[ad_1]
The shares recorded their worst fall in one day in a month on Wednesday.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Dow (^ DJI) fell by 3.15%, or 831.83 points, with the 30 components of the blue-chip index ending in red. The S & P 500 (^ GSPC) lost 3.29%, or 94.66 points for its fifth day of losses and its longest losing streak since the end of 2016. The declines were the largest one-day percentage declines for both indexes since February. Nasdaq (IXIC) slipped 4.08%, or 315.97 points. "data-reactid =" 16 ">The Dow (^ DJI) fell by 3.15%, or 831.83 points, with the 30 components of the blue-chip index ending in red. The S & P 500 (^ GSPC) lost 3.29%, or 94.66 points for its fifth day of losses and its longest losing streak since the end of 2016. The declines were the largest one-day percentage declines for both indexes since February. Nasdaq (IXIC) slipped 4.08%, or 315.97 points.
10-year Treasury yields were at 3.193%, while 30-year bonds rose slightly to 3.375%.
Generally, when stock prices fall precipitously, money enters the bond market, resulting in lower yields. Peter Tchir of Academy Securities said Wednesday in an email that the S & P 500's more than 1.5% dip and the simultaneous rise in long-term yields were "very unusual."
"It's only the 4th time since 01/01/2016," Chir observed. "The last 2/2 and 2/8 ended the VIX ETN / ETF fiasco book."
Analysts were unable to identify a particular event that triggered Wednesday's sale. But the rise in interest rates in recent days is certainly worrying.
"Stock market declines have hurt confidence and spending," said Chris Rupkey, of the Bank of Tokyo-Mitsubishi, in an email Wednesday afternoon. "We do not know who is to blame here, it's a bit like trying to find what or who's responsible for the dangerous hurricane in Florida today, but make no mistake, the stock market downturn, maybe triggered by rising bond yields, is just as dangerous. "
Wednesday's stock sell-off was exacerbated after "the high-flying stocks that kept indexes up year-over-year" turned upside down, Yahoo Finance Jamie Cox, managing partner of Harris Financial Group told Yahoo Finance. quoting Amazon and Netflix: "This kind of stock has really had a very bad day, and it's actually quite late and kind of what you would see in a normal correction," he said.
Cox added that investors "trying to guess some recession activity or worse future market" might not be up to the task. "It's not at all that – it's a correction that had to happen since those actions had really gotten ahead," he said.
Investors holding more diversified positions will likely benefit from the sale as the money will go into more under-represented market sectors this year, including utilities and staples, Cox said. "These types of stocks did not really work well this year and should have done better. So, as this rotation happens, that's what you'll see, "he said.
NEWS: Hurricane Michael hits Florida
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Hurricane Michael was turned into a Category 4 storm Wednesday morning, has become the most powerful storm to hit the continental United States for decades. The wind speed reached 155 miles at the time when the storm landed in Florida. Duke Energy warned earlier that Hurricane Michael could cause up to 200,000 power outages in the area served by the company in Florida, and Bloomberg said the storm should cause damage amounting to $ 16 billion. "Data-reactid =" 26 ">Hurricane Michael was turned into a Category 4 storm Wednesday morning, has become the most powerful storm to hit the continental United States for decades. The wind speed reached 155 miles at the time when the storm landed in Florida. Duke Energy warned earlier that Hurricane Michael could cause up to 200,000 power outages in the company's Florida area, and Bloomberg announced the storm is expected to cause $ 16 billion in damage. .
The Securities and Exchange Commission announced Wednesday in a statement that it "closely watched the impact of Hurricane Michael" on the financial markets and investors.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""The dedicated staff of the SEC is gearing up to provide support to market players as Hurricane Michael approaches the Gulf," said SEC chairman Jay Clayton in a statement. "While we are assessing the need to extend filings for filing and other regulatory requirements, to help ensure access to securities accounts, and to monitor storm-related fraud, we encourage anyone on our site to way to follow closely the instructions of local officials. before, during and after the storm."data-reactid =" 28 ">"The dedicated staff of the SEC is gearing up to provide support to market players as Hurricane Michael approaches the Gulf," said SEC chairman Jay Clayton in a statement. "While we are assessing the need to extend filings for filing and other regulatory requirements, to help ensure access to securities accounts, and to monitor storm-related fraud, we encourage anyone on our site to way to follow closely the instructions of local officials. before, during and after the storm.
