Daily Morning Note – 28 September 2018
WEEKLY MARKET OUTLOOK WEBINAR
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YOUR PHILLIP SUMMARY
U.S. stocks closed higher Thursday, with the S&P 500 and the Dow Jones Industrial Average snapping a multiday losing streak, as solid data bolstered confidence in the economy a day after the Federal Reserve raised interest rates for the third time this year.
The Dow trimmed gains but rose 54.65 points, or 0.2%, to 26,439.93, bouncing back from a three-day decline. The S&P 500 climbed 8.03 points, or 0.3%, to 2,914, recovering after a four-day drop, and the Nasdaq Composite Index advanced 51.60 points, or 0.7%, to 8,041.97.
In the latest economic data, jobless claims rose less than expected in the latest week, remaining near multi-decade lows. Orders for durable goods rose 4.5%, faster than had been expected. U.S. real gross domestic product for the second quarter rose at a 4.2% annualized rate, unchanged from the earlier estimate, the Commerce Department said. U.S. pending home sales unexpectedly dropped in August, falling 1.8% in the latest example of weak housing data.
Tesla Inc. Chief Executive Officer Elon Musk was accused by the Securities and Exchange Commission of misleading investors when he tweeted that he had funding lined up to take the company private. The agency said Musk fabricated the claim in his August tweet, which sent Tesla shares higher. The suit seeks an order from a judge barring Musk from serving as an officer or director of a public company, a request often made in SEC lawsuits, as well as unspecified monetary penalties. Shares tumbled more than 10 percent in after-hour trading.
5 key points from September FOMC Meeting
Analyst: Jeremy Ng
– The Fed hiked the Fed Funds Rate to 2.25% for the first time since March 2008
– One more rate hike is expected this year and three more in 2019
– Fed upgraded its GDP forecast for 2018 to 3.1% from 2.8%
– The Fed dropped the accommodative stance sentence in the FOMC statement
Oil edged higher on Thursday, driven by the prospect of a shortfall in global supply once US sanctions against major crude exporter Iran come into force in five weeks.
The US Securities and Exchange Commission on Thursday charged Tesla CEO Elon Musk with securities fraud, alleging he had misled investors last month in tweets about taking the company private.
Facebook on Thursday confirmed that advertisers were privy to phone numbers given by members of the social network for enhanced security.
Amazon opened a new retail store in New York on Thursday selling a range of products that get top ratings from customers of the online colossus.
Singapore-based ride-hailing firm Grab is in talks to sell “a decent-sized stake” in its Thai business to Thailand’s largest retailer, Central Group, people with direct knowledge of the matter told Reuters on Thursday.
Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research
Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research
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