The Dow Jones index finally joined the S&P 500 and Nasdaq indices in making a record high on Monday helped by shares in the Energy (+3.15%), Semiconductors & Semiconductor Equipment (+2.29%) and Transportation (+2.19%) sectors. The S&P 500 (3,078.27) stays above its 20d moving average (3,000.12 – positive slope) and 50d moving average (2,975.23 – positive slope).
On the economic data front, Durable Goods Orders released at -1.2%, lower than the -1.1% estimate for the September final reading, down from -1.1% in the prior reading. Factory Orders came in at -0.6%, just missing the -0.5% consensus for September, down from -0.1% the month before. On Tuesday, economists expect the Trade Balance to decrease to -52.4 billion dollars for September, down from -54.9 billion dollars in August and the Institute for Supply Management Non-Manufacturing Index is expected higher at 53.5 for October, compared to 52.6 in September.
European markets are expected to open on a positive note.
Foreign Exchange
The US dollar was bullish against all of its major pairs on Monday. On the economic data front, Durable Goods Orders released at -1.2%, lower than the -1.1% estimate for the September final reading, down from -1.1% in the prior reading. Factory Orders came in at -0.6%, just missing the -0.5% consensus for September, down from -0.1% the month before. On Tuesday, economists expect the Trade Balance to decrease to -52.4 billion dollars for September, down from -54.9 billion dollars in August and the Institute for Supply Management Non-Manufacturing Index is expected higher at 53.5 for October, compared to 52.6 in September.
The Euro was bearish against most of its major pairs with the exception of the NZD, GBP and JPY. In Europe, the Markit Eurozone Manufacturing Purchasing Managers Index was 45.9 in the October final reading, flat month over month, vs 45.7 in first reading. The Markit UK Construction Purchasing Managers Index increased to 44.2 in October (44.1 expected) vs 43.3 a month earlier.
The Australian dollar was bullish against most of its major pairs with the exception of the CAD and USD.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was about flat to $56.56. The contract was above its 20D MA (@ $54.58) and above its 50D MA (@ $55.23).
Gold was down $5 to $1509.4. The precious metal was above its 20D MA (@ $1496) and above its 50D MA (@ $1504).
Copper Future (DEC 19) on Comex was up 1.1c to 266.35c/lb. The contract was above its 20D MA (@ 263.79c) and above its 50D MA (@ 261.33c). In Europe, the London Metal Exchange reported its copper inventories decreased 3550 tons to 251475 tons.