FYI: The S&P 500 and Dow Jones Industrial Average dropped in volatile trading on Monday as a boost from news in China and Italy faded and losses in energy and financial stocks weighed, but gains in technology stocks helped limit losses and lifted the Nasdaq.
The Dow swung between gains and losses of more than 100 points, highlighting the choppiness in U.S. equities as they struggle to recover from a recent selloff even as the earnings season gathers steam.
The market opened higher, boosted by a surge in China stocks and positive sentiment across Europe on Moody’s decision to keep Italy’s sovereign rating outlook stable.
But the gains petered out after the open, with analysts saying that news from neither China nor Italy was enough for the Wall Street to hold its levels.
Energy stocks fell throughout Monday’s session, sapping the S&P 500 of an early gain before pulling the index lower. Investors soured on the sector after oil-field services company Halliburton offered investors a weak financial forecast for the remainder of the year that warned of a slowdown in activity, while oil prices briefly hit lows not seen in more than a year.
Shares of banks also stumbled, as losses accelerated among regional lenders and bigger financial firms, reversing some of the gains those stocks enjoyed last week on the heel of some upbeat earnings results.
Monday’s losses cast further doubt on whether another quarter of strong earnings are enough to get the S&P 500 back into record-setting territory, some money managers said.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-10-22/your-evening-briefingBloomberg:
https://www.bloomberg.com/news/articles/2018-10-21/asia-stocks-face-mixed-start-china-rally-in-focus-markets-wrap?srnd=premiumWSJ:
https://www.wsj.com/articles/global-stocks-rise-to-start-the-week-1540195121MarketWatch:
https://www.marketwatch.com/story/stock-futures-point-slightly-higher-as-china-equities-rise-earnings-in-focus-2018-10-22/printIBD:
https://www.investors.com/market-trend/stock-market-today/nasdaq-gains-tech-stocks-marjiuana-plunges/Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-drops-as-china-support-fades-earnings-disappoint-idUSKCN1MW1LRCNBC:
https://www.cnbc.com/2018/10/22/wall-street-set-for-a-slightly-higher-open-amid-earnings.htmlU.K.:
https://www.marketwatch.com/story/banks-miners-led-the-way-higher-for-ftse-100-2018-10-22/printEurope:
https://www.marketwatch.com/story/europe-picks-up-on-global-gains-with-italian-stocks-in-the-lead-2018-10-22/printAsia:
https://www.marketwatch.com/story/big-stock-rally-in-china-bolsters-markets-across-asia-2018-10-21/printBonds:
https://www.cnbc.com/2018/10/22/us-treasury-yields-fall-as-traders-look-ahead-to-data-bond-auctions.htmlCurrencies:
https://www.cnbc.com/2018/10/22/forex-markets-euro-italian-budget-brexit-in-focus.htmlOil:
https://www.cnbc.com/2018/10/22/oil-markets-us-crude-inventories-impending-us-sanctions-on-iran-in-focus.htmlGold
https://www.cnbc.com/2018/10/22/gold-markets-asian-stocks-saudi-arabia-italy-brexit-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx
