Daily global market review

In today's trading session, buyer confidence appeared to be lacking, resulting in mixed outcomes for major stock indices. The Dow Jones Industrial Average managed to eke out a modest gain, while the S&P 500, Nasdaq Composite, and Russell 2000 experienced declines of 0.3%, 0.9%, and 1.0%, respectively.

Apple (AAPL) continued its downward trend, contributing to the overall market's negative sentiment. This decline followed a Bloomberg report indicating that China is considering extending its ban on iPhones to state and federal agencies. The news had a ripple effect on semiconductor stocks, leading to a 2.0% drop in the PHLX Semiconductor Index.

Beyond Apple and semiconductor stocks, there is growing concern in the market. If China deliberately makes business operations difficult for a company like Apple, which has a significant and positive relationship with China, it raises questions about the potential impact on other U.S. companies conducting business in China. Interestingly, these restrictions come at a time when The Wall Street Journal reported that Huawei has introduced a new smartphone to compete with Apple.

The S&P 500 information technology sector saw the most substantial decline, down 1.6%, primarily due to the weakness in Apple and its semiconductor components. Conversely, the utilities sector surged by 1.3%, leading the way in today's market performance.

Investors closely monitored developments in the Treasury market, which experienced some turbulence during the day. Yields initially declined after China reported an 8.8% year-over-year drop in exports and a 7.3% year-over-year decrease in imports for August. However, yields spiked higher at 8:30 a.m. ET when it was revealed that initial jobless claims for the week ending September 2 were at a historic low of 216,000, the lowest since February. Additionally, Q2 productivity was revised lower to 3.5% from 3.7%, while unit labor costs were revised higher to 2.2% from 1.6%.

These reports collectively suggest that the Federal Reserve may be inclined to keep policy rates higher for an extended period. The Treasury market eventually stabilized after an initial burst of selling, relieving some of the early selling pressure on stocks.

In the Treasury market, the 2-year note yield, initially at 4.99%, briefly reached 5.05% but settled at 4.96%. Meanwhile, the 10-year note yield, starting at 4.27%, momentarily hit 4.31% before settling at 4.26%.

WTI crude oil futures ended the day down 0.7% at $86.97 per barrel, breaking a nine-day winning streak.

Reviewing today's economic data:

• Weekly Initial Claims came in at 216,000, beating the consensus estimate of 233,000. The previous week's figure was revised to 229,000 from 228,000. Weekly Continuing Claims stood at 1.679 million, with the prior week's figure revised to 1.719 million from 1.725 million. This report signifies the lowest level of initial claims since February, suggesting a strong economic outlook that may keep the Federal Reserve in a restrictive policy stance for an extended period.
• Q2 Productivity was revised to 3.5% from the consensus estimate of 3.7%. Unit Labor Costs were revised higher to 2.2% from the consensus estimate of 1.6%. While unit labor costs appear disappointing at the headline level, they still align with disinflationary trends compared to a year ago when they were up 2.5%.

In summary, today's market activity was influenced by elevated Treasury yields, fluctuating oil prices, and the ongoing decline in Apple. The news of China potentially broadening its ban on iPhones raised concerns about business operations for other U.S. companies in China. Additionally, market participants closely monitored developments in the Treasury market, which saw yields fluctuate in response to economic data releases.

In the financial markets today, various indices and assets exhibited mixed performance. In the United States, the Dow Jones Industrial Average closed at 34,500.73, marking a gain of 57.54 points or 0.17%, while the S&P 500 ended at 4,451.14, showing a decrease of 14.34 points or 0.32%. The NASDAQ Composite also experienced a decline of 123.64 points or 0.89%, closing at 13,748.83, while the VIX volatility index closed at 14.40, with a minor decrease of 0.05 points or 0.35%. In Canada, the S&P/TSX Composite closed at 20,132.08, down by 94.88 points or 0.47%, and the S&P/TSX 60 ended at 1,206.55, showing a decrease of 5.24 points or 0.43%. In Brazil, the BOVESPA index closed at 115,985.34, marking a decline of 1,345.96 points or 1.15%. Chile's S&P IPSA closed at 5,885.52, down by 20.22 points or 0.34%, while Mexico's S&P/BMV IPC decreased by 488.22 points or 0.92%, closing at 52,482.97.

