Tuesday, December 24, 2019

Boeing shares surge after replacing its CEO; US durable goods orders largely disappoints

Tags
  • Dollar
  • Gold
  • Stocks
  • US Durable Goods Orders

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Market Recap: Boeing shares surge after replacing its CEO; US durable goods orders largely disappoints

Wall street posted record highs again on Monday thanks to Trump’s comments over the weekend. US President Donald Trump said on Saturday that the US and China will be signing their phase one trade agreement very soon, lifting stocks around the globe. Boeing shares gained 2.9% and boosted the DJIA as well after it announcing the ousting of CEO Dennis Muilenburg following the Boeing 737 Max crisis. The Nasdaq reached an all-time high for the eighth straight session.

Indexes Change (%) Net Change Closing Price
Dow Jones 0.34 96.44 28,551.53
S&P500 0.09 2.79 3,224.01
Nasdaq 0.23 20.69 8,945.65
*Source: Bloomberg

The greenback fell thanks to disappointing US durable goods orders data. November's durable goods orders suffered a massive decline in the US, sinking 2.0% instead of the expected 1.5% growth that economists forecast. One of the biggest contributing factors was that 52 out of 63 gross aircraft orders that Boeing reported for November were cancelled, likely due to its ongoing 737 Max production halt. While core capital goods orders rose in line with forecasts at 0.1% (and 1.1% in the prior month), it remains weak going into 2020. The downward revision (from 0.5% to 0.2%) in October’s durable goods orders growth also weighed on the dollar.

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Meanwhile safe haven assets gained thanks to the weak economic data. Gold and the yen both advanced thanks to the weaker dollar, while US treasuries retreat slightly.

Safe Haven Assets Change (%) Net Change Closing Price
Gold 0.51 7.57 1,485.79
JPY 0.04 0.04 109.40
*Source: Bloomberg
US Treasury yields Change (bps) Yield (%)
2-Year 2 1.65
10-Year 1 1.93
30-Year 1 2.36
*Source: Bloomberg

Asia indices started Tuesday's trading session slightly higher but retreated later in the day. The Nikkei, KOSPI and Straits Times Index opened the day 0.08%, 0.11% and 0.13% higher respectively.

Asia Change (%) Net Change Last Price As of (GMT +8)
Nikkei Index -0.06 -14.8 23,806.31 8:38:40 AM
Straits Times Index -0.06 -1.77 3,212.46 9:02:36 AM
Hang Seng Futures 0.09 26 27,882.00 2:59:55 AM
*Source: Bloomberg

Trading volume in stock markets is likely to continue to fall below average heading into the holiday week. Approximately only 5.9bn shares were traded on US exchange on Monday, below the 7.2bn daily average over the last 20 sessions.