Stocks fell on Friday following conflicting US China trade reports and softer-than-expected sales guidance from Apple (AAPL 207.48, -14.74, -6.6%). Futures rallied overnight on a Bloomberg report indicating U.S. President Trump asked his cabinet to draft a trade deal, but stocks eventually fell into negative territory after White House officials denied the report.
The S&P 500 lost 0.6%, the Dow Jones Industrial Average lost 0.4%, and the Nasdaq Composite lost 1.0%. Small caps outperformed, with the Russell 2000 adding 0.2%. All four major indices closed solidly higher for the week, adding between 2.4% and 4.3% apiece.
Director of the United States National Economic Council Larry Kudlow confirmed in a CNBC interview that the cabinet was not asked by President Trump to draw up a trade plan for China. Later, as stocks traded at session lows, President Trump reiterated his belief to reporters that the U.S. will reach a trade deal with China. This led stocks to cut their losses in late afternoon trading.
The S&P 500 advanced 1.1% on Wednesday, securing a second straight day of gains putting an end to a brutal October with a monthly loss of 6.9%. Mega-cap technology stocks were in control from the start of the trading session, following Facebook (FB, +3.8%) releasing its third quarter earnings report the previous evening.
The tech-sensitive Nasdaq Composite surged 2.0%, reducing its monthly loss to 9.2%, while the Dow Jones Industrial Average gained 1.0% to reduce its monthly loss to 5.1%. Small caps underperformed, with the Russell 2000 adding 0.3% to bring its monthly loss to 10.9%.Read More
On November 1st, a new law will be passed by the Chinese government called the GBT-1499, which some believe may result in an increased demand of a specific compound needed to strengthen steel. The demand of this additive is increasing and with the addition of the new guidelines by the Chinese government, you can expect this demand to increase.
Some investors believe that this new building code reinforcement will create an increased demand in this product as currently there is already a short supply. Currently this “additive” is costs about about $20/lb. However, with the new change in building code reinforcement, some experts believe that it will be trading 10-fold to upwards of $200/lb. This isn’t the first time we’ve seen such increased demand for this “additive”. Similar situation occurred a few years ago which saw the price skyrocket more than 800%.Read More
The S&P 500 lost 1.7% in a volatile session on Friday, in which it never touched positive territory. Disappointing earnings reports from Amazon (AMZN, -7.8%) and Alphabet (GOOG, -2.2%) rattled a fragile market pestered by peak-earnings concerns.
The benchmark index briefly dipped into correction territory, characterized by a 10% pullback from a prior high, and eventually the 11 S&P 500 sectors all finished lower. The Dow Jones Industrial Average lost 1.2%, the Nasdaq Composite lost 2.1%, and the Russell 2000 lost 1.1%.Read More
The S&P 500 fell for the ninth time in the last 11 sessions on Thursday, losing 1.4%, as concerning global developments dampened buying interest. The benchmark index opened just modestly lower, but started extending losses soon thereafter. However, the S&P 500 did close a hair above its 200-day moving average (2768.02), a silver lining on a day hard-pressed for good news.
As for the other major averages, the Dow Jones Industrial Average lost 1.3%, the Nasdaq Composite lost 2.1%, and the Russell 2000 lost 1.8%.
The stock market opened slightly lower after disappointing news overseas. China’s Shanghai Composite tumbled 2.9%, extending its yearly loss to nearly 25% and touching a four-year low, amid investor concerns over slowing economic growth. In addition, Japan’s Nikkei fell 0.8% after the country reported its first year-over-year export decline (-2.1%) since November 2016. Meanwhile, burgeoning angst that the Italian budget situation could get nasty and upset global financial markets sent European indices lower.Read More
The S&P 500 finished at its flat line on Wednesday following a volatile day of trading. A late morning surge in the financials sector (+0.9%) lifted the benchmark index from its early depths – the S&P 500 was down as much as 1.0% – and the release of the September FOMC minutes prompted another small bout of volatility in the afternoon.
As for the other major averages, the blue-chip Dow Jones Industrial Average lost 0.4%, the tech-heavy Nasdaq Composite remained unchanged, and the small-cap Russell 2000 lagged, losing 0.5%.Read More