Daily Market Newsletter - February 8, 2024

DAILY MARKET NEWSLETTER

February 8, 2024

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Wednesday, U.S. stocks charged higher, pushing the three major indexes to record closes again. The Dow Jones Industrial Average rose 156 points (+0.40%) to 38,677, the S&P 500 climbed 40 points (+0.82%) to 4,995, and the Nasdaq 100 was up 182 points (+1.04%) to 17,755.

Technology, consumer cyclicals and industrial stock sectors led the market higher.

Microsoft (MSFT) rose 2.11% to $414.05, and Nvidia (NVDA) climbed 2.75% to $700.99, both marking record closing levels.

Ford Motor (F) gained 6.05%. The major car-maker announced a special dividend of $0.18 per share.

Chipotle Mexican Grill (CMG) jumped 7.21%, as the fast-food restaurant chain's quarterly earnings topped expectations.

On the other hand, Snap (SNAP) plummeted 34.61%, the social media's quarterly sales missed expectations.

Also posting lower-than-expected quarterly results, Gilead Sciences (GILD) lost 4.25%, and VF Corp (VFC) slid 9.68%.

Walt Disney (DIS), Fox (FOXA) and Warner Bros. Discovery (WBD) said they agreed to form a new joint venture on streaming sports. Disney dipped 0.15%, Fox fell 6.48%, and Warner Bros was down 3.18%.

The 10-year Treasury yield gained 2.3 basis points to 4.115%.

European stock indexes closed lower, with the DAX 40 down 0.65%, the CAC 40 down 0.36%, and the FTSE 100 down 0.68%.

U.S. WTI crude-oil futures gained $0.75 (+1.02%) to $74.06 a barrel.

Gold price eased $1 to $2,034 an ounce.

MARKET WRAP: FOREX

The U.S. dollar index dipped to 104.05.

EUR/USD gained 18 pips to 1.0772. Germany's industrial production declined 1.6% on month in December (vs -0.3% expected).

USD/JPY rose 21 pips to 148.15.

GBP/USD climbed 30 pips to 1.2627. In the U.K., the Halifax house price index added 1.3% on month in January (vs +0.5% expected).

AUD/USD eased 5 pips to 0.6518.

USD/CHF climbed 48 pips to 0.8743.

USD/CAD dropped 32 pips to 1.3460. Canada recorded a trade deficit of C$310 million (vs a trade surplus of C$1.8 billion expected), the first trade deficit since September 2023.

Bitcoin eventually broke out its recent trading range, trading 2.5% higher to $44,200.

GBP/USD

Intraday: the upside prevails.

Pivot: 1.2605

Our preference: Long positions above 1.2605 with targets at 1.2645 & 1.2665 in extension.

Alternative scenario: Below 1.2605 look for further downside with 1.2585 & 1.2565 as targets.

Comment: The RSI lacks downward momentum.

USD/JPY

Intraday: rebound expected.

Pivot: 147.90

Our preference: Long positions above 147.90 with targets at 148.65 & 148.85 in extension.

Alternative scenario: Below 147.90 look for further downside with 147.60 & 147.40 as targets.

Comment: The RSI calls for a new upgrade.

EUR/USD

Intraday: further upside.

Pivot: 1.0765

Our preference: Long positions above 1.0765 with targets at 1.0790 & 1.0805 in extension.

Alternative scenario: Below 1.0765 look for further downside with 1.0755 & 1.0740 as targets.

Comment: The RSI advocates for further upside.

Dow Jones (CME)‎ (H4)‎Intraday: the upside prevails.

Pivot: 38650.00

Our preference: Long positions above 38650.00 with targets at 38880.00 & 38950.00 in extension.

Alternative scenario: Below 38650.00 look for further downside with 38560.00 & 38480.00 as targets.

Comment: The RSI is above its neutrality area at 50%.