Today’s Outlook:
• The Dow ended flat Friday (17/11/2023), notching its third-straight weekly win as stocks were buoyed by slowing inflation data earlier this week that fueled optimism
that Federal Reserve rate hikes has peaked. The Dow Jones Industrial Average up 0.01%, while the S&P 500 was up 0.13% and the NASDAQ Composite was up 0.08%. The S&P 500 and the Nasdaq are up more than 2% so far this week, while the DJIA is on pace for 2% rise.
• Treasury yields resumed their slide, underpinning the broader market move higher, as optimism that the Fed interest rates have peaked continue to support investor sentiment following data earlier this week showing easing inflation. Additionally, weekly jobless claims rose while U.S. retail sales fell for the first time in seven months in October, pointing to slowing demand at the start of the fourth quarter. On the housing front, October housing starts of 1.372 million were slightly ahead of expectations and higher than the prior month, while building permits of 1.487 million were also higher than expected.
• Energy stocks rose more than 2% recouping losses from a day earlier, supported by a jump in oil prices, though that wasn’t enough to prevent a fourth straight negative week of decline amid signs of increased supplies and fears of worsening global demand. This week’s sharp decline was mainly triggered by a steep rise in U.S. crude inventories and production sustaining at record levels.
• JCI made another gain, breaking through the next important Resistance level at 6970 supported by weekly Foreign Net Buy of IDR 546.86 billion (RG market); further solidifying the path towards the psychological level of 7000. NHKSI RESEARCH expects this week’s trading to be a little slower than last week as many eyes are on Thursday’s BI RDG decision regarding the certainty of our BI7DRR benchmark interest rate which is currently at 6.0%. Prepare yourself if there should be a pullback to test Support again in the 6900 area; perhaps use the momentum as an opportunity to BUY ON WEAKNESS.
Company News
• AUTO : Recorded IDR1.3 T Profit in 3Q23
• MYOH : TRJA Acquisition
• ADHI : New Contract Increase by 58% Up To October
Domestic & Global News
• Jokowi Secures Critical Minerals, Indonesian Nickel Derivatives Can Penetrate the US Market
• Observers Say There Are Still Many Disagreements in the Joe Biden-Xi Jinping Meeting
Download full report HERE.
