Opening Comment — November 19, 2018
S&P 500: 2,736.27
Nasdaq Composite: 7,247.87
Stock index futures are indicating a lower open Monday. The Dow is off 0.2%, while the S&P 500 is losing 0.3% in pre-market action. The Nasdaq 100 is trading 0.4% below fair value on the GLOBEX.
The major averages are poised to open lower Monday, extending last week’s decline in which the Dow and Nasdaq lost 2.2%, and the S&P 500 slipped 1.6%. There are no notable data releases today. This week’s holiday-shortened slate will feature key reports on the U.S. housing market including housing starts (Tuesday) and existing home sales (Wednesday). Rounding out the slate will be updates on durable goods orders, leading indicators, and a preliminary look at manufacturing and services activity for November.
In corporate news, Apple is sliding 1.6% to $190.44 before the open after The Wall Street Journal reported the iPhone maker has slashed production orders for its new product unveiled earlier in the year. In earnings, JD.com is down 2.9% to $22.37 after the Chinese ecommerce giant missed analyst’s revenue estimates.
European bourses are mostly higher near mid-session. The Euro STOXX 600 is up 0.2% while the FTSE 100 is gaining 0.6% Overnight in Asia, the Nikkei 225 gained 0.7% after data showed Japan’s export rose 8.2% year-over-year in October. The Shanghai Composite climbed 0.9%.
Treasuries are weakening with the yield on the benchmark 10-year note up two basis points to 3.09%. In commodities, WTI crude is increasing 0.4% to $56.68/barrel, attempting to recover after posting its sixth consecutive weekly decline. COMEX gold is down 0.1% to $1,221.90/ounce despite a weaker dollar.
Midday Comment — November 19, 2018
DJIA: 25,011.87, down 401.35
S&P 500: 2,693.53, down 42.74
Nasdaq Composite: 7,063.88, down 183.99
Stocks are firmly lower near mid-session Monday. The Dow is down 401 points to 25,011 while the S&P 500 is off 42 points to 2,693. The Nasdaq Composite is losing 183 points to 7,063.
U.S. equities are declining as broad weakness in Tech shares continues to weigh on the major averages. Trade relations are also garnering an outsized focus today, after Vice President Mike Pence reiterated that the U.S. will not yield on tariffs unless China makes significant concessions. On the data front, a report showed homebuilder sentiment in November suffered its steepest monthly decline since February 2014.
All 11 S&P 500 sectors are declining near mid-session. Technology stocks are firmly lower near mid-session as the oft-cited “FAANG” group is down roughly 3.8%. Chipmakers are also suffering sharp-losses with NVIDIA dropping 6.2% to $154.26 and Micron sliding 3.4% to $38.11. Industrials are also underperforming following the latest updates in the lingering trade-dispute between the U.S. and China; notable decliners include Boeing and Caterpillar with shares off 3.7% and 2.4% respectively. In earnings, JD.com is falling 4.2% to $22.10 after the Chinese eCommerce giant missed analyst revenue estimates.
Breadth is negative on issues by roughly 3:1 on both the NYSE and Nasdaq. Composite NYSE volume is more than 1.3 billion shares.
Treasuries are essentially unchanged with the yield on the benchmark 10-year note flat at 3.07%. In commodities, WTI crude is falling 0.3% to $56.32/barrel after posting its sixth consecutive weekly decline. COMEX gold is essentially unchanged at $1,223.50/ounce amid weaker dollar.
Closing Comment — November 19, 2018
DJIA: 25,017.44, down 395.78
S&P 500: 2,690.73, down 45.54
Nasdaq Composite: 7,028.48, down 219.4
Stocks finished lower Monday. The Dow fell 395 points to 25,017, while the S&P 500 dropped 45 points to 2,690. The Nasdaq Composite was down 219 points to 7,028.
U.S. equities extended last week’s decline as broad weakness in Tech shares continued to weigh on the major averages. Trade relations also garnered an outsized focus after Vice President Mike Pence reiterated the U.S. will not yield on tariffs unless China makes significant concessions. On the data front, a report showed homebuilder sentiment in November suffered its steepest monthly decline since February 2014.
Nine of 11 S&P 500 sectors closed in negative territory. The Tech sector led decliners, with Apple sliding 4.0% to $185.86 after The Wall Street Journal reported production orders were slashed for all three iPhone models unveiled earlier in the year. Chipmakers provided a headwind with NVIDIA dropping 12.0% to $144.70 and Micron Technology losing 6.6% to $36.83. The oft-cited “FAANG” fell 4.8%. Industrials also underperformed in sympathy with lingering trade concerns, with Boeing down 4.5% to $320.94 and Caterpillar dipping 3.1% to $125.98. In earnings, JD.com lost 8.4% to $21.11 after the Chinese eCommerce giant missed analyst revenue estimates.
Breadth was negative on issues by 8:3 on the NYSE and 3:1 on the Nasdaq. Composite NYSE volume was more than 3.7 billion shares.
Treasuries were higher with the yield on the benchmark 10-year note down two basis points to 3.05%. In commodities, WTI crude gained 0.5% to $56.76/barrel. COMEX gold rose 0.1% to $1,224.70/ounce amid a weaker dollar.