Market Brief: FX and AAPL Quiet, but Momentum Stocks Extend Drop

See a summary of the top market themes and trends from today's US trading session!

  • FX: It was a quiet day for major currencies, with none of the majors moving by more than 0.35% against one another. At the margin, the loonie was the strongest major after decent housing data and the Japanese yen was the weakest (though there are signs it may soon be time to buy).
  • According to a report, China is willing to buy more American goods, though hawkish comments from US Trade Director Navarro suggest tensions between the two superpowers remain elevated.
  • Commodities: Gold shed nearly -1% on the day and oil prices lost -0.5% on headlines that hawkish US National Security Advisor John Bolton had resigned and that the EIA was lowering its forecast for global demand.

  • US indices finished flat to moderately lower on the day. Yields on the benchmark 10-year bond tacked on another 7bps today and are up nearly 30bps from last week’s low.
  • Energy (XLE) was the strongest sector today while REITs (XLRE) were the weakest, hurt by rising yields.
  • Stocks on the move:
    • Apple (AAPL) edged 1% higher after introducing a $699 iPhone 11 and pricing its new streaming service at $4.99 per month.
    • Ford (F) dropped -1% after Moody’s downgraded the company’s credit rating to “junk.”
    • Paypal (PYPL) fell -2% today after a -4% drop yesterday as traders continue to take profits in popular growth/momentum names.
    • Speaking of momentum names, Roku (ROKU) dumped -10% today and is now trading down nearly 20% from yesterday’s record high near $176.

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