US indices closed relatively flat on Thursday amid the busiest earnings release day of the quarter. Shares in the Software & Services (+2.15%), Semiconductors & Semiconductor Equipment (+2.01%) and Household & Personal Products (+1.22%) sectors traded higher while shares in the Automobiles & Components (-3.13%), Telecommunication Services (-1.46%) and Health Care Equipment & Services (-0.64%) sectors were under pressure. The S&P 500 (3,010.29) remains above its 20d moving average (2,962.09 – positive slope) and 50d moving average (2,953.76 – positive slope).
The U.S. Commerce Department reported that durable good orders fell 1.1% on month in September (-0.7% expected). The Markit U.S. manufacturing purchasing managers’ index posted 51.5 (preliminary) in October (50.9 expected, 51.1 in September). New home sales dropped to an annualized rate of 701,000 in September (702,000 units expected, 706,000 units in August). The Labor Department said initial jobless claims declined to 212,000 (215,000 expected) for the week ended October 19 from 218,000 in the prior week.
Later today, economists expect the University of Michigan Consumer Sentiment Index to be flat at 96 in October.
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against most of its major pairs on Thursday, with the exception of the JPY. On the economic data front, Durable Good Orders fell 1.1%, more than the 0.7% estimate for the September preliminary reading, down from a revised 0.3% rise in the prior reading. Markit US Manufacturing Purchasing Managers’ Index rose to 51.5, beating the 50.9 estimate for the October preliminary reading, up from 51.1 in the prior reading. New Home Sales dropped to 701K, slightly lower than the 702K estimate for September, down from a revised 706K in August. Initial Jobless Claims declined to 212K, which was lower than the 215K estimate for the week ending October 19th, down from a revised 218K the week before. Continuing Claims released at 1682K, which was above the 1678K estimate for the week ending October 12th, down from a revised 1683K in the prior week. On Friday, economists expect the University of Michigan Consumer Sentiment Index to release at 96, in line with the prior month for the October final reading.
The Euro was mixed against all of its major pairs. In Europe, the ECB kept its main benchmark interest rate at 0%. Mario Draghi, ECB president, said that risks to the economic outlook remain on the downside. Separately ,the euro-zone manufacturing PMI was flat at 45.7 in October in first reading (46 expected). PMI services index increased to 51.8 from 51.6 in September. It was anticipated to be 51.9.
The Australian dollar was bearish against most of its major pairs with the exception of the NZD and GBP.
Commodities
After the close of Wall Street, WTI Crude Future (DEC 19) was about flat to $56.17. The contract was above its 20D MA (@ $53.76) and above its 50D MA (@ $55.07).
Gold was up $11.3 to $1503.4. The precious metal was above its 20D MA (@ $1493) and below its 50D MA (@ $1505).
Copper Future (DEC 19) on Comex was about flat to 266.7c/lb. The contract was above its 20D MA (@ 260.34c) and above its 50D MA (@ 260.13c). In Europe, the London Metal Exchange reported its copper inventories decreased 4275 tons to 265250 tons.