Daily market review

United States

Equities were mixed with growth and big technology shares outperforming while the bulk of the market lagged, including most cyclical/value stocks. The Dow Jones industrial average eased 0.2 percent. Strength centered in technology and megacaps helped the S&P 500 rise 0.3 percent and NASDAQ gain 0.5 percent to set record highs.

Earnings news remained the focus with Nvidia, the chipmaker, up 8.3 percent after earnings and revenues beats. Apple gained 2.9 percent to help tech advance on news of faster progress on its autonomous vehicle.

Amazon gained 4.1 percent to lift consumer discretionary. Macy's surged 21 percent after earnings and revenues beats and better guidance to lead retailers. The results, along with a similar beat at Kohl's, up 11 percent, bolstered perceptions that consumer spending is robust headed into the holiday season. Home Depot rose 2.8 percent to bring its gains to 10 percent over the last five days.

On the downside, financials, materials, industrials, energy lagged. Airlines saw notable weakness, with United off 2.7 percent and American down 2.4 percent. Energy stocks came under pressure from falling oil prices, though oil recovered on bargain-hunting. Communications services were mostly lower on a selloff in media and entertainment stocks, but Google rose 1.1 percent.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 52 cents to US$81.16 while spot gold fell US$6.80 to US$1,860.47. The US dollar was mixed vs. major currencies. Yields on the US Treasury 30-year bond fell 1 basis point to 1.97 percent, and the 10-year note fell 1 basis point to 1.58 percent.


Weakness in banks, energy, and miners dampened European equities. The Europe-wide STOXX 600 and the UK FTSE 100 both slipped 0.5 percent while the German DAX and the French CAC both eased 0.2 percent.

Oil & gas shares declined with oil prices after China signaled willingness to heed US calls to tap petroleum reserves. Royal Dutch Shell declined by 1.9 percent. Miners lagged as industrials metals slipped, with Antofagasta off 2.1 percent. Banks slipped, with Commerzbank off 2.3 percent.

On the positive side, automakers were better on the view that parts shortages will ease soon, with Daimler up 2.2 percent after an analyst upgrade. Travel & leisure got a lift from M&A news, with Playtech, a gambling software company, up 3.8 percent after confirming it has received a takeover offer.

Among companies in focus, Thyssenkrupp, the industrial conglomerate, rose 5.6 percent on earnings and revenues beats. Royal Mail rose 9.2 percent after saying it will raise its dividend and buy back shares after a strong quarter. On the downside, Continental fell 3.4 percent after a management shakeup. Holcim, the building materials firm, fell 2.2 percent after launching its plan for greener growth.

Asia Pacific

Asian equities mostly weakened with Hong Kong off the most on a selloff in internet and technology shares.

China's CSI 300 index fell 1.0 percent, and the Shanghai composite lost 0.5 percent, with weakness centered in healthcare and real estate, while utilities and materials held up better.

Hong Kong's Hang Seng index dropped 1.3 percent with losses across the board. Disappointing results and lower guidance from Alibaba, down 5.3 percent, and Baidu, down 7.8 percent, led decliners in the e-commerce sector. Mainland oil & gas and real estate stocks lagged too.

A weaker showing on Wall Street and losses in resource stocks pushed down Japanese equities with the Nikkei 225 off 0.3 percent and the Topix down 0.1 percent. Banks and autos lagged too. Holding up better were glass & ceramics stocks and service providers.

South Korea's KOSPI fell 0.5 percent and Taiwan's Taiex benchmark rose 0.4 percent on carryover from Chinese market weakness.

Australia's All Ordinaries index firmed 0.1 percent on a mixed sector performance. Energy stocks fell as oil prices dropped on supply concerns. Banks extended their selloff after Wednesday's disappointing results from Commonwealth Bank of Australia, down another 1.6 percent Thursday. Real estate and telecom held up best.

Looking ahead*

In Asia/Pacific, the Japanese CPI report is scheduled. In Europe, French ILO unemployment, UK public sector borrowing, German PPI, and UK retail sales figures are due. In North America, Canadian retail sales are on tap.

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