November Daily Review - 17/11
- Donald Herison
- English
- MARKETS NEWS
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Stocks: U.S. stock indexes opened higher on Tuesday as better-than-expected earnings from Wal-Mart (N:WMT) and Home Depot (N:HD) allayed fears of a retail slowdown after last week's sharp selloff in the sector.
The Dow Jones industrial average (DJI) rose 12.5 points, or 0.07 percent, to 17,495.51, the S&P 500 (SPX) gained 1.34 points, or 0.07 percent, to 2,054.53 and the Nasdaq Composite index (IXIC) added 6.70 points, or 0.13 percent, to 4,991.32.
Commodities: Oil prices fell on Tuesday, erasing gains linked to security fears after the Paris attacks, as investor focused again on the global oversupply in crude and petroleum products that is showing no signs of abating.
Analysts said that despite the deadly Paris attacks and French retaliation against Islamic State (IS) in Syria, prices would remain low for the rest of the year and into 2016 as oil markets stay oversupplied.
Forex: The dollar continued to hover at seven-month highs against the other major currencies on Tuesday, after upbeat U.S. inflation data added to hopes that the Federal Reserve will raise interest rates at its meeting next month.
USD/JPY edged up 0.12% to one-week highs of 123.32.
Economic Indicators:U.S. consumer prices increased in October after two straight months of declines as the cost of gasoline and a range of other goods rose.
The Commerce Department said the consumer price index rose 0.2% last month, in line with economists' forecasts. The modest uptick in inflation could offer more support to expectations that the Federal Reserve will hike interest rates next month.
Economic Indicators: Industrial production in the U.S. fell for the third straight month in October, dampening optimism over the health of the economy, official data showed on Tuesday.
In a report, the Federal Reserve said that industrial production decreased by a seasonally adjusted 0.2% last month, disappointing expectations for a gain of 0.1%. Industrial production fell by 0.2% in September. Meanwhile, manufacturing production rose by a seasonally adjusted 0.4%, beating forecasts for a 0.2% increase and following a decline of 0.1% in September.
The report also showed that the capacity utilization rate, a measure of how fully firms are using their resources, dipped to 77.5% in October from 77.7% a month earlier, in line with expectations.
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