Across Europe, the STOXX Europe 50 index closed at 3,948.12, with a gain of 9.78 points or 0.25%, while the STOXX Europe 600 showed a decrease of 0.63 points or 0.14%, closing at 453.67. In the United Kingdom, the FTSE 100 closed at 7,441.72, with a gain of 15.58 points or 0.21%, while Italy's FTSE MIB showed a decrease of 55.88 points or 0.20%, closing at 28,155.58. France's CAC 40 ended at 7,196.10, marking a minor increase of 2.01 points or 0.03%.

In Asian markets, Japan's Nikkei 225 closed at 32,991.08, showing a decrease of 249.94 points or 0.75%, while Hong Kong's Hang Seng decreased by 247.91 points or 1.34%, closing at 18,202.07. China's Shanghai Composite exhibited a decline of 35.72 points or 1.13%, closing at 3,122.35, and Australia's S&P/ASX 200 ended at 7,171.00, down by 86.10 points or 1.19%. South Korea's KOSPI showed a decrease of 15.08 points or 0.59%, closing at 2,548.26, while Taiwan's Taiwan SE index closed at 16,619.14, marking a decrease of 119.02 points or 0.71%.

In the Indian stock market, a range of indices exhibited varying degrees of performance. Among these indices, the BSE MidCap index stood out with the highest gain, showing an increase of 0.79%, equivalent to 252.87 points. On the other hand, the BSE SmallCap index posted the lowest gain at 0.40%, representing a rise of 152.60 points. These indices, which encompass mid-sized and smaller companies, can be influenced by factors specific to their market segments. In contrast, broader market indices also demonstrated positive gains on the same trading day. The BSE Sensex, reflecting the performance of large-cap stocks, increased by 0.58%, or 385.04 points, while the Nifty 50, another prominent benchmark, rose by 0.59%, or 116.00 points. Additionally, other indices like the Nifty Midcap 100, Nifty Smallcap 100, and Nifty Smallcap 50 exhibited varying degrees of growth, contributing to the overall positive sentiment in the Indian stock market. Moreover, sector-specific indices such as the S&P BSE ALLCAP, S&P BSE-100, S&P BSE-200, and S&P BSE-500 also participated in the bullish trend, recording gains ranging from 0.57% to 0.59%.

TSLA - Tesla, Inc.:

• Tesla, Inc. is currently trading at $251.49, witnessing a decrease of $0.43, which represents a 0.17% decline.
• The trading volume for Tesla's stock stands at 115 million shares, and its 52-week price range spans from $101.81 to $313.80.

AAPL - Apple Inc.:

• Apple Inc. is valued at $177.56, showing a decrease of $5.35, translating to a 2.92% drop.
• The trading volume for Apple's stock is approximately 112 million shares, and its 52-week price range extends from $124.17 to $198.23.

KVUE - Kenvue, Inc.:

• Kenvue, Inc. is currently priced at $20.99, experiencing a decrease of $1.39, reflecting a 6.21% decline.
• The trading volume for Kenvue's stock is around 103 million shares, and its 52-week price range oscillates between $20.96 and $27.80.

INTC - Intel Corporation:

• Intel Corporation's stock is valued at $38.18, showcasing an increase of $1.20, equivalent to a 3.24% gain.
• The trading volume for Intel is approximately 68 million shares, and its 52-week price range ranges from $24.59 to $38.34.

PLTR - Palantir Technologies Inc. Class A:

• Palantir Technologies Inc. Class A stock is currently priced at $15.21, with a minor decrease of $0.09, representing a 0.59% decline.
• The trading volume for Palantir's stock is approximately 52 million shares, and its 52-week price range spans from $5.92 to $20.24.

