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US stocks attempted to rise on Tuesday, a day after tech-rich Dow Jones and Nasdaq suffered triple-digit losses as a result of fluctuating oil market, strong dollar and lingering worries on trade negotiations and sluggish international growth.
How did the benchmarks behave?
The Dow Jones Industrial Average
DJIA, -0.19%
fell 20 points, or less than 0.1%, to 25,368, the S & P 500
SPX, + 0.15%
was up 8 points, or 0.3%, to 2,733, while the Nasdaq Composite Index
COMP + 0.17%
rose 20 points, or 0.3%, to 7,220 points.
On Monday, the Dow Jones fell 602.12 points, or 2.3%, to 25,387.18, the S & P 500 lost 54.79 points, or 2%, to 2,726.22, while the Nasdaq Composite Index was crushed, making it lose 206.03 points, or 2.8%, to 7,200.87.
What motivated the market?
Some apparent moderation in trade tensions between the United States and China may be lagging behind Tuesday's optimism. According to the Wall Street Journal, Treasury Secretary Steven Mnuchin met on Friday with Chinese Vice Premier Liu He about a possible resolution of the interminable conflict between Beijing and Washington. The discussion between officials comes in the prospect of a meeting between President Donald Trump and President Xi Jinping, scheduled for the end of the month at the G-20 summit in Buenos Aires.
On Monday, reports said Trump was aiming to impose tariffs on auto imports and to internally broadcast a draft Commerce Department report on auto rates, according to a Bloomberg report. It is a gesture that could intensify the animation between the United States and the rest of the world in terms of trade.
Other tensions, Trump's tweet Monday afternoon could also have helped to exacerbate a massive sell-off in the price of crude oil, which has declined 11 consecutive declines, marking its longest skid ever recorded. Trump expressed disapproval of a possible reduction in production of Saudi Arabia and OPEC, and said the prices "should be much lower depending on the offer! "
Oil has become a pole of attraction for investors, some bearish suggesting that crude oil prices
CLZ8, -2.24%
in bearish territory – a decline of at least 20% from a recent peak – is a telling sign of a gloomy global economic expansion.
What do the strategists say?
"The headwinds that fueled the market earlier this year, such as synchronized global growth and loose monetary policy, have officially turned into headwinds," said Eric Wiegand, Senior Portfolio Manager at the US Bank, MarketWatch. .
"The real struggle for stock prices is now the very visible potential for political mistakes," said Weigand, pointing out that investors were rightly concerned that the Trump administration was failing to move closer to the China on trade issues and the Fed is raising rates too aggressively, even as inflationary pressures seem to be easing.
According to reports, Treasury Secretary Steven Mnuchin reportedly discussed trade issues with Chinese Vice Premier Liu last Friday, he said. "But investors are less and less receptive to headlines" that suggest a possible easing of commercial sessions, but that lack information on the concrete steps to take to reduce trade barriers.
"Stock markets are on the rise this morning, with the sentiment being slightly more optimistic despite the political risks," said David Madden, market analyst at CMC Markets UK.
"Apple will be in the center again today after losing more than 5% last night. The technology giant has been under pressure since the group released its latest quarterly figures and the number of iPhone sales has not been reached. The company will no longer report unit sales of iPhones and iPad, which could indicate that we are at the top of the iPhone, "he said.
What actions were under discussion?
Actions of Home Depot Inc.
HIGH DEFINITION, -1.32%
were 1.3% higher after the home improvement giant reported quarterly results above expectations and raised expectations.
AppleStock of
AAPL, -0.88%
remain under pressure after iPhone maker slipped 5% after Lumentum Holdings Inc. decision
LITE + 6.33%
reduced revenue and revenue prospects, claiming to have received a request from "one of its largest industrial and consumer customers for laser diodes for 3D detection" in order to "significantly reduce shipments" , what we think is Apple.
Apple's slippage has fueled a widespread sell-off in the technology and semiconductor market, with a popular fund for the group, ETF iShares PHLX Semiconductor
SOXX, + 1.26%
finishing down 4.5% on Monday.
Goldman Sachs Group Inc.
GS + 0.86%
rose by 2.5% early in the session Tuesday, after the shares of the investment bank slid Monday to 7.5%, representing its worst day in about seven years.
Boeing Co.
BA, -3.31%
The stock is under review Tuesday after the Wall Street Journal reported that the aircraft builder had retained information from airline directors and pilots about a new stall prevention system added to two of its aircraft models. 'plane. This new feature may have played a role in the Lion Air crash last month. The stock is down 2.7% Tuesday.
Actions of Tyson Foods Inc.
TSN -5.49%
are down 6.3% Monday morning, after the processed food company reported a fourth-quarter revenue below Wall Street expectations and released poor forecasts.
HollyFrontier Corp.
HFC -3.26%
stock is down 0.5% after the company announced Tuesday morning the acquisition of the private company Sonneborn US Holdings Inc. and SA newborn from the U.A family for a cash consideration of $ 655 million, including working capital valued at $ 72 million.
Actions of Advance Auto Parts, Inc.
AAP + 8.88%
are up more than 9% Tuesday morning, after the company beat the third quarter forecast and raised its forecast for 2018.
Johnson Controls International PLC
JCI + 3.51%
Shares are up 3.1% after the commercial services company announced that it would sell its Power Solutions business to Brookfield Business Partners for $ 13.2 billion in cash.
Vodaphone Group PLC
VOD, + 8.18%
Shares rose 7.8%, following a call for earnings in which new CEO Nick Reed assured investors that the company would not reduce its dividend and could even increase shareholder payments through cost reduction and debt.
Amazon.com Inc.
AMZN, -0.79%
in the meantime, the trade will probably be active after the e-commerce giant has chosen Northern Virginia and New York as their second and third seats.
Which data and which stakeholders of the Fed are ahead?
The small business optimism index of the National Federation of Independent Business fell 0.5 percentage point to stand at 107.4 in seasonally adjusted data in October, its lowest point. level in four months.
A report on the federal budget is due at 2 pm Eastern Time.
On the Fed front, Federal Reserve Board Gov. Lael Brainard was scheduled to deliver a speech at 10 am, chairman of the Minneapolis Federal Reserve Neel KashkarI had to participate in a question and answer session at the same time. President of the Philadelphia Fed Patrick Harker was on track to deliver a speech at 2:20 pm, while the new member, San Francisco Fed President Mary Daly is ready to speak at 5 pm
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