|Day's Range||27,032.56 - 27,172.90|
|52 Week Range||21,712.53 - 27,398.68|
Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Sozzi, Ramsey Smith Alex.fyi CEO and Ed Al-Hussainy - Columbia Threadneedle Investments Senior Interest Rate and Currency Analyst discuss market action.
U.S. stocks fell on Monday on global growth worries after weekend attacks on Saudi Arabia's crude facilities hit 5% of the world's supply, but a sharp surge in crude prices lifted beaten-down energy stocks and kept losses in check. Shares of Apache Corp, Marathon Oil Corp and Hess Corp jumped between 10% and 13% and were the leading gainers on the benchmark index. Anticipation of higher fuel costs drove down shares of airlines and cruise line operators with the S&P 1500 airlines shedding 2.20% while Carnival Corp fell 2.8%.
Investing.com - Stocks moved lower overall on Monday in the wake of the drone attacks on Saudi Arabian oil facilities and oil fields.
Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract the rest of the session on Monday is likely to be determined by trader reaction to a pair of Gann angles at 27036 and 27031.
The Dow Jones Industrial Average Index has fallen 0.4% or by 115 points today. The index is trading lower after rising for eight consecutive trading sessions.
Investing.com – Wall Street fell after a weekend attack on Saudi Arabian oil installations crippled 5% of the world’s oil supply, raising fears for the global economy and increasing the risk of war between the U.S. and Iran.
(Bloomberg) -- Another rate cut from the Federal Reserve is all but certain. Its impact on the stock market, however, is the topic of frantic debate.In the bear camp are Bank of America Corp. and Morgan Stanley, whose strategists warned against relying too much on lower rates to boost stocks. In separate research, they reached the same conclusion after studying the historic relationship between Treasury yields and the S&P 500’s price-earnings ratios. That is, when rates go down too much, it hurts equity valuations.Ned Davis Research, on the other hand, offered a brighter assessment by focusing on a favorable market pattern following the second rate cut of a cycle, as is the case now.Getting it right has become an urgent matter for investors who have watched the S&P 500 rally 20% this year, with almost all the gains coming from an expansion in price multiples. Profits are barely growing, but stocks have rebounded from last year’s selloff after the Fed put a brake on rate hikes.Rate cuts can clearly bolster stocks in some circumstances. When they don’t is when the economy is in trouble -- and easy monetary policy almost always comes at times of trouble. When yields undercut a certain threshold, Morgan Stanley and BofA pointed out, equity multiples tend to shrink.“You can’t just depend on the Fed to lower interest rates to spur this bull market further,” Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments in Mountain View, California, said by phone. “The fundamentals have to be there for additional highs on the stock market. They just aren’t there.”BofA and Morgan Stanley found different yield levels that historically switched from being good to bad for valuations. Savita Subramanian at BofA pointed to 10-year Treasury yields below 4%, compared with the current level around 1.9%. Mark Cabana, the firm’s rate strategist, said in a note earlier this month that the market expects the Fed to lower interest rates about five times by early 2021 and the likelihood for zero or negative interest rates is rising.“An ultra-low or negative rate environment is not necessarily supportive of stocks,” Subramanian wrote in a note last week. “The path to 0% would be accompanied by a significant deterioration in the growth outlook. That doesn’t bode well for P/E multiples.”Look at Germany, she suggested. Yields on the country’s 10-year bund have slipped to minus 0.7% from 4.9% since 2010. And price-earnings multiples for the stock market have been flat, hovering near 13.At Morgan Stanley, Mike Wilson examined real yields, the extra payment from 10-year Treasury above inflation. Currently, they sit in a range between minus 0.5% and zero, a place where further drops historically entail a decline in P/Es.“Falling rates are only a positive for equity valuations to a point,” said Wilson. “We’re passing the point.”Consider the last rate cut, he said. When the Fed lowered rates for the first time in a decade on July 31, the S&P 500 dropped 1.1% and then continued to decline the following month. At Friday’s close just above 3,000, the equity benchmark wasn’t far from the level seen the day before the rate move.But a second rate cut has tended to herald a more favorable reaction from stocks than the first, according to Ned Davis Research, which studied market performance and easing cycles in the past century.Perhaps it’s because doubts about the Fed’s commitment ease, or liquidity from the first one works through the system. Whatever the reason, the Dow Jones Industrial Average has jumped an average 9.7% three months after the second cut.