Traders work on the New York Stock Exchange (NYSE) floor in New York, United States, October 3, 2018. REUTERS / Brendan McDermid
STOCKS: CVS-Aetna Agreement Wins Ministry of Justice and Sears Approval to Collapse
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "CVS received Wednesday the preliminary approval of the Department of Justice for a $ 69 billion investment merger with the giant health insurance Aetna. The green light was conditional on Aetna's Medicare Part D on the prescription drug market to ease regulators' competition concerns overlap of CVS and Aetna drug plans. The merger is one of the largest contracts in the health sector to obtain antitrust approval from the Department of Justice and follows Cigna's recent acquisition of $ 52 billion from Express Scripts Holding. CVS shares rose nearly 1% to $ 80.22 at 11:42 am, while Aetna shares (AET) rose 1.34% to $ 206.45 per share. "Data-reactid =" 45 ">CVS received Wednesday the preliminary approval of the Department of Justice for a $ 69 billion investment merger with the giant health insurance Aetna. The green light was conditional on Aetna's Medicare Part D on the prescription drug market to ease regulators' competition concerns overlap of CVS and Aetna drug plans. The merger is one of the largest contracts in the health sector to obtain antitrust approval from the Department of Justice and follows Cigna's recent acquisition of $ 52 billion from Express Scripts Holding. CVS shares rose nearly 1% to $ 80.22 at 11:42, while Aetna shares (AET) rose 1.34% to $ 206.45 per share.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Sears (SLHD) would intend to go bankrupt this weekend, the troubled retailer may not be able to cope with the impending payment of its debt. Sears owner Eddie Lampert has argued for a debt restructuring plan that would avoid a Chapter 11 filing, but is now focused on an agreement to preserve the value of stakeholders in a restructuring court said Bloomberg, citing unknown people familiar with the matter. Sears shares lost 16.83% to $ 0.49 per share at the end of the trading session on Wednesday. "Data-reactid =" 46 ">Sears (SLHD) would intend to go bankrupt this weekend, the troubled retailer may not be able to cope with the impending payment of its debt. Sears owner Eddie Lampert has argued for a debt restructuring plan that would avoid a Chapter 11 filing, but is now focused on an agreement to preserve the value of stakeholders in a restructuring court said Bloomberg, citing unknown people familiar with the matter. Sears shares lost 16.83% to $ 0.49 per share at the end of the trading session on Wednesday.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tesla (TSLA) is in the process of obtaining land in Shanghai Bloomberg reported for the first electric car manufacturer's factory outside the United States, citing anonymous people familiar with the projects. Tesla signed an agreement with the Chinese authorities in July for the construction of a new car factory in Shanghai, whose general manager Elon Musk said it could eventually produce 500,000 electric vehicles a year. During a conference call on the results, Mr Musk told analysts and investors that it would take about $ 2 billion of investment to allow the plant to produce around 250 000 vehicles a year. "Data-reactid =" 47 ">Tesla (TSLA) is in the process of obtaining land in Shanghai Bloomberg reported for the first electric car manufacturer's factory outside the United States, citing anonymous people familiar with the projects. Tesla signed an agreement with the Chinese authorities in July for the construction of a new car factory in Shanghai, whose general manager Elon Musk said it could eventually produce 500,000 electric vehicles a year. Musk told analysts and investors during a earnings conference call in August that it would take about $ 2 billion worth of investment for the plant to produce about 250,000 vehicles per year. year.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In addition, James Murdoch, outgoing CEO of Twenty-First Century Fox, would be the main candidate to replace Elon Musk as president of Tesla, reported Wednesday the Financial Times, citing two people close to the case. Musk has reached an agreement with the SEC demanding in particular that he step down as president of Tesla for at least three years. The settlement came as a result of a lawsuit filed by the SEC against Musk, alleging that he had defrauded investors with August statements stating that he was intending to privatize Tesla with "secured financing". Tesla shares lost 256.25% to $ 256.88 each at the close of trading on Wednesday. "Data -reactid =" 48 ">In addition, James Murdoch, outgoing CEO of Twenty-First Century Fox, would be the main candidate to replace Elon Musk as president of Tesla, reported Wednesday the Financial Times, citing two people close to the case. Musk has reached an agreement with the SEC demanding in particular that he step down as president of Tesla for at least three years. The settlement came as a result of a lawsuit filed by the SEC against Musk, alleging that he had defrauded investors with August statements stating that he was intending to privatize Tesla with "secure financing". Tesla shares lost 256.25% to $ 256.88 each Wednesday, at the close of markets.