248.22 +0.46 (0.19%)
Pre-Market: 7:38AM EST
|Bid||247.98 x 600|
|Ask||248.21 x 500|
|Day's Range||247.71 - 252.51|
|52 Week Range||203.64 - 265.93|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.15%|
Key market index funds closed mixed Tuesday as Intel and Nvidia led the upside, but Walmart tumbled on an earnings disappointment.
In the previous part of this series, we discussed that Ray Dalio is concerned about an economic slowdown and believes the risks of recession are increasing. In the present environment, many market participants are wondering whether they will see the same strong market returns in 2018 that they saw in 2017. Major indexes of the US such as the S&P 500 Index (SPX-INDEX), the Dow Jones Industrial Average Index (DJIA-INDEX) (DIA), and the NASDAQ Composite Index (COMP-INDEX) rose strongly after the 2016 US presidential election.
The immediate macro trigger for the recent sell-off in US equity markets was the January employment report, which showed solid jobs growth alongside a pick-up in the pace of average hourly earnings growth from 2.7% to a cycle high of 2.9%. The markets really zeroed in on the uptick in wage growth. First, it is too soon to declare a broad-based increase in wage growth.
What started off as another pleasing up market following a mild positive close on Tuesday turned into a blood-red market index in futures ahead of the bell this Valentine's Day.
Dow Industrials (^DJI, DIA) have risen 5,067 points or 26.4% and closed on Friday 9% below its record high close of 26,616.71. US equity markets have posted significant 52-week gains due largely to an expanding economy, near full-employment, an accelerating GDP, improving corporate results and near record-high levels of consumer and small business confidence. US corporate results, in the form of the S&P 500, are beating estimates at the best rate since 2009 this earnings season.
Jeffrey Ptak, global director of manager research for Morningstar, analyzed U.S. active managers' performance so far this year for Barron's and found that nearly 76% of large-cap active value and mid-cap value managers beat their benchmark so far this year, leading their active brethren. Maybe the tide is turning and we can get past the active versus passive debate.
The Dow is the market's bull/bear barometer but was never much of an investment. That changed after Trump's election, and heated up before the Dow crash.
The International Monetary Fund expects the US economy to grow 2.7% in 2018 and 2.5% in 2019. The simultaneous growth could have a huge positive impact on the stock markets around the world. In the United States, recent tax reform legislation could result in healthy corporate earnings growth.
What Triggered the Stock Market Panic This Month? Events that led to the decline of stock markets in the last two sessions don’t reflect the strength of the US economy nor the performance of the underlying companies. The US Fed has been suggesting three rate hikes through its dot-plot projections and it re-emphasized this at the January meeting.
What Triggered the Stock Market Panic This Month? The last two trading sessions on February 2 and 5 have left many investors worried about assets in the bond (BND) and stock markets. The sell-off in the stock market began after the US employment report was published on Friday, February 2.
Cryptocurrencies are not in the market carnage alone. The Dow Jones Industrial Average (DIA) touched its three-week low, probably due to the rise in U.S. Treasury yields. The S&P 500 Index (SPX-INDEX) fell 4.4% on February 5, 2018, and its RSI (relative strength index) level was 29.
Today’s market rout is a continuation of Friday’s meltdown in the US equity markets, which capped off the worst weekly performance by all three major equity market indices in over a year. The Dow Industrials (^DJI, DIA) (-665.75 pts/2.54%) and Nasdaq Composite (^IXIC, QQQ) (144.94pts/-1.96%) traded lower in lockstep. On Friday NYSE volume surged 8.89%.
In this part, we will look at the top percentage gainers from the refining and marketing sector in the US for the week starting January 29, 2018. To compile the list of top refining and marketing gainers, we have selected refining and marketing companies with market capitalizations of greater than $100 million and last week’s average trading volume greater than 100,000 shares. In the current week starting January 29, 2018, World Fuel Services (INT) is leading the list of gainers in the refining and marketing group.