“The good news for the bulls, from a historical perspective, is that a reduction next week would mean that a one-and-done cut is off the table,” Ed Clissold, chief U.S. strategist at Ned Davis, wrote in a note last week. “Two is better than one.”To Kevin Miller, chief investment office at E-Valuator Funds, the Fed’s influence on the U.S. market has weakened after Chairman Jerome Powell started considering global developments in policy making.“He doesn’t have to do something for the economy, but he does have to keep an eye on what’s happening globally and stay somewhere in line with where global rates are,” he said. “I don’t see a huge sell-off in the market if they lower by a quarter. Likewise, I don’t see a huge gain. It’s going to be more driven by what we’re hearing on a potential trade agreement” between the U.S. and China, he added.To contact the reporters on this story: Tatiana Darie in New York at email@example.com;Lu Wang in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Chris NagiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It’s a big week ahead for the markets. The FED, the BoE and Brexit are in focus, with stats and chatter on trade also needing some attention.
Outspoken former White House Communications Director Anthony Scaramucci claims the president is 'unhinged' and in 'steady decline.'
The S&P 500 ended the day down slightly on Friday but less than 1% below its all-time high as a drop in Apple stock countered cooling U.S.-China trade tensions. All three major U.S. stock indexes posted their third straight weekly gains, capping a week that saw signs of a potential thaw in the trade war between the world's two largest economies, which has gripped markets for months.
Wall Street was mixed on Friday, with the S&P 500 and the Dow hovering just below all-time highs as cautious optimism regarding easing U.S.-China trade tensions was held in check by a drop in Apple stock. Tariff-vulnerable industrials helped keep the blue chip Dow in positive territory, which was on track for its eighth straight daily advance, its longest winning streak since May 2018.
Losses in shares of U.S. technology majors Apple and Broadcom held the S&P 500 just under record levels on Friday, as traders balanced the latest indicators of an uncertain global growth outlook with perceived progress in Sino-U.S. trade relations. Broadcom Inc, among the world's biggest chipmakers, weighed on the tech-heavy Nasdaq with a 2.6% fall, after it said in results late on Thursday that demand for microchips had bottomed out and that a recovery was not yet on the cards.
Broadcom Inc, among the world's biggest chipmakers, weighed on the tech-heavy Nasdaq after it said in results late on Thursday that demand for microchips had bottomed out and that a recovery was not yet on the cards.
Losses in shares of U.S. technology majors Apple and Broadcom set Wall Street for a subdued end to the week, as traders balanced the latest indicators of uncertain global growth outlook with perceived progress in Sino-U.S. trade relations. Broadcom Inc, among the world's biggest chipmakers, weighed on the tech-heavy Nasdaq after it said in results late on Thursday that demand for microchips had bottomed out and that a recovery was not yet on the cards.
The Dow Jones Industrial Average has risen 51.5 points today—up for the eighth consecutive trading session. The DJIA is up 1,100 points since September 3.
President Trump might consider an interim trade deal. However, the US government's top priority is to get a complete trade deal and not individual pieces.
Global markets rise on trade hopes but new records for the indices and a trade deal may be elusive.
Based on the early price action and the current price at 27239, the direction of the December E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to 27184.
With U.S.-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the U.S. economy avoid a severe downturn. A quarter-point rate reduction is widely expected when the Fed issues its next policy statement on Wednesday, which would be the central bank's second such cut after lowering rates in July for the first time since 2008. “If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell off," said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia.