Stocks went up, led by tech shares

Daily Analysis - 05/02/2019

Dow improved more than 150 points

On Monday Stocks advanced, mostly driven by technology shares, while traders anticipated the key corporate earnings from important corporations. Shares of Apple, Facebook, Netflix, and Alphabet all ended at about 2% higher. The Nasdaq Composite rose more than 1.1% to 7,347.53, beating the other major indexes.

The Dow Jones Industrial Average ended 175.45 points above at 25,239.35 while Apple and Microsoft outperformed. The S&P 500 gained 0.7% to close at 2,724.86 while the technology sector grew more than 1.5%.

Investors shift their attention from Gold

On Tuesday Gold locked near to 7-day lows reached in the previous trading session. Gold pressed by the stronger greenback while trader’s desire for riskier assets increased in the announcement of firm U.S. economic data.

U.S. gold futures fell 0.1% to $1,318.39 an ounce while the Spot gold was even at $1,313.90 per ounce. Prices in the last trading session dropped to their weakest level since last month at $1,308.20. On Tuesday the greenback continued to hold its current profits versus its rivals, approved by the restoration of traders risk appetite.

US oil prices going up

On Tuesday the U.S. oil went up due to expectations of contracting global supply due to production cuts led by OPEC and U.S. penalties on Venezuela. International Brent crude oil futures went up about 21 cents to $62.72.

U.S. West Texas Intermediate (WTI) crude futures were at $54.74 per barrel up 21 cents. On Monday they got more than 1.0%, touching their highest level since Nov. at $55.73 a barrel. According to some experts, the U.S. sanctions on Venezuela had concentrated market attention on tighter global supplies.

The Australian dollar rose

On Tuesday, the dollar continued to hold on to its recent profits versus its major rivals helped by an improvement in traders' risk appetite, which opened an overnight increase to U.S. yields.

The AUD grew, shifting previous losses following the Reserve Bank of Australia (RBA) kept rates at record lows in their first meeting but appeared less dovish than anticipated. Masafumi Yamamoto, chief currency strategist at Mizuho Securities said, "The overly pessimistic view on developed economies and the overly dovish view on the (Federal Reserve) is being unwound."

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