CFD Markets News and Forecasts — 22-10-2018

Major US stock indexes ended the trading session mixed, as the disappointing quarterly reports of a number of companies and the fall of the financial sector were offset by growth in the conglomerate sector.

The focus of investors was also data from the Chicago Fed, which showed that the growth rate of economic activity slowed in September compared with August. According to the report, the national activity index was +0.17 against +0.27 in August. Indicators related to production made a negative contribution to the index, dropping to +0.11 from +0.16 in August, while employment indicators made a positive contribution, reaching +0.07 against +0.06 in August.

Most of the components of DOW finished trading in the red (19 out of 30). The outsider was DowDuPont Inc. (DWDP, -2.50%). The growth leader was shares of Intel Corporation (INTC, + 2.55%).

Most sectors of the S & P recorded a decline. The largest decline was shown by the financial sector (-1.1%). The conglomerate sector grew the most (+ 1.2%),

At the time of closing:

Dow 25,317.00 -127.34 -0.50%

S & P 500ь 2,755.84 -11.94 -0.43%

Nasdaq 100 7,468.63 +19.60 +0.26%

U.S. stock-index futures rose on Monday, powered by a rise in global stocks on hopes of economic stimulus in China and easing concerns over Italy's debt.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Intel (INTC) target lowered to $56 from $63 at B. Riley FBR

Barrick Gold (ABX) downgraded to Neutral from Outperform at Macquarie

Intel (INTC) upgraded to Buy from Neutral at Nomura

AT&T (T) upgraded to Buy at Tigress Financial

Sales were down in four of seven subsectors, representing 65% of total wholesale sales. The building material and supplies and the motor vehicle and parts subsectors led the declines in August, while the machinery, equipment and supplies subsector posted the largest gain.

In volume terms, wholesale sales edged down 0.1%.

The building material and supplies subsector declined for the second time in three months, down 2.3% to $9.5 billion in August. Sales were down in two of three industries, with the lumber, millwork, hardware and other building supplies industry (-3.5%) contributing the most to the decline. The decrease in August offset the gain in July for both the subsector (+1.2%) and the industry (+0.3%). Related indicators including housing starts (-6.4%), and exports of forestry products and building and packaging materials (-2.8%) also declined in August.

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That could help the loonie outperform near-term if that phrase is dropped. Canada's economy is operating close to capacity, and downside risk has been reduced following the new North America trade pact.

October 23

Before the Open:

3M (MMM). Consensus EPS $2.70, Consensus Revenues $8413.22 mln.

Caterpillar (CAT). Consensus EPS $2.85, Consensus Revenues $13278.72 mln.

McDonald's (MCD). Consensus EPS $1.99, Consensus Revenues $5296.67 mln.

United Tech (UTX). Consensus EPS $1.82, Consensus Revenues $16104.51 mln.

Verizon (VZ). Consensus EPS $1.19, Consensus Revenues $32454.66 mln.

October 24

Before the Open:

AT&T (T). Consensus EPS $0.95, Consensus Revenues $45732.59 mln.

Boeing (BA). Consensus EPS $3.47, Consensus Revenues $23854.38 mln.

Freeport-McMoRan (FCX). Consensus EPS $0.32, Consensus Revenues $4595.61 mln.

After the Close:

Barrick Gold (ABX). Consensus EPS $0.06, Consensus Revenues $1798.22 mln.

Ford Motor (F). Consensus EPS $0.28, Consensus Revenues $33498.23 mln.

Microsoft (MSFT). Consensus EPS $0.96, Consensus Revenues $27913.42 mln.

Visa (V). Consensus EPS $1.20, Consensus Revenues $5431.94 mln.

October 25

Before the Open:

Altria (MO). Consensus EPS $1.07, Consensus Revenues $5212.58 mln.

Int'l Paper (IP). Consensus EPS $1.50, Consensus Revenues $5881.11 mln.

Merck (MRK). Consensus EPS $1.14, Consensus Revenues $10881.33 mln.

Twitter (TWTR). Consensus EPS $0.14, Consensus Revenues $699.61 mln.

After the Close:

Alphabet (GOOG). Consensus EPS $10.69, Consensus Revenues $34040.37 mln.

Amazon (AMZN). Consensus EPS $3.07, Consensus Revenues $57052.90 mln.

Intel (INTC). Consensus EPS $1.15, Consensus Revenues $18114.79 mln.

Japan's all industry activity rebounded in August, according to rttnews.

The all industry activity index climbed 0.5 percent month-on-month in August, reversing a 0.2 percent drop in July and a 0.9 percent decrease in June. Economists had forecast a monthly growth of 0.4 percent.

Among components, construction industry activity gained 0.8 percent, in contrast to a 1 percent fall in July. At the same time, industrial production grew 0.2 percent, offsetting July's 0.2 percent decrease.

Tertiary industry activity climbed 0.5 percent, following a 0.1 percent fall in July.

On a yearly basis, all industry activity advanced 0.9 percent, the same rate of expansion as logged in July.

Unclaimed funeral urns, accumulated by thousands throughout Japan, reflecting the weakening of family ties and economic pressure in a rapidly aging country, says a Reuters editorial.

The personalities of the dead, cremated at public expense, are usually known. But in most cases, relatives either refuse or do not respond to requests to collect their remains. Burials can be expensive and time consuming, which is a burden for family members who hardly know the deceased relative.

Abandoned remains indicate social, economic and demographic changes in Japan, where more and more older people live on welfare, and families are more fragmented, indicating a weakening of traditional family ties and obligations.

Experts say this is a problem that is likely to grow. Mortality in Japan is projected to increase from 1.33 million per year to 1.67 million by 2040, even when the total population decreases.

Traditional funerals, including food, drinks and gifts for guests, as well as hiring a Buddhist monk, can cost 2 million yen ($ 17,800) or more, industry sources say.

New businesses have appeared, offering a no-nonsense funeral for between $ 2,000 and $ 4,000, but other expenses may arise, including hundreds of dollars and burial of an urn in a temple or cemetery.

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• Everybody Wants More Answers on Khashoggi Disappearance

• U.S. Must Play Leadership Role on Human Rights, Points to Sanctions as a Tool

• Saudis Committed to Boosting Oil Output to Offset Iran Export Losses

• Middle East Tour Comes Ahead of Final Phasing-In of Economy-Wide Iran Sanctions

• Italy To Add Monitoring To Stay Within 2.4% Deficit

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EUR/USD

Resistance levels (open interest**, contracts)

$1.1689 (2534)

$1.1634 (1037)

$1.1599 (119)

Price at time of writing this review: $1.1511

Support levels (open interest**, contracts):

$1.1447 (3057)

$1.1412 (6119)

$1.1373 (3405)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date November, 19 is 83948 contracts (according to data from October, 19) with the maximum number of contracts with strike price $1,1450 (6119);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3157 (802)

$1.3126 (388)

$1.3097 (621)

Price at time of writing this review: $1.3066

Support levels (open interest**, contracts):

$1.2966 (2183)

$1.2939 (1989)

$1.2909 (3155)

Comments:

- Overall open interest on the CALL options with the expiration date November, 19 is 23416 contracts, with the maximum number of contracts with strike price $1,3500 (3291);

- Overall open interest on the PUT options with the expiration date November, 19 is 28759 contracts, with the maximum number of contracts with strike price $1,3000 (3155);

- The ratio of PUT/CALL was 1.23 versus 1.19 from the previous trading day according to data from October, 19

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.