Daily Market Overview: January 23, 2024

DAILY MARKET NEWSLETTER

January 23, 2024

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Monday, major U.S. stock indexes advanced further from their record closed marked Friday. The Dow Jones Industrial Average closed above the level of 38,000 for the first time, rising 138 points (+0.36%) to 38,001. The S&P 500 gained 10 points (+0.22%) to 4,850, and the Nasdaq 100 edged up 16 points (+0.09%) to 17,330.

Sector Performance:

• Technology hardware & equipment (+1.11%), transportation (+1.01%), and commercial & professional services (+0.81%) gained the most.

• Lagging sectors: automobiles & components (-1.30%), food, beverage & tobacco (-1.11%), and consumer services (-0.76%).

Notable Stock Moves:

• Nvidia (NVDA) advanced 0.27% to $596.54, another record close.

• Advanced Micro Devices (AMD) retreated 3.47%, halting a four-session rally.

• Apple (AAPL) rose 1.22%, while Microsoft (MSFT) softened 0.54%, and Tesla (TSLA) was down 1.60%.

• Archer Daniels Midland (ADM) plunged 24.20%, lowering its full-year earnings outlook.

• Gilead Sciences (GILD) slid 10.15% as its lung-cancer drug Trodelvy did not show significant effectiveness.

Other Markets:

• U.S. 10-year Treasury yield eased slightly to 4.110%.

• European stocks closed higher, with the DAX 40 rising 0.77%, the CAC 40 up 0.56%, and the FTSE 100 up 0.35%.

• U.S. WTI crude-oil futures increased $1.31 (+1.79%) to $74.56 a barrel.

• Gold price declined $8 to $2,020 an ounce.

MARKET WRAP: FOREX

Currency Markets:

• U.S. dollar index stable at 103.34.

• EUR/USD slid 17 pips (-0.16%) to 1.088.

• USD/JPY dipped 2 pips to 148.12. Bank of Japan expected to keep key interest rate unchanged at -0.100%.

• GBP/USD added 5 pips to 1.2705.

• AUD/USD dropped 29 pips to 0.6568. National Australia Bank (NAB) business confidence index improved to -1 in December.

• USD/CHF edged up 3 pips to 0.8688, and USD/CAD climbed 48 pips to 1.3477.

• Bitcoin lost $40,000 level, sliding over 4% to $39,750.

FOREX ANALYST VIEWS

GBP/USD Intraday: turning up.

• Pivot: 1.2695

• Preference: Long positions above 1.2695 with targets at 1.2745 & 1.2760.

• Alternative scenario: Below 1.2695, look for further downside with targets at 1.2680 & 1.2665.

• Comment: RSI calls for a new upleg.

USD/JPY Intraday: turning down.

• Pivot: 148.30

• Preference: Short positions below 148.30 with targets at 147.60 & 147.30.

• Alternative scenario: Above 148.30, look for further upside with targets at 148.55 & 148.80.

• Comment: RSI calls for a new downleg.

EUR/USD Intraday: turning up.

• Pivot: 1.0875

• Preference: Long positions above 1.0875 with targets at 1.0910 & 1.0925.

• Alternative scenario: Below 1.0875, look for further downside with targets at 1.0860 & 1.0845.

• Comment: RSI calls for a new upleg.

Dow Jones (CME) Intraday: intraday support around 38030.00.

• Pivot: 38030.00

• Preference: Long positions above 38030.00 with targets at 38310.00 & 38430.00.

• Alternative scenario: Below 38030.00, look for further downside with targets at 37880.00 & 37670.00.

• Comment: Next resistances are at 38310.00 and then at 38430.00.

Note: Due to market volatility, some key levels may have been reached, and scenarios played out.