Daily Market Report - December 28, 2023: Stocks Rise Modestly, Cryptos Soar, and Forex Dynamics Unfold

MARKET WRAP

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Wednesday, U.S. stocks closed modestly higher amid relatively thin trading volumes. The Dow Jones Industrial Average rose 111 points (+0.30%) to 37,656, the S&P 500 gained 6 points (+0.14%) to 4,781, and the Nasdaq 100 was up 28 points (+0.17%) to 16,906.

• Sector Performance:Automobiles & components (+1.56%), food & staples retailing (+0.89%), and pharmaceuticals, biotechnology & life sciences (+0.71%) led the market higher. Energy (-0.53%) and media (-0.24%) sectors underperformed.

• Notable Stock Moves:

• Tesla (TSLA):Up 1.88% - Launching a new version of Model-Y car at its Shanghai factory.

• Apple (AAPL):Closed little changed - Resumes selling its latest Apple Watch models after winning a court case against Masimo Corp.

• Cryptocurrency-related Stocks:

• MicroStrategy (MSTR):Jumped 11.06% - Acquired an additional 14,620 Bitcoins for $616 million.

• Marathon Digital (MARA):Surged 15.24%.

• Coinbase Global (COIN):Traded 7.67% higher.

• Riot Platforms (RIOT):Was up 7.32%.

• Economic Data:The Richmond Fed manufacturing index fell to -11 in December (vs -6 expected).

• Bond Market:The U.S. 10-year Treasury Yield rose 0.83bps (+0.79%) to 3.787%.

• European Markets:DAX 40 gained 0.21%, CAC 40 added 0.04%, and FTSE 100 was up 0.36%.

• Commodities:U.S. WTI crude oil futures dropped $1.62 (-2.14%) to $73.95 a barrel. Gold price rose $10 to $2,077 an ounce.

MARKET WRAP: FOREX

The U.S. dollar continued softening against major currencies, with the dollar index slipping to a five-month low of 100.94.

• Currency Moves:

• EUR/USD:Rose 61 pips (+0.55%) to 1.1103.

• USD/JPY:Slid 56 pips (-0.39%) to 141.82.

• GBP/USD:Gained 73 pips (+0.57%) to 1.2799.

• AUD/USD:Dropped 107 pips (-1.25%) to 0.8427.

• USD/CHF:Added 20 pips (+0.29%) to 0.6844.

• USD/CAD:Increased 12 pips (+0.09%) to 1.3207.

• Bitcoin:Rose over 2% to $43,500.

TECHNICAL ANALYSIS

Dow Jones (CME) Intraday: the upside prevails.

• Pivot:37870.00

• Preference:Long positions above 37870.00 with targets at 38120.00 & 38200.00 in extension.

• Alternative scenario:Below 37870.00 look for further downside with 37800.00 & 37700.00 as targets.

• Comment:The next resistances are at 38120.00 and then at 38200.00.

EUR/USD Intraday: further advance.

• Pivot:1.1095

• Preference:Long positions above 1.1095 with targets at 1.1130 & 1.1150 in extension.

• Alternative scenario:Below 1.1095 look for further downside with 1.1080 & 1.1060 as targets.

• Comment:Technically the RSI is above its neutrality area at 50.

GBP/USD Intraday: further upside.

• Pivot:1.2780

• Preference:Long positions above 1.2780 with targets at 1.2830 & 1.2850 in extension.

• Alternative scenario:Below 1.2780 look for further downside with 1.2760 & 1.2740 as targets.

• Comment:The RSI is bullish and calls for further upside.

USD/JPY Intraday: the downside prevails.

• Pivot:141.90

• Preference:Short positions below 141.90 with targets at 140.90 & 140.60 in extension.

• Alternative scenario:Above 141.90 look for further upside with 142.30 & 142.65 as targets.

• Comment:As long as the resistance at 141.90 is not surpassed, the risk of a break below 140.90 remains high.