Market Brief: Retailers Weigh as Traders Digest Potentially Positive US-China Trade Talk
Matt Weller, CFA, CMT November 19, 2019 9:06 PM
See a summary of the top market themes and trends from today's US trading session!
View our guide on how to interpret the FX Dashboard.
- A slew of midday reports suggested that the US and China were using the “near-deal” from May as a template for a Phase One trade deal. While traders are frustrated with the low pace of progress, the fact that the sides are considering rolling back tariffs from the past six months could boost risk trades.
- UK election polls continue to show the conservatives with a strong lead over the Labour party heading into this evening’s televised debate.
- FX: The New Zealand dollar was the strongest currency on the day, boosted by the fifth consecutive rise the key Global Dairy Trade (GDT) price index. The loonie was the weakest major currency on the back of a drop in oil and a possibly dovish comment from the BOC’s Deputy Governor, who hinted at the central bank’s “room to maneuver.”
- Commodities: Oil dumped -3% on the day, while gold was essentially flat.
- US indices closed mixed on a generally quiet day as traders weighed weak retailer earnings against seemingly positive US-China trade talk.
- Health Care (XLV) was the strongest major sector today; Energy (XLE) brought up the rear.
- Stocks on the move:
- Retailer Home Depot (HD) dropped -5% after missing analysts’ expectations on total and same store sales; the company also lowered its full-year outlook. Rival Lowe’s (LOW, -1%) reports earnings tomorrow.
- Kohl’s Corporation (KSS) collapsed -20% after cutting its guidance for the rest of the year.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.