Daily global market review

The major indices displayed a somewhat mixed performance with below-average volume at the NYSE. Market activity lacked strong conviction, a pattern commonly observed during late-summer trading and consolidation efforts. Declining stocks held a slight lead over advancing ones, with both the NYSE and Nasdaq reflecting this trend. The leadership of mega-cap stocks played a significant role in driving index gains, particularly benefiting the S&P 500 and Nasdaq. The Vanguard Mega Cap Growth ETF (MGK) rose by 1.2%, contributing to the market-cap weighted S&P 500's 0.6% increase. Conversely, the Invesco S&P 500 Equal Weight ETF (RSP) closed without notable changes. Among the S&P 500 sectors, six out of eleven closed without substantial shifts. The utilities (-0.8%) and real estate (-0.5%) sectors experienced the most significant declines, while the information technology sector (+1.9%) claimed the top spot. This surge was supported by a substantial increase in NVIDIA (NVDA 437.53, +28.98, +7.1%) following its designation as a Top Pick by Morgan Stanley, just ahead of its upcoming earnings report.

The materials sector (+0.2%) settled in the middle range, despite notable gains in Steel Dynamics (STLD 107.65, +5.35, +5.2%) and Nucor (NUE 172.04, +5.52, +3.3%). These gains followed news that Cleveland-Cliffs (CLF 15.98, +1.29, +8.8%) made a bid to acquire its steelmaking competitor, US Steel (X 31.08, +8.36, +36.8%). Stocks faced some pressure as Treasury yields increased. The 2-year note yield rose by eight basis points to 4.97%, while the 10-year note yield increased by two basis points to 4.18%. The U.S. Dollar Index also climbed by 0.3%, reaching 103.18. The day's economic calendar included various events, such as July Retail Sales, Retail Sales ex-auto, July Import Prices, Import Prices ex-oil, Export Prices, Export Prices ex-ag., and August Empire State Manufacturing. Additionally, June Business Inventories and August NAHB Housing Market Index were scheduled. Later, the June Net Long-Term TIC Flows data was expected.

Throughout the day, the NYSE saw 1148 advancing stocks against 1694 declining ones, with a trading volume of 814 million. Similarly, the Nasdaq had 1809 advancing stocks and 2601 declining ones, with a trading volume of 4.2 billion. In terms of industry performance, Information Technology, Communication Services, Consumer Discretionary, and Health Care exhibited strength, while Utilities, Energy, Real Estate, and Consumer Staples showed weakness. The market movement was influenced by factors such as Treasury yields retracting from session highs, limited participation consistent with late-summer trading, ongoing consolidation efforts, and a buy-the-dip interest in mega-cap stocks, providing some support to the broader market.

In the United States, the Dow registered a slight increase of 26.23 points, reflecting a 0.07% change, while the S&P 500 saw a more notable gain of 25.67 points, signifying a 0.58% increase. The NASDAQ surged by 143.48 points, resulting in a significant 1.05% rise. The VIX, indicating market volatility, decreased slightly by 0.02 points, reflecting a 0.13% drop. The Russell 2000 experienced a minor decrease of 4.62 points, marking a 0.24% decline.

In Canada, the S&P/TSX Composite decreased by 117.03 points, accounting for a 0.57% decrease, while the S&P/TSX 60 fell by 7.58 points, signifying a 0.62% drop. The BOVESPA in Brazil encountered a larger decrease of 1,255.59 points, indicating a 1.06% decline. In Chile, the S&P IPSA saw a decrease of 39.80 points, reflecting a 0.64% drop. Meanwhile, in Mexico, the S&P/BMV IPC increased by 49.28 points, representing a 0.09% rise.

Moving to Europe, the STOXX Europe 50 increased by 7.44 points, reflecting a 0.19% gain, while the STOXX Europe 600 experienced a slight increase of 0.69 points, signifying a 0.15% rise. In the United Kingdom, the FTSE 100 decreased by 17.01 points, marking a 0.23% drop. Conversely, the FTSE MIB in Italy rose by 160.75 points, accounting for a 0.57% increase, and the CAC 40 in France increased by 8.65 points, indicating a 0.12% rise.

Shifting to Asian markets, Japan's Nikkei 225 experienced a decrease of 413.74 points, marking a 1.27% decline, while Hong Kong's Hang Seng index saw a larger decrease of 301.64 points, signifying a 1.58% drop. China's Shanghai Composite decreased by 10.82 points, accounting for a 0.34% decline. In Australia, the S&P/ASX 200 fell by 63.10 points, reflecting a 0.86% decrease, and South Korea's KOSPI decreased by 20.39 points, representing a 0.79% drop. Taiwan's SE index also saw a decrease of 207.59 points, marking a 1.25% decline.

