Market Insights 2/10/2020

It was a quiet day in the headlines, but equities continued to march upward following last week’s gains.

Treasury yields fell on the day. Crude oil prices were lower, while gold and the U.S. dollar were higher. Global equities finished mixed.

The Markets…

The Dow Jones Industrial Average added 174 points (0.6%) to 29,277

The S&P 500 rose 24 points (0.7%) to 3,352

The NASDAQ rose 108 points (1.1%) to 9,628

847 million shares were traded on the NYSE and 2.2 billion shares changed hands on the NASDAQ

WTI oil was down $0.75 to $49.57 per barrel and wholesale gasoline was flat at $1.52 per gallon

The Bloomberg gold spot price was up $6.10 to $1,579.50 per ounce

The Dollar Index—a comparison of the U.S. dollar to six major world currencies—rose 0.2% to 98.85

Treasury yields dipping as week begins with quiet economic calendar

Treasuries were higher, with the yield on the 2-year note down 2 basis points at 1.38%, the yield on the 10-year note shed a bit more than 2 bps to 1.56% and the 30-year bond yield decreased just under 2 bps to 2.03%.

This week, earnings season will move into the latter stages, while the economic calendar—although dormant today—will remain robust. Reports scheduled for release tomorrow include the NFIB Small Business Optimism Index and the JOLTS Job Openings report. The rest of the week will offer looks at business inventories and the Fed’s industrial production and capacity utilization report.

The first look at the January inflation landscape will come in the form of the Consumer Price Index (CPI) and the Import Price Index, and the all-important consumer will be on display with reads on retail sales and the preliminary University of Michigan Consumer Sentiment Index slated for release. Fed Chairman Jerome Powell is expected to begin his two-day semi-annual monetary policy testimony in front of Congress tomorrow.

Europe mixed amid virus focus and political uncertainty

European equities finished mixed and Asian markets were mostly lower, as the global markets continue to assess the uncertain impact of the spreading coronavirus outbreak.

The U.K. FTSE 100 Index was down 0.3%, France’s CAC-40 Index and Germany’s DAX Index declined 0.2%, and Spain’s IBEX 35 Index was little changed, while Italy’s FTSE MIB Index ticked 0.1% higher and Switzerland’s Swiss Market Index gained 0.3%.

Japan’s Nikkei 225 Index declined 0.6%. The Hong Kong Hang Seng Index moved 0.6% lower. South Korea’s Kospi Index decreased 0.5% and India’s S&P BSE Sensex 30 Index traded 0.4% to the downside. Australia’s S&P/ASX 200 Index dipped 0.1%. However, China’s Shanghai Composite Index advanced 0.5%.