Major averages hovered near unchanged yesterday, with the S&P closing up slightly after the Federal Reserve released minutes from its most recent meeting that reinforced the U.S central bank’s position to remain patient before raising rates. The major indexes held near unchanged for most of the day but the S&P 500 briefly climbed to a session high after the minutes, in which Fed officials said it would likely take “some time” for substantial further progress on goals of maximum employment and stable prices. But the gains were minor and short-lived, as many market participants question the ability to hold off on a rate hike for as long as the Fed has stated. The Fed has been more transparent all of this year about where they stand and they really are not budging from that stance. The yield on the benchmark 10-year U.S. Treasury note moved higher late in the session. Still, it remained below a 14-month high of 1.776% hit on March 30. The recent pullback in yields has helped growth names and lifted technology and communication services stocks on the day.
Dow Jones Industrial Average
The Dow Jones Industrial Average gained 0.05%. The biggest gainers of the session on the Dow Jones Industrial Average were JPMorgan Chase & Co, which rose 1.57% or 2.39 points to trade at 154.93 at the close. Apple Inc. added 1.34% or 1.69 points to end at 127.90 and Intel Corporation was up 1.04% or 0.68 points to 66.24 in late trade. Biggest losers included Walt Disney Company, which lost 1.15% or 2.18 points to trade at 187.55 in late trade. Boeing Co declined 1.03% or 2.62 points to end at 252.55 and Dow Inc. shed 0.91% or 0.59 points to 64.01.
NASDAQ 100
The NASDAQ index declined 0.07%. The top performers on the NASDAQ Composite were Bonso Electronics International Inc. which rose 45.06% to 9.945, Recon Technology Ltd which was up 19.11% to settle at 6.670 and Seelos Therapeutics Inc. which gained 17.78% to close at 5.830. The worst performers were FibroGen Inc. which was down 43.07% to 19.72 in late trade, Homology Medicines Inc. which lost 22.80% to settle at 7.18 and Kelly Services B Inc. which was down 15.67% to 32.89 at the close.
Oil
Crude prices fell today after official data showed a big increase in U.S gasoline stocks, sparking concerns about demand weakening in the world’s biggest oil consumer as crude supplies around the world rise. U.S oil fell 53 cents, or 0.9%, to $59.24 a barrel. While crude oil stocks in the United States fell more than forecast by analysts, gasoline inventories jumped sharply, also against expectations, the U.S Department of Energy said yesterday. Oil inventories dropped by 3.5 million barrels last week to nearly 502 million barrels, and gasoline stocks increased by 4 million barrels, against expectations of a decline, to just over 230 million barrels, as refiners ramped up production before the summer driving season. Refiners may want to pull back on the run rate a bit to keep gasoline storage from challenging the all-time record. At the same time, supply is rising across the world with Russian output increasing from average March levels in the first few days of April. Iran may see some sanctions lifted and add to global supplies.
Precious and Base Metals
Gold prices steadied after early falls today, as market participants weighed the U.S Federal Reserve's commitment to keep interest rates low for some time against likely higher inflation. Spot gold was flat at $1,737.89 per ounce. U.S gold futures fell 0.1% to $1,739.20 per ounce. Fed officials are committed to supporting the economy until its recovery is more secure, minutes of the U.S. central bank's most recent policy meeting released yesterday showed. The Fed was very assuring about its stand on interest rates, although investors are not convinced. Investors are expecting the Fed will have to hike interest rates as early as January 2022 as it becomes a huge task once inflation starts going out of control. Several policymakers at the Fed's March 16-17 meeting indicated they thought interest rates might need to increase sooner than anticipated by the bulk of their colleagues, and perhaps as soon as next year, the minutes showed. Non-yielding gold tends to fall out of favor when interest rates rise, as it increases the opportunity cost of holding bullion. Recent economic data have indicated a faster turnaround from the pandemic impacts and boosted risk assets. U.S stock futures nudged higher to hit a record today, weighing on gold's safe-haven appeal. In the near term, gold has support at $1,727 and $1,720 levels, followed by $1,705. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.35 tonne to 1,028.69 tonnes on Wednesday. Lending support to gold, the U.S dollar tracked Treasury yields lower and traded near a more than two-week low versus major peers today. Among other metals, silver fell 0.1% to $25.09 per ounce and palladium was down 0.3% to $2,614.98. Platinum rose 0.6% to $1,232.99.
Traditional Agricultures
Wheat futures gained yesterday, following the Minneapolis Grain Exchange’s hard red spring wheat higher on concerns that dryness across the U.S Great Plains could affect spring wheat plantings. Corn gained ahead of the U.S Department of Agriculture’s monthly supply and demand report on Friday, which is expected to show strong exports further drawing down corn stockpiles. Soybeans slid as the South American harvest progressed.
Source: - News & Quotes (Courtesy: Reuters)
Disclaimer
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
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