US Markets Close Level as a Strong USD and a Looming Election Cool the Markets – 10th May 2016
05/10/2016

The major indexes in the US closed slightly higher yesterday as a strong USD and an election looming ever closes see the markets take stock and remain calm.

Online PR News – 10-May-2016 – Toronto, Ontario – Baumann Group
US Markets Close Level as a Strong USD and a Looming Election Cool the Markets – 10th May 2016

The major indexes in the US closed slightly higher yesterday as a strong USD and an election looming ever closes see the markets take stock and remain calm.

With the Fed still uncertain about a rate hike this year many commentators believe that the markets have already priced in the one rate increase they see happening this year. With the volatility in oil prices and supply having a significant effect on the energy sector the markets as a whole are managing to keep ahead of the losses seen earlier in the year.

The $USD gained against a basket of currencies yesterday most notably the JPY and EUR. The USD/JPY broke 108.42 in early morning trading Tuesday and the USD/EUR pulled back to 1.1388.

Now that earnings season is almost over, what was expected to be a poor performing quarter actually managed to come in stronger than expectations. Analysts were predicting a fall in earnings by as much as 6.7%/6.8% and has come in at just 5.5% across the board with revenues dropping 1.9%.

Yesterday saw the 2nd largest volume traded on the indexes for the year, a clear signal that although traders are cautious, they still see value in the equity markets as they look to avoid riskier asset classes such as commodities.

The NYSE had 1,407 advancers with 1,594 decliners. The NASDAQ saw 1,486 advancers with 1,322 stocks declining whilst 47 new 52 week highs were seen and 53 new lows. The S&P 500 had 33 new 52 week highs with just 4 new 52 week lows.

Key news yesterday in the Pharma sector had Allergan stock increase by 5.98% after they confirmed that the $40.5bn takeover of Teva should be completed by June. The deal continues to solidify the Pharmaceuticals sector as the hottest for M&A deals in the 2015/16 calendar.

The news helped the sector gain 1.13% yesterday whilst Energy & Materials fell 1.25% as lower gas prices and record stockpiles along with the huge fire in Alberta started to draw concern from energy traders.

In alternative energy, Elon Musk’s SolarCity posted worse than expected 1st quarter earnings which saw the stock fall over 13% after hours.

Major US Index Closes as of 9th May:
S&P 500 – 2,058.69 (+0.08%)
Dow Jones – 17,705.91 (-0.20%)
NASDAQ – 4,750.21 (+0.30%)

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