US Markets: US stocks tumbled as on January 03, 2020, after Pentagon confirmed an Air Strike launched against Iran, the move has heightened tensions in the middle east and weighing on the global equity market today, with the US major S&P 500 index traded 20.55 points or 0.63% lower at 3,237.30, the Dow Jones Industrial Average Index traded 233.75 points or 0.81% lower at 28,635.05, and the technology stocks weighted index Nasdaq Composite plummeted 59.62 points or 0.66% to 9,032.57, respectively (at the time of writing, before the U.S market close at ET 2:05 PM).
US News: On 3rd January 2020, stocks opened in the red, as news started surfacing regarding US Airstrikes killing an Iranian official, creating fears of tension between the two nations. On the stocks front, Tesla was up by 1.7 per cent after it was reported that the company shipped around 112,000 vehicles in the quarter ended in December, an increase of 50 per cent as compared to the previous year. Incyte’s stock was down by 10.4 per cent after one of the company’s product that went through a clinical trial, failed the late stage assessment. Newmont Goldcorp stock jumped by 1.8 per cent, one amongst many in the precious metal sector, after the prices were expected to rise in the sector. Arista Networks was down by 1.4 per cent after the company announced that its Chief Customer Officer had stepped down. British American Tobacco ADRs were up by 2.2 per cent, after the company made a formal application for the approval of its vaping products prior to the May deadline set by the Food and Drug Administration of America.
S&P 500 (SPX)
Elite Performers*: L Brands Inc, Northrop Grumman Corp, and Lamb Weston Holdings Inc were in the bright spot and accelerated by 4.63%, 4.13% and 3.46% respectively.
Worst Performers*: Incyte Corp, American Airlines Group Inc, and United Airlines Holdings Inc are the top three laggards and decreased by 12.18%, 5.40% and 3.09% respectively.
NASDAQ Composite (IXIC)
Elite Performers*: Inpixon, Leap Therapeutics Inc, and Ritter Pharmaceuticals Inc were in the bright spot and leapt up by 76.60%, 32.70% and 32.37% respectively.
Worst Performers*: Novan Inc, Trillium Therapeutics Inc, and Synthesis Energy Systems Inc were among the beaten down stocks and significantly plunged by 72.35%, 17.45% and 17.11% respectively.
Sectors traded in green zone*: Energy (up 0.62%) and Utilities (up 0.03%).
Sectors traded in red zone*: Consumer Non-cyclicals (down 0.22%), Basic Materials (down 0.23%) and Telecommunication services (down 0.52%).
Dow Jones Industrial Average (DJI)
Elite Performers*: United Technologies Corp, and Chevron Corp were in the bright spot and zoomed by 0.52%, and 0.27% respectively.
Worst Performers*: 3M Co, JP Morgan Chase & Co, and Goldman Sachs Group Inc were among the beaten down stocks and contracted by 1.86%, 1.58% and 1.48% respectively.
European Markets: The London’s broader equity benchmark index FTSE 100 traded at 18.10 points or 0.24% higher at 7,622.40, the FTSE 250 index snapped 120.10 points or 0.54% lower at 21,988.19, and the FTSE All-Share Index ended 3.99 points or 0.09% higher at 4,235.65 respectively. Another European equity benchmark index STOXX 600 ended at 418.33, down by 1.39 points or 0.33 per cent.
European News: In economic news, the consumer borrowing in the United Kingdom has grown at the slowest pace since 2014. The Bank of England data showed that the consumer lending slowed to 5.7 per cent in the twelve-month period to November 2019 just ahead of the British General election of December 2019. Data also suggest that credit card repayments are more than borrowings in the country for the first time since July 2013 and things are only set to get worse with the worsening unemployment scenario in the country. The focus now is on how the Boris Johnson uses the policy tools at its disposal to turn the gloomy economic tide in the country.
London Stock Exchange
Elite Performers of the Day*: DIALIGHT PLC (DIA), ROBERT WALTERS PLC (RWA) and AO WORLD PLC (AO) were on the bright spot and up by 7.39%, 5.40% and 5.36% respectively.
Worst Performers of the Day*: APTITUDE SOFTWARE GROUP PLC (APTD), BOVIS HOMES GROUP PLC (BVS) and VIVO ENERGY PLC (VVO) are the top laggards and down by 5.18%, 5% and 4.64% respectively.
FTSE 100 Index
5 days price performance of FTSE-100 Index before the market closed as on Jan-03-2020 (Source: Thomson Reuters (TR))
Performers of the Day*: BRITISH AMERICAN TOBACCO PLC (BATS), IMPERIAL BRANDS PLC (IMB), and BP PLC (BP) were in the bright spot and leapt up by 2.65%, 2.35% and 2.30% respectively.
Laggards of the Day*: EASYJET PLC (EZJ), ROYAL BANK OF SCOTLAND GROUP PLC (RBS), and TUI AG (TUI) were in the red zone and down by 3.22%, 1.92% and 1.92% respectively.
Stocks with high volume*: LLOYDS BANKING GROUP PLC (LLOY), BP PLC (BP.), and BARCLAYS PLC (BARC).
Best Performing Sectors of the Day*: Energy (up 1.75%), Consumer Non-Cyclicals (up 0.58%), and Healthcare (up 0.25%).
Worst Performing Sectors of the Day*: Financials (down 0.91%), Consumer Cyclicals (down 0.73%), and Basic Materials (down 0.43%).
Currency Rates*: GBP/USD and EUR/GBP traded at 1.3083 and 0.8535, respectively, at the time of writing.
Bond Yields (US and UK)*: U.S 10-Year Treasuries yield was quoting at 1.799%, and the UK 10-Year Government Bond yield was trading at 0.737%, respectively.
*At the time of writing
With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities.
Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?
Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.
We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.