, March 28, 2018.
The fears did not abate as soon as the market would have liked. Monday’s one-day recovery didn’t last long; Trump, showmanship and all, has continued to spook investors, China and the U.S. still in crisis mode looking to avert a game of chicken.
Daily Summary: The Dow was off 1.43%, the S&P plunging 1.73%. Tech heavy NASDAQ took the pot with losses of 2.93%. Each of the major indexes suffered their fourth losing day in 5 days.
It was only the defensive sectors like consumer staples, telecom, real estate and utilities which ended up.
If the tariffs weren’t enough, now we’ve got other monkey wrenches. It would be daunting enough to have the prospect of inflation with fiscal stimulus at a time when the Central Bank is trying to ease away from Quantitative Easing (QE). Throw in geopolitical uncertainty, a Briain neither in nor out, and Trump’s promises which change by the day, allies included and then excluded and there really is little way to plan.
Facebook (FB) is perhaps #1, and now it’s getting messy. The company CEO has for all intents and purposes been commissioned to testify before Congress. And obviously the fear is that regulation could sweep through the entire sector which is what drove the market down yesterday.
Senior market strategist at Global Markets Advisory Group, Peter Kenny, noted, “What it really amounts to is a complete lack of knowing what to expect,” adding, “It seems so open-ended, there is a lot of risk here and investors don’t like uncertainty and this is the definition of uncertainty.”
On the individual stock front, some stocks were rather noteworthy. Alphabet (GOOGL.O) tumbled 4.5 percent after an appeals courts revived a multibillion dollar copyright case ]by Oracle Corp (ORCL.N) against ir. Nvidia (NVDA.O) imploded 7.8% after temporarily halting self-driving tests worldwide. With a person killed on an automatic car from Uber recently, the matter is a salient one at present.
Wednesday’s Hot Stocks: NKE, SCVL, SONC, RH, LULU, BB, WBA
Tesla (TSLA.O) collapsed 8.2% after the U.S. National Transportation Safety Board began an investigation into the company after a driving death on an automatic car.
Twitter (TWTR.N) nosedived 12 percent after Citron Research called the stock “most vulnerable.” The bigest fear now is what happens when the anxiety gets contagious.
Today Economic Calendar: Be primed for MBA Mortgage Applications at 7:00, followed by GDP numbers and International Trade in Goods at 8:30. Pending home sales will be released at 10:00, followed by the EIA Petroleum Status Report at 10:30.
Have a great trading day!
|Tuesday||9:00||S&P Corelogic Case-Shiller HPI||6.2 %||Medium|
|Wednesday||8:30||Wholesale Inventories [Advance]||0.5 %||Medium|
|Wednesday||10:00||Pending Home Sales Index||2.7 %||Medium|
|Wednesday||10:30||Oil Inventories||-2.6 M barrels||Low|
|Thursday||8:30||Jobless Claims||228 K||Medium|
|Thursday||8:30||Personal Income and Outlays||0.4 %||Medium|
|Friday||Good Friday – Market is Closed|
|TM||Toyota Motor Corporation||AM||Monday|
|DB||Deutsche Bank Aktiengesellschaft||AM||Monday|
|RHT||Red Hat, Inc.||PM||Monday|
|MKC||McCormick & Company, Incorporated||AM||Tuesday|
|LULU||Lululemon Athletica Inc.||PM||Tuesday|
|WBA||Walgreens Boots Alliance, Inc.||AM||Wednesday|
|VRNT||Verint Systems Inc.||PM||Wednesday|
|WOR||Worthington Industries, Inc.||AM||Thursday|
|SAIC||Science Applications International Corporation||AM||Thursday|
|STZ||Constellation Brands, Inc.||AM||Thursday|
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