The recent market data reflects the performance of various indices in the Indian stock market on August 14th. The BSE MidCap index closed at 30,296.88, experiencing a decrease of -0.44%, or -132.68 points. Similarly, the BSE Sensex ended at 65,401.92 with a gain of +0.12%, equivalent to +79.27 points. The BSE SmallCap index displayed a decline of -0.50%, or -177.40 points, closing at 35,113.21. The India VIX, indicating market volatility, increased by +4.10%, or +0.4725 points, to reach 11.9950. Among the other notable indices, the Nifty Midcap 100 closed at 37,770.20, exhibiting a decrease of -0.17%, or -65.95 points. The Nifty Smallcap 100 displayed a decrease of -0.73%, or -85.95 points, settling at 11,662.40. The Nifty Smallcap 50 index experienced a decrease of -0.47%, or -25.45 points, closing at 5,335.05. Conversely, the Nifty 50 index demonstrated a slight gain of +0.03%, equivalent to +6.25 points, to conclude at 19,434.55. The highest gainer among these indices was the Nifty 50 Value 20, which increased by +0.13%, or +13.00 points, to reach 10,048.85. On the other hand, the Nifty Next 50 index exhibited the largest decrease of -1.25%, or -557.95 points, ending at 44,008.75.

AMC: The price of AMC Entertainment Holdings, Inc. Class A is 3.39, showing a decrease of 1.87 with a percentage change of 35.55%. The trading volume is 132 million, and the 52-week range is between 3.18 and 16.71.

X: United States Steel Corporation's stock price is 31.08, marking an increase of 8.36, reflecting a percentage change of 36.80%. The trading volume is 112 million, and the 52-week range is from 17.89 to 32.52.

TSLA: Tesla, Inc. shares are priced at 239.76, showing a decrease of 2.89, with a percentage change of 1.19%. The trading volume is 98 million, and the 52-week range spans from 101.81 to 314.67.

KVUE: Kenvue, Inc.'s stock is valued at 22.94, indicating a decrease of 0.78, with a percentage change of 3.29%. The trading volume is 89 million, and the 52-week range is between 22.49 and 27.80.

NVDA: NVIDIA Corporation's stock price stands at 437.53, reflecting an increase of 28.98, with a percentage change of 7.09%. The trading volume is 68 million, and the 52-week range spans from 108.13 to 480.88.

NIO: NIO Inc. Sponsored ADR Class A's stock is priced at 12.52, showing a decrease of 0.38, with a percentage change of 2.95%. The trading volume is 67 million, and the 52-week range is between 7.00 and 22.74.

JNJ: Johnson & Johnson's stock price is 173.44, with a decrease of 0.41, indicating a percentage change of 0.24%. The trading volume is 64 million, and the 52-week range is from 150.11 to 181.04.

AMD: Advanced Micro Devices, Inc. shares are priced at 111.98, showing an increase of 4.41, with a percentage change of 4.10%. The trading volume is 57 million, and the 52-week range is between 54.57 and 132.83.

F: Ford Motor Company's stock price is 12.20, reflecting an increase of 0.06, with a percentage change of 0.49%. The trading volume is 48 million, and the 52-week range is from 10.90 to 16.68.

PLTR: Palantir Technologies Inc. Class A's stock is valued at 15.72, indicating an increase of 0.31, with a percentage change of 2.01%. The trading volume is 47 million, and the 52-week range spans from 5.92 to 20.24.

In the world of cryptocurrencies, the Nasdaq Crypto Index experienced a decrease of 2.08 points, reflecting a 0.12% drop. Bitcoin saw a modest increase of 74.00 points, signifying a 0.25% rise, while Ether rose by 3.40 points, accounting for a 0.18% increase. Litecoin saw a minor increase of 0.05 points, indicating a 0.06% rise, and XRP remained stable with no change in its value.

Turning to bonds and rates, the yields on various Treasury bonds experienced changes. The 3 Month Treasury yield increased by 0.005 percentage points to 5.290%. The 2 Year Treasury yield saw a more significant increase of 0.072 percentage points to 4.969%, and the 5 Year Treasury yield increased by 0.062 percentage points to 4.372%. The 10 Year Treasury yield increased by 0.038 percentage points to 4.204%, while the 30 Year Treasury yield rose by 0.027 percentage points to 4.299%.

Lastly, in currency markets, there were changes in exchange rates. The Euro to US Dollar rate decreased by 0.01 points, reflecting a 0.54% drop. The British Pound to US Dollar rate decreased slightly marking a 0.11% decline. The US Dollar to Canadian Dollar rate saw a minor increase, indicating a 0.13% rise. The US Dollar to Swiss Franc rate also experienced a slight increase, representing a 0.17% rise. The US Dollar to Japanese Yen rate increased by 0.55 points, signifying a 0.38% rise.

In the commodities market, the Bloomberg Commodity index closed at 236.39, marking a decrease of 0.99 or -0.42% in value. Similarly, the UBS Bloomberg CMCI index showed a decline of 7.46 points or -0.49%, settling at 1,527.23. The Reuters/Jefferies CRB index experienced a decrease of 1.69 points or -0.54%, resulting in a value of 311.32. Meanwhile, the Rogers International index closed at 3,782.31 after a decline of 29.02 points or -0.76%.

