Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Opening Bell: U.S. Futures, Stocks Slide As Broader Rally Ends; Dollar Falls

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewNov 12, 2020 06:53AM ET
www.investing.com/analysis/opening-bell-broader-rally-ends-as-investors-rotate-back-to-tech-pandemic-favori-200544403
Opening Bell: U.S. Futures, Stocks Slide As Broader Rally Ends; Dollar Falls
By Investing.com (Pinchas Cohen/Investing.com)   |  Nov 12, 2020 06:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • European equities drop on earnings outlooks, dispelling hopes of continued profits amid lockdowns
  • Tech recovers after sell-off triggered by vaccine news
  • Global virus fatalities reach fresh record

Key Events

A global rally that was losing momentum turned negative on Thursday on the view that equity valuations may be stretched as economies continue to suffer from the persistent pandemic. Although many European countries are locked down, infections are continuing to spread there, while in the US new infections and hospitalization numbers keep hitting new highs.

Contracts on the Dow, S&P, and Russell 2000 were all trading in the red, though futures on the tech heavy NASDAQ were positive at time of writing.

Gold rallied as the dollar remained under pressure.

Global Financial Affairs

US futures have been falling since Wednesday’s rebound of the underlying indices when the S&P and NASDAQ posted gains. Shares in Europe, including on the Stoxx 600 opened lower on earnings news.

Europe’s largest industrial manufacturing company, Siemens (DE:SIEGn) slumped even though it posted a moderate increase after providing softer than expected guidance for 2021 because of the coronavirus.

British Legal & General Group (LON:LGEN), which provides financial services, slumped after announcing its final 2020 dividend may remain the same.

Iconic British luxury brand Burberry (LON:BRBY) jumped 5.8% thanks to a less-than-expected decline in sales.

Most Asian indices were in the red this morning, with the Nikkei 225 notably in the green, up 0.7%, as traders rotated back into tech stocks after a selloff made valuations more palatable.

US stocks climbed to 10-week highs on Wednesday during the Wall Street session, boosted by a massive return into technology shares, with Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) leading the charge, while small caps ended a two-day surge.

The S&P 500 Index advanced to its highest level in over ten weeks, finishing the day less than a quarter-of-a-percent from the record high.

S&P Daily
S&P Daily

The index extended Tuesday’s rebound off the top of a symmetrical triangle, increasing the odds of bulls having taken over from bears when breaking the pattern’s topside. Monday’s oversized shooting star still looms above with a potential bearish stronghold of unknown magnitude.

Yields, including for the 10-year Treasury note, ended a five-day advance.

Treasuries Daily
Treasuries Daily

The RSI provided a negative divergence.

The dollar retreated after reaching a weekly high.

Dollar Index Daily
Dollar Index Daily

The greenback is finally making progress climbing back over the neckline of a H&S continuation pattern, bearish within the downtrend. The price closed below the 50 DMA for the sixth straight day.

Gold advanced in a fifth day of zig-zag trading, on the dollar’s slight weakness and a decline in futures and stocks.

Bitcoin climbed for the second day, nearing the $16,000 level, its highest point since early January 2018.

Oil fell, confirming Wednesday's powerful shooting star.

Oil Daily
Oil Daily

However, it remains above the top of a falling channel, guarded by the 100 DMA. In reality, the supply and demand picture for oil in the fourth quarter of 2020 and first quarter of 2021 isn't positive.

Up Ahead

  • European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and US Federal Reserve Chairman Jerome Powell are among the speakers at an online ECB Forum entitled, Central Banks in a Shifting World on Thursday.
  • US CPI data for October is due on Thursday.
  • On Friday, finance ministers and central bankers from the Group of 20 hold a meeting ahead of next week's G20 summit, to discuss bolder action to help poor nations struggling to repay their debts.

Market Moves

Stocks

  • The Stoxx 600 Index sank 0.7% as of 8:24 a.m. London time.
  • NASDAQ 100 Index futures decreased 0.4%.
  • Futures on the S&P 500 Index sank 0.6%.
  • The MSCI Asia Pacific Index was up 0.6%.

Currencies

  • The Dollar Index receded 0.2%.
  • The British pound dipped 0.3% to $1.3181.
  • The Japanese yen fell 0.1% to 105.30 per dollar.
  • The Indian rupee was up 0.22% to 74.599 per dollar.

Bonds

  • Germany’s 10-year yield decreased one basis point to -0.52%.
  • Britain’s 10-year yield declined two basis points to 0.394%.
  • France’s 10-year yield fell one basis point to -0.276%.
  • Japan’s 10-year yield fell one basis point to 0.03%.

Commodities

  • West Texas Intermediate crude gained 0.4% to $41.61 a barrel.
  • Gold was little changed at $1,865.17 an ounce.
  • Soybeans increased 0.07% to $11.51 a bushel.
  • Iron ore increased 1.07% to $121.59 per metric ton.
Opening Bell: U.S. Futures, Stocks Slide As Broader Rally Ends; Dollar Falls
 

Is Apple Undervalued?

Based on 15 different premium valuation models, we calculate whether Apple stock is undervalued or overvalued every day. If you are considering Apple for your portfolio, you need to check this out:

See Fair Value Now
Unlock Apple's unbiased fair value with InvestingPro+

Related Articles

Opening Bell: U.S. Futures, Stocks Slide As Broader Rally Ends; Dollar Falls

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Danny Axe
Danny Axe Nov 15, 2020 10:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ends .. Ha
ufuk biriz
ufuk biriz Nov 12, 2020 7:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great outlook again, thanks sir.
Misheck Jere
Misheck Jere Nov 12, 2020 7:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I guess this means were selling nasdaq at the us opening?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email