AMD - Advanced Micro Devices, Inc.:

• Advanced Micro Devices, Inc. (AMD) is trading at $106.59, showing a decrease of $2.69, equivalent to a 2.46% drop.
• The trading volume for AMD's stock is 49 million shares, and its 52-week price range extends from $54.57 to $132.83.

AMZN - Amazon Inc.:

• Amazon Inc. (AMZN) is currently priced at $137.85, experiencing an increase of $2.49, which represents a 1.84% gain.
• The trading volume for Amazon's stock is approximately 48 million shares, and its 52-week price range ranges from $81.43 to $143.63.

AMC - AMC Entertainment Holdings, Inc. Class A:

• AMC Entertainment Holdings, Inc. Class A stock is trading at $8.12, with a decrease of $0.50, indicating a 5.80% decline.
• The trading volume for AMC's stock is approximately 47 million shares, and its 52-week price range spans from $7.71 to $94.85.

CHPT - ChargePoint Holdings, Inc. Class A:

• ChargePoint Holdings, Inc. Class A stock is currently priced at $6.29, witnessing a decrease of $0.77, which represents a 10.91% drop.
• The trading volume for ChargePoint's stock is around 45 million shares, and its 52-week price range oscillates between $4.96 and $19.92.

NIO - NIO Inc. Sponsored ADR Class A:

• NIO Inc. Sponsored ADR Class A stock is priced at $10.08, showing a decrease of $0.50, translating to a 4.73% drop.
• The trading volume for NIO's stock is approximately 44 million shares, and its 52-week price range ranges from $7.00 to $22.74.

In the realm of cryptocurrencies, the Nasdaq Crypto Index closed at 1,516.50, showing a gain of 22.95 points or 1.54%. Bitcoin's price stood at 26,233.00, reflecting an increase of 469.00 points or 1.82%, while Ether closed at 1,647.50, with a gain of 14.60 points or 0.89%. Litecoin showed a minor increase of 0.71 points or 1.13%, closing at 63.52, and XRP remained relatively stable at 0.50, with a marginal gain of 0.00 points or 0.19%.

Lastly, in the realm of bonds and rates, there were fluctuations in yields. The 3 Month Treasury yield stood at 5.303% with no change, while the 2 Year Treasury yield showed a decrease of 0.088 points, closing at 4.949%. The 5 Year Treasury yield decreased by 0.076 points, ending at 4.375%, and the 10 Year Treasury yield showed a decrease of 0.058 points, closing at 4.246%. The 30 Year Treasury yield decreased by 0.030 points, closing at 4.340%.

In the currency markets, the Euro/US Dollar exchange sits at 1.0698. The British Pound/US Dollar exchange rate showed a minor increase of 0.01%, closing at 1.2474. The US Dollar/Canadian Dollar exchange rate decreased by 0.01%, closing at 1.3683, while the US Dollar/Swiss Franc is at 0.8928. The US Dollar/Japanese Yen exchange rate showed a marginal decrease, closing at 147.2870.

The Bloomberg Commodity Index (BCOMTR) closed at 239.29, reflecting a decrease of 0.81 points or a 0.34% drop from its previous value, with the day's high and low recorded at 240.27 and 238.81, respectively. Similarly, the UBS Bloomberg CMCI (CMCITR) experienced a decrease of 3.00 points, amounting to a 0.19% decline, closing at 1,560.80, with its daily high and low standing at 1,563.08 and 1,557.68.

The Reuters/Jefferies CRB (CRYTR) index exhibited a 0.32% decrease, dropping by 1.04 points to close at 318.80, with the high and low points at 319.84 and 318.80. Meanwhile, the Rogers International Index (RICIGLTR) decreased by 18.11 points or 0.47%, closing at 3,866.00, with a daily high of 3,881.47 and a low of 3,860.78.

