[ad_1]
US stocks fell sharply on Tuesday morning, extending the pre-Thanksgiving defeat that was mainly fueled by the stock sales of technology-related companies and the Internet. Sharp declines in Target and Lowe after disappointing results also contributed to the weather.
US financial markets will be closed Thursday for the Thanksgiving holiday and Friday will be closed early.
What is the performance of benchmarks?
The Dow Jones Industrial Average
DJIA, -1.75%
fell 357 points, or 1.4%, to 24,662, and dropped 596 points or 2.3% to the lows of the session. The S & P 500 index
SPX, -1.38%
was down 27 points, or 1%, to 2,663, while the Nasdaq composite index
NQZ8, -1.19%
was down 52 points to 6,975, down about 0.8%. The three benchmarks were trading well but returning from the worst of Tuesday's decline.
The decline in opening momentarily wiped out cumulative gains for the Dow, S & P 500 and Nasdaq.
Monday's downturn led to the S & P 500 and the worst start of Thanksgiving week for Dow since 2011, while the Nasdaq recorded its worst start since 2000, according to Dow Jones Market Data.
What motivates the market?
US investors continue to be skeptical about slowing global growth, US-China trade relations, and the continued rise in interest rates that is expected to continue next year. These doubts have accumulated to make us fear that we are approaching the end of the current economic expansion, said the strategists.
The technology sector, which used to be very popular, has the most to lose from this change of sentiment. Technology stocks prolonged a downtrend that dragged down the market on Monday, with China adding that the day's sales had sold well after the Chinese authorities uncovered ample evidence of anti-competitive behavior on the part of China. their Korean rivals. According to the Wall Street Journal, Beijing investigators involved Samsung Electronics
005930, -1.95%
SK Hynix
000660, -3.30%
and Micron technology
MU, -1.38%
Market participants believe that China's investigation could intensify the thorny issues surrounding trade relations between China and other major counterparts, including the United States.
Meanwhile, Target Corp.
TGT -9.71%
stocks dipped Tuesday after the discount retailer announced third-quarter results and comparable sales comparable to expectations. The loss of the retailer could also lower the shares of its competitors.
What do the strategists say?
"Economic data remains strong, but the trend is worsening," said Peter Lazaroff, co-chief investment officer at Plancorp, at MarketWatch. He explained that the recent sentiment was due to the fact that investors thought we had already achieved the fastest growth rates for both the US economy and corporate profits.
"The economic conditions are good, but the chances of deterioration of the economic situation over the next year or so are much greater than an upward surprise," Lazaroff said.
At the same time, Lazaroff pointed out that volatility levels have simply returned to ordinary levels, while the low volatility that characterized much of today's bull market is the most aberrational. "This type of price action is extremely normal," he said. "What was strange, it's the outrageous returns that investors have earned in recent years, with no volatility of fact."
What stocks are under discussion?
Actions of Apple Inc..
AAPL, -3.27%
are down 4%, bringing losses from the previous session to a four and a half month low and threatening to leave equities in bearish territory, defined as a drop of at least 20% from a recent high .
Check-out: Ray Dalio says it's the same as the 1930s for investors "
Actions of Kulicke & Soffa Industries Inc.
KLIC, + 10.05%
after a 7% rise on Monday, the semiconductor maker beat the fourth-quarter earnings forecast. The stock had dropped about 12% at the start of trading, before reversing these losses Monday morning.
Lowe's CosStock of
LOW, -4.02%
is down 2.3%, after the home improvement retailer posted a third quarter tax profit higher than expected, but misplaced comparable sales.
Target stocks traded down nearly 9% on Tuesday after the retailer announced its third-quarter fiscal and comparable store sales results to Wall Street estimates.
Cambell Soup Co.
CPB + 7.20%
Shares are up nearly 7% Tuesday morning, after a third-quarter earnings report showing the company is beating its earnings guidance, while the company has confirmed its optimistic outlook for 2019.
Hormel Foods Corp.
HRL, -2.23%
Shares fell more than 3% Tuesday morning after the absence of income estimates in a Tuesday morning income report.
Actions of Kohl's Corp.
KSS, -8.59%
plummeted 9% Tuesday morning, even after the firm beat Wall Street's earnings and earnings estimates and raised its guidance for 2018. Discounted retailer shares are still up 8% since the beginning of the year.
Actions of Analog Devices, Inc..
ADI + 2.83%
are up, up 3.3% after surpassing analysts' fourth-quarter earnings and revenue estimates when it released its Tuesday morning earnings.
What data do investors watch?
Housing starts reached a seasonally adjusted annual rate of $ 1.228 million in October, while permits reached a rate of $ 1.263 million, with housing starts just below consensus estimates according to a recent survey. MarketWatch economists. On a year-over-year basis, housing starts slowed in 2018.
Investors are particularly focused on the housing market after a disappointing reading of the confidence of Monday's homebuilders, which contributed to Monday's decline.
How are other markets traded?
Asian stock markets fell on Tuesday, the Nikkei of Japan
NIK -1.09%
loss of 1.1%, Hong Kong's Hang Seng Index
HSI, -2.02%
2% and China's composite index in Shanghai
SHCOMP, -2.13%
down 2.1%.
European equities are also trading on Tuesday with the Stoxx Europe 600
SXXP, -0.89%
FTSE 100
UKX, -0.53%
and the German DAX 30
DAX, -1.31%
all falling over 1% on the day.
Crude Oil Futures Contracts
CLF9, -4.13%
continued to fight Tuesday, down more than 5.5%, while gold
GCZ8, -0.07%
is down 0.2% and the US dollar
DXY, + 0.35%
is up 0.3%.
Provide essential information for the US trading day. Subscribe to the free MarketWatch Need to Know newsletter. Register here.
Source link
