General Market Comment
US indices closed mixed on Thursday. Shares in the Diversified Financials (-1.69%), Insurance (-1.56%) and Banks (-1.18%) sectors were under pressure while shares in the Real Estate (+1.01%), Utilities (+0.94%) and Media (+0.66%) sectors ended on a positive note. On the economic data front, initial jobless claims decreased to 207K in the week ending July 14 (estimated 220K) from a revised 215K previously. Continuing claims increased to 1.75M in the week ending July 7 (anticipated 1.73M) from a revised 1.74M last week. In addition, the Philadelphia Fed index rose to 25.7 in July (estimated 21.5) from 19.9 in June. Finally, the Bloomberg consumer comfort index increased to 58.8 in the week ending July 15 from 58 in the prior week and the leading economic index rose by 0.5% in June (estimated +0.4%) after remaining unchanged in May. The S&P 500 (2,804.49) remains above its 20d moving average (2,759.76 – positive slope) and 50d moving average (2,749.24 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was mixed against its major pairs on Thursday. On the economic data front, initial jobless claims decreased to 207K in the week ending July 14 (estimated 220K) from a revised 215K previously. Continuing claims increased to 1.75M in the week ending July 7 (anticipated 1.73M) from a revised 1.74M last week. In addition, the Philadelphia Fed index rose to 25.7 in July (estimated 21.5) from 19.9 in June. Finally, the Bloomberg consumer comfort index increased to 58.8 in the week ending July 15 from 58 in the prior week and the leading economic index rose by 0.5% in June (estimated +0.4%) after remaining unchanged in May.
The Euro was bullish against its major pairs with exception of the JPY. In the UK, retail sales in June were down 0.5% from May vs +0.2% expected and +1.3% in the previous month.
The Australian dollar was bearish against its major pairs with exception of the CAD and the NZD.
Commodities
After the close of Wall Street, WTI Crude Future (AUG 18) was up $0.6 to $69.35. The contract was below its 20D MA (@ $71.09) and above its 50D MA (@ $69.29).
Gold was down $4.2 to $1223.4. The precious metal was below its 20D MA (@ $1249) and below its 50D MA (@ $1276). The 14d RSI below 30 (23.2) indicates gold was oversold.
Copper Future (SEP 18) on Comex was down 5.2c to 270.8c/lb. The contract was below its 20D MA (@ 287.69c) and below its 50D MA (@ 304.15c). The 14d RSI below 30 (21.28) indicates Copper Future (SEP 18) contract was oversold. In Europe, the London Metal Exchange reported its copper inventories decreased 875 tons to 256475 tons.