In the energy sector, the prices of various commodities fluctuated. WTI Crude Oil (Nymex) saw a decrease of 0.66 USD/bbl., or -0.79%, closing at 82.53 USD/bbl. for the September 2023 contract. Brent Crude (ICE) followed suit, declining by 0.57 USD/bbl. or -0.66% to reach 86.24 USD/bbl. for the October 2023 contract. RBOB Gasoline (Nymex) experienced a notable decrease of 5.83 USd/gal. or -1.97%, ending at 290.66 USd/gal. for the September 2023 contract. In contrast, Natural Gas (Nymex) exhibited an increase of 0.04 USD/MMBtu or +1.37%, concluding at 2.81 USD/MMBtu for the September 2023 contract. Heating Oil (Nymex) recorded a decline of 4.30 USd/gal. or -1.38%, settling at 307.85 USd/gal. for the September 2023 contract.

Moving to the precious and industrial metals sector, Gold (Comex) experienced a decrease of 7.00 USD/t oz. or -0.36%, reaching 1,939.60 USD/t oz. for the December 2023 contract. Similarly, Gold Spot prices declined by 6.38 USD/t oz. or -0.33% to stand at 1,907.38 USD/t oz. Silver (Comex) displayed a slight decrease of 0.09 USD/t oz. or -0.41%, closing at 22.65 USD/t oz. for the September 2023 contract. Copper (Comex) showed a positive movement with an increase of 0.75 USd/lb. or +0.20%, reaching 372.65 USd/lb. for the September 2023 contract. Platinum Spot prices experienced a decrease of 11.22 USD/t oz. or -1.22%, settling at 904.85 USD/t oz.

Finally, in the agriculture sector, Corn (CBOT) prices decreased by 0.50 USd/bu. or -0.10%, closing at 486.75 USd/bu. for the December 2023 contract. Wheat (CBOT) saw a significant decline of 14.25 USd/bu. or -2.18%, reaching 639.50 USd/bu. for the December 2023 contract. Cocoa (ICE) exhibited an increase of 40.00 USD/MT or +1.19%, settling at 3,397.00 USD/MT for the December 2023 contract. Cotton #2 (ICE) experienced a decrease of 1.42 USd/lb. or -1.62%, closing at 86.47 USd/lb. for the December 2023 contract. Live Cattle (CME) displayed a decline of 0.75 USd/lb. or -0.41%, concluding at 180.58 USd/lb. for the October 2023 contract.

Here is the upcoming economic data scheduled for release tomorrow:

At 8:30 AM ET, the Empire State Manufacturing Index, which is an index measuring manufacturing activity, will be released with a medium level of impact. Following that, Retail Sales data, both including and excluding vehicles and gas, will also be reported at the same time with a high level of impact. Import and Export Prices data, including both month-over-month and year-over-year figures, will be available at 8:30 AM ET as well, with a medium level of impact.

Moving on, the Housing Market Index, an index measuring the sentiment of home builders, will be released at 10:00 AM ET with a medium level of impact. Also at 10:00 AM ET, Business Inventories data will be reported, showing the change in inventories month over month, with a medium level of impact.

Finally, at 4:00 PM ET, the Treasury International Capital data, specifically focusing on net long-term securities transactions, will be available with a medium level of impact. Please note that the specific values and figures for each of these data releases are not provided here.

• Equity Market Movement: The equity markets experienced a muted day following a down week. The S&P 500 closed higher, while the TSX lagged due to lower commodity prices. The focus remains on the recent rise in interest rates and the economy's resilience. The stock market's recent rally was driven by the technology, communications, and consumer discretionary sectors, but there has been a defensive shift in August, with healthcare, utilities, and energy stocks performing well.
• Interest Rates: Interest rates have increased, with the 10-year Government of Canada bond yield near 3.7% and the 10-year Treasury yield just below 4.2%. Despite moderating inflation, the strong economy and the expectation of a prolonged central-bank policy stance are pushing rates higher.
• Consumer Outlook: The upcoming focus is on the state of the consumer. Canada's consumer price index (CPI) report and the U.S. retail sales report for July will be released, along with earnings reports from key retailers like Home Depot, Target, and Walmart. Healthy retail spending is anticipated due to robust summer travel and leisure activity. Despite tightness in the labor market, household spending growth is expected to slow in the second half of the year, leading to softer overall GDP growth compared to the strong performance in the first half of 2023.
• China's Economic Situation: Data indicates sluggish activity in the Chinese economy, with signs of disinflation and potential deflation in consumer prices. Financial troubles at a major Chinese property developer have triggered a sell-off in real estate stocks and raised concerns about broader weaknesses in China's economy. Expectations of monetary and fiscal stimulus from Chinese policymakers are likely to increase. China's central bank is anticipated to keep rates unchanged during its announcement, with growing discussions around potential stimulus measures.