U.S. indices closed higher on Wednesday lifted by shares in the Automobiles & Components (+2.03%), Consumer Durables & Apparel (+1.42%) and Energy (+1.4%) sectors. U.S. crude inventories plummeted by 10 million barrels last week which sent oil stocks higher. Key stocks to watch on Thursday include Dollar General (DG), Dollar Tree (DLTR) and Best Buy (BBY) as they are anticipated to release earnings pre-market. The S&P 500 (2,887.94) stays below its 20d moving average (2,887.94 – negative slope) and its 50d moving average (2,945.64 – flat slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Wednesday. On the economic data front, MBA mortgage applications fell 6.2% last week after falling 0.9% in the prior week. Thursday will be a busy day for economic data as traders anticipate initial jobless claims to be at 216K for the week ending Aug 16 from a revised 221K in the prior reading. We can also expect GDP data and wholesale inventories at 8:30 am EST.
The Euro was bullish against all its major pairs except for the CHF. In Europe, the euro zone M3 money supply growth was 5.2% in July YoY (4.7% expected) vs 4.5% in June. The Germany GfK consumer confidence index was flat at 9.7 for September vs 9.6 anticipated.
The Australian dollar was mixed against all of its major pairs.
Commodities
After the close of Wall Street, WTI Crude Future (OCT 19) was up $1 to $55.92. The contract was above its 20D MA (@ $54.71) and below its 50D MA (@ $56.46). The US Department of Energy reported that, for the week ended 23 August, crude oil inventories fell 10027k barrels compared to the previous week.
Gold was down $3.6 to $1539.2. The precious metal was above its 20D MA (@ $1501) and above its 50D MA (@ $1449).
Copper Future (DEC 19) on Comex was up 2c to 257.3c/lb. The contract was below its 20D MA (@ 258.83c) and below its 50D MA (@ 265.75c). In Europe, the London Metal Exchange reported its copper inventories increased 725 tons to 334700 tons