Opening Comment — June 18, 2018
DJIA: 25,090.48
S&P 500: 2,779.66
Nasdaq Composite: 7,746.38
Stock index futures are indicating a lower open Monday. The Dow is down 0.8% while the S&P 500 is off 0.7% in premarket action. The Nasdaq 100 is trading 0.8% below fair value on the GLOBEX.
The major averages are poised to decline Monday as investors digest the latest updates in the tit-for-tat tariff announcements. Over the weekend, Chinese leaders announced $34 billion in additional tariffs on U.S. imports, including crude oil. The move came in response to President Trump’s decision to levy an additional $50 billion in duties on Chinese goods. In central bank news, Atlanta Fed President Raphael Bostic and incoming New York Fed President John Williams are both expected discuss the strength of the U.S. economy and the potential for further tightening in separate speeches. There are no major economic updates scheduled.
In corporate news, JD.com is rising 6.2% to $46.27 after announcing a new strategic partnership with Google parent Alphabet. Meanwhile, Industrial and Energy shares could be active in today’s session as both groups were targets of the latest rounds of tariffs.
European bourses are lower at midsession. The European STOXX 600 is falling 1.1%, while the FTSE is declining 0.4% in London. Overnight in Asia, the Nikkei gave back 0.8%.
Treasuries are strengthening as the yield on the benchmark 10-year note is off two basis points to 2.90%. In commodities, WTI crude is off less than 0.1% to $66.69/barrel. COMEX gold is up 0.3% to $1282.20/ounce amid a slightly weaker dollar.
Midday Comment — June 18, 2018
DJIA: 24,914.76, down 175.72
S&P 500: 2,768.4, down 11.26
Nasdaq Composite: 7,730.07, down 16.31
Stocks are lower near mid-session Monday. The Dow is falling 175 points to 24914 while the S&P 500 is off 11 points to 2768. The Nasdaq Composite is losing 16 points to 7730.
The major averages are retreating as investors digest the latest global trade updates. Over the weekend, Chinese leaders announced $34 billion in additional tariffs on U.S. imports, including crude oil. The move came in response to President Trump’s decision to levy an additional $50 billion in duties on Chinese goods. In central bank news, investors will hear from Atlanta Fed President Raphael Bostic and incoming New York Fed President John Williams. There are no major economic updates scheduled.
Eight of 11 S&P 500 sectors are lower with Telecom shares leading laggards. Health Care stocks are notable decliners with Biogen off 6.1% to $286.11 after a competing biopharmaceutical company, PTC Therapeutics, revealed positive research results. Energy shares are outperforming as oil prices rebound from Friday’s sell-off. In other corporate news, JD.com is rising 1.8% to $44.14 after announcing a new strategic partnership with Google parent Alphabet. Intel is losing 3.9% to $52.93 after the tech giant was the subject of an analyst downgrade.
Breadth is negative on issues by 9:8 on the NYSE and 8:7 on the Nasdaq. Composite NYSE volume is more than 1.7 billion shares.
Treasuries are mixed with the yield on the benchmark 10-year note flat at 2.92%. In commodities, WTI crude is adding 0.2% to $65.21/barrel. COMEX gold is up 0.3% to $1278.30/ounce.
Closing Comment — June 18, 2018
DJIA: 24,987.47, down 103.01
S&P 500: 2,773.87, down 5.79
Nasdaq Composite: 7,747.023, up 0.65
The major averages fluctuated as investors digested the latest global trade updates. Over the weekend, Chinese leaders announced $34 billion in additional tariffs on U.S. imports, including crude oil. The move came in response to President Trump’s decision to levy an additional $50 billion in duties on Chinese goods. In central bank news, Atlanta Fed President Raphael Bostic commented that “optimism has almost completely faded” amid trade fears. Incoming New York Fed President John Williams is slated to speak following the close. There were no major economic updates scheduled.
Eight of 11 S&P 500 sectors ended lower with Telecom shares leading laggards. Health Care stocks were notable decliners with Biogen off 5.2% to $289.12 after a competing biopharmaceutical company, PTC Therapeutics, revealed positive research results. Energy shares outperformed as oil prices rebound from Friday’s sell-off. In Tech, Square reached an all-time high, gaining 2.7% to $66.20, following news New York granted the mobile payment provider a virtual-currency license. Intel lost 3.4% to $53.22 after the semiconductor giant was the subject of an analyst downgrade.
Breadth was positive on issues by 4:3 on the NYSE and 8:7 on the Nasdaq. Composite NYSE volume was more than 4.2 billion shares.
Treasuries are mixed with the yield on the benchmark 10-year note flat at 2.92%. In commodities, WTI crude added 1.1% to $65.78/barrel. COMEX gold gained 0.1% to $1276.20/ounce.