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cannabis stocks in Canada have increased as a result of reports that tobacco company Altria (MO) is in talks to acquire a stake in Aphria (APHQF). Altria, the Marlboro cigarette maker, is interested in a minority stake in Aphria that could potentially become a majority in the long run, the Globe and Mail first reported. Aphria shares rose 15.07% to $ 15.43 per share at the end of the trading session on Wednesday. "Data-reactid =" 49 ">Cannabis stocks in Canada have increased as a result of reports that tobacco company Altria (MO) is in talks to acquire a stake in Aphria (APHQF). Altria, the Marlboro cigarette maker, is interested in a minority stake in Aphria that could potentially become a majority in the long run, the Globe and Mail first reported. Aphria's stock rose 15.07% to $ 15.43 a share at the end of the trading session on Wednesday.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "LVMH, which owns the biggest fashion brands, has fallen on luxury values Louis Vuitton, Christian Dior and Marc Jacobs, are at risk of losing customers in key markets in China. About a third of LVMH's revenues come from Asia. The companies were again hit on Wednesday after Morgan Stanley underweighted its position in the luxury goods sector relative to a neutral position, citing declining demand from Chinese consumers. Shares of LVMH (MC.PA) sold 7.14% to $ 265.30 each at the close of trading on Wednesday. "data-reactid =" 50 ">LVMH, which owns the biggest fashion brands, has fallen on luxury values Louis Vuitton, Christian Dior and Marc Jacobs, are at risk of losing customers in key markets in China. About a third of LVMH's revenues come from Asia. The companies were again hit on Wednesday after Morgan Stanley underweighted its position in the luxury goods sector relative to a neutral position, citing declining demand from Chinese consumers. Shares of LVMH (MC.PA) sold 7.14% to $ 265.30 each at the close of trading on Wednesday.
ECONOMY: Mortgage applications down and producer prices rise
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "US Mortgage Applications Decreased Last Week Due to Real Estate Loan Costs reached their highest level in more than seven years. The composite market index, which measures the volume of mortgage applications, declined 1.7% on a seasonally adjusted basis for the week ending October 5th, according to a statement from the Mortgage Bankers Association. Falling demand for mortgage refinancing hurt mortgage lending, as refinancing volume fell 3% last week. "Data-reactid =" 52 ">US Mortgage Applications Decreased Last Week Due to Real Estate Loan Costs reached their highest level in more than seven years. The composite market index, which measures the volume of mortgage applications, declined 1.7% on a seasonally adjusted basis for the week ending October 5th, according to a statement from the Mortgage Bankers Association. Falling demand for mortgage refinancing hurt mortgage lending, as refinancing volume fell 3% last week.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the United States, producer prices rose 0.2% in September, which is comparable to that of the average economist. expectations based on data compiled by Bloomberg. The results, published Wednesday by the Department of Labor, represent a recovery from a drop of 0.1% in August and mark the first increase in three months. The main measure excluding food and energy was also 0.2%, which is in line with expectations, while the main alternative measure excluding commercial services, food and energy increased by 0.4% on a month, exceeding analysts' average expectations by 0.2%. "-reactid =" 53 ">In the United States, producer prices rose 0.2% in September, which is comparable to that of the average economist. expectations based on data compiled by Bloomberg. The results, published Wednesday by the Department of Labor, represent a recovery from a drop of 0.1% in August and mark the first increase in three months. The main measure excluding food and energy was also 0.2%, which is in line with expectations, while the main alternative measure excluding commercial services, food and energy increased by 0.4% on a month, exceeding analysts' average expectations by 0.2%.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""The commercial services component, which measures margins for retailers and wholesalers, has only increased 0.1% after two sharp declines," Ian Shepherdson, Chief Economist at Pantheon Macroeconomics, said Wednesday. "It remains well below the trend, which is on the rise, so we expect a big rebound in October." "data-reactid =" 54 ">"The commercial services component, which measures margins for retailers and wholesalers, has only increased 0.1% after two sharp declines," said Ian Shepherdson, chief economist at Pantheon Macroeconomics, on Wednesday. "It remains well below the trend, which is on the rise, so we expect a big rebound in October."
–
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 56 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read more about Emily:"data-reactid =" 57 ">Read more about Emily:
Weed stock Tilray sends investors in an incredible adventure
Tilray shares surge as company says it exports cannabis to sick children in Australia
A trade war will not shake the US economy "hot"
White House economist: tariffs are hurting China more than the United States
[ad_2]
Source link
