Daily Morning Note – 16 July 2019

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PHILLIP SUMMARY

U.S. stocks eked out another round of records Monday, after closing at all-time highs last week, as investors digested second-quarter results from Citigroup and awaited a wave of second-quarter earnings.

The Dow Jones Industrial Average gained 27.13 points, or 0.1%, to set a new closing record of 27,359.16, the S&P 500 index added 0.53 point, or less than 0.1%, to end at 3,014.30. The Nasdaq Composite Index rose 14.04 points to reach 8,258.19, a 0.2% increase. All three major indexes scored intraday records in early activity, turned lower and then edged back into positive territory in late trade.

Citigroup Inc. said its second-quarter income rose 7% from a year ago, with profit at $4.8 billion, up from $4.49 billion a year ago and earnings come in at a better-than-expected $1.95, compared against consensus analysts’ expectations for $1.81 a share.


TECHNICAL PULSE

American Airline

Recommended Action: Technical LONG

American Airline’s bearish fall has come to a halt when prices broke out of the rising wedge since the start of June 2019. With that, the stock’s bullish trajectory is confirmed.

Kimberly Clark

Recommended Action: Technical LONG

Kimberly-Clark’s has been rising steadily and based on the Elliott wave count, the stock is leaving its 4th wave correction on a strong note when the stock’s price rebounded near the previous support at 132.69. This indicates a strong bullish movement.

Ford Motor

Recommended Action: Technical LONG

Ford Motor’s bullish rise since the start of Jan 2019 has hit some flats recently. However, based on the technicals, Ford may be breaking new highs again for 2019.

Read more technical pulse

BREAKING NEWS

US-China trade officials to talk again ‘this week’: official. Top US and Chinese trade negotiators are due to speak by telephone in the coming days, but no face-to-face talks have been scheduled yet, US Treasury Secretary Steven Mnuchin said on Monday.That would be the second call in two weeks by senior officials from Washington and Beijing as the thaw in fraught trade negotiations continues.

China’s economy sputters with 6.2% growth in Q2. The world’s second-largest economy grew 6.2 per cent from April-June, its slowest growth rate on record and down from 6.4 per cent registered in the first three months of the year. “Uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce,” said Tom Rafferty, an economist for China at The Economist Intelligence Unit.

SGX considers volatility controls for pre-open and pre-close trading. The proposed controls could be introduced as early as next year, depending on the feedback received.

Hyflux ‘progressing’ towards Utico deal for S$400m lifeline. HYFLUX’S potential white knight Utico is looking to take an 88 per cent stake in the troubled water treatment firm through S$300 million in equity injection and S$100 million in shareholder’s loan. Hyflux first mentioned Utico’s potential investment of S$400 million on May 3 but both parties are still working towards a binding agreement.

Suntec Reit acquires Adelaide office building. SUNTEC Reit has expanded its presence in Australia after acquiring the entire stake in a freehold Grade A office building in Adelaide, South Australia for A$148.3 million (S$141.4 million). This is its first foray into Adelaide. ARA Trust Management (Suntec), manager of the real estate investment trust (Reit), said in a media statement issued on Monday that the 12-storey property has an approximate net lettable area of 282,000 square feet and had undergone several rounds of refurbishment.

Koh Brothers unit snags S$668.2m PUB job. A SUBSIDIARY of Catalist-listed Koh Brothers Eco Engineering has bagged a S$668.2 million contract from national water agency PUB, boosting its parent company’s order book to over S$1 billion. The contract, awarded to Koh Brothers Building & Civil Engineering (KBCE) and its joint venture (JV) partner China Harbour (Singapore) Engineering, is for the construction of influent pumping stations at Tuas Water Reclamation Plant (TWRP) later this month.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

Webinar Of The Week

Market Outlook: :(PSR) 2019-07-15 US weekly, China Weekly, Technical Analysis, Singapore 3Q19 Strategy

Date: 15 July 2019

For more on Market Outlook

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