar Index has regained the 94.00 level.
EUR/USD declined 0.24% to 1.1646 extending its losing streak to a fifth session. Official data showed that the eurozone's GDP grew 12.7% on quarter in the third quarter (+9.6% expected), consumer prices added 0.2% on month in October (+0.1% expected) and jobless rate rose to 8.3% in September (8.2% expected).
Germany's GDP increased 8.2% on quarter in the third quarter (+7.3% expected), while retail sales declined 2.2% on month in September (-0.6% expected).
France's GDP jumped 18.2% on quarter in the third quarter (+15.0% expected), and consumer prices edged down 0.1% on month in October (+0.0% expected).
GBP/USD added 0.14% to 1.2949. In the U.K., the Nationwide Building Society House Price Index rose 0.8% on month in October (+0.4% expected). Meanwhile, investors should beware the impact on the pound of the U.K. government's latest announcement of a new round of pandemic-induced lockdown measures.
USD/JPY edged higher to 104.66, while both AUD/USD and USD/CAD closed flat at 0.7028 and 1.3322 respectively.
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.