Moving on to energy commodities, WTI Crude Oil (CL1:COM) traded at $86.87 per barrel, reflecting a decrease of $0.67 or 0.77% for the October 2023 contract. Brent Crude (CO1:COM) stood at $89.76 per barrel, down by $0.84 or 0.93% for the November 2023 contract. RBOB Gasoline (XB1:COM) saw an increase of $2.16 or 0.83%, closing at $262.30 per gallon for the October 2023 contract. Natural Gas (NG1:COM) experienced a notable rise of $0.07 or 2.75%, closing at $2.58 per MMBtu for the October 2023 contract. Finally, Heating Oil (HO1:COM) ended at $321.23 per gallon, marking an increase of $1.96 or 0.61% for the October 2023 contract.

Shifting focus to precious and industrial metals, Gold (GC1:COM) was valued at $1,942.50 per troy ounce, showing a decrease of $1.70 or 0.09% for the December 2023 contract. Gold Spot (XAUUSD:CUR) registered a gain of $3.12 or 0.16%, closing at $1,919.68 per troy ounce. Silver (SI1:COM) recorded a decline of $0.26 or 1.12%, closing at $23.24 per troy ounce for the December 2023 contract. Copper (HG1:COM) fell by $2.40 or 0.63%, closing at $376.20 per pound for the December 2023 contract. Meanwhile, Platinum Spot (XPTUSD:CUR) showed a minor gain of $0.34 or 0.04%.

Lastly, in the agriculture sector, Corn (C 1:COM) closed at $486.25 per bushel, marking a $0.50 increase or 0.10% gain for the December 2023 contract. Wheat (W 1:COM) decreased by $9.25 or 1.52%, closing at $599.75 per bushel for the December 2023 contract. Cocoa (CC1:COM) fell by $40.00 or 1.10%, closing at $3,612.00 per metric ton for the December 2023 contract. Cotton #2 (CT1:COM) recorded a decline of $1.62 or 1.86%, closing at $85.38 per pound for the December 2023 contract. Lastly, Live Cattle (LC1:COM) witnessed a gain of $0.95 or 0.52%, closing at $183.65 per pound for the October 2023 contract.

On September 8, 2023, several significant economic data releases are scheduled. These events encompass Wholesale Inventories, Baker Hughes Rig Count across various regions, and the Consumer Credit report, all impacting the financial landscape in different ways. These releases provide valuable insights into economic trends and are closely monitored by market participants. While their specific outcomes are eagerly awaited, they are expected to have varying degrees of influence on market sentiment and performance.

• Technology Stocks May Face Continued Pressure: The ban on Apple iPhones and foreign-branded devices for Chinese government employees is likely to impact the technology sector, including Apple's stock. This situation underscores the ongoing tension between China and the U.S. regarding technology, potentially leading to further volatility in technology stocks. Investors should closely monitor developments in this space, as they can affect the broader stock market.
• Increased Market Volatility: The recent data suggests that market volatility has been elevated in September, with the VIX volatility index up about 7%. This trend may continue in the near term, particularly if there are more developments related to China-U.S. relations, trade, and technology policies. Traders and investors should be prepared for fluctuations in equity markets.
• Focus on Inflation: With the upcoming release of CPI inflation data for August in the U.S., it's anticipated that headline inflation will rise to 3.6% year-over-year. This could be influenced by factors such as higher oil prices and easier year-over-year comparisons. However, core inflation is expected to move lower to 4.3%. If this trend continues, it may be seen as a positive development for markets and the Federal Reserve, as it could alleviate concerns about sustained high inflation.
• Market Reaction to Inflation Data: When the inflation data is released, financial markets may react based on the extent to which it aligns with or deviates from expectations. A higher-than-expected increase in inflation could lead to concerns about the Federal Reserve's monetary policy, potentially impacting bond yields and stock prices. Conversely, if core inflation continues to trend lower as predicted, it could provide some stability to the markets.
• De-globalization Theme Persists: The ongoing back-and-forth between China and the U.S. regarding technology and cybersecurity highlights the theme of de-globalization. Both countries are emphasizing domestic technology and innovation development, which could have implications for global supply chains and trade. Investors should watch for further developments in this area as it can impact multinational companies and international markets.