The Stock Market Sell-Off Continues

Hello traders everywhere. The two-day sell-off continues in the stock market, and it is gaining steam as we head into afternoon trading. The DOW traded lower, as much as 352 points, hammered by a rise in bond yields and a decline in healthcare companies after Amazon, JPMorgan, and Berkshire Hathaway announced that they would form an independent healthcare company to serve their employees in the United States.

This announcement has caused a wave of panic selling in the healthcare sector with Cigna (CI) leading the way by falling over 6% followed by UnitedHealth Group (UNH) falling over 4% on the day. While there hasn't been a lot of information released, it indeed was shot across the bow of the U.S. healthcare business.

stock market sell off continues

The 10-year Treasury yield rose above 2.73%; it's highest level since April 2014. This rise is leading up to the Federal Reserve monetary policy decision which could help shed more light on the outlook for interest rates this year.

The Fed's ongoing two-day meeting will be watched for comments that could raise the likelihood of rates being hiked four times this year, instead of three, especially as inflation readings have firmed in recent readings.

Key levels to watch this week: Continue reading "The Stock Market Sell-Off Continues"

Stocks Rise On Strong Earnings

Hello traders everywhere. Both the DOW and the S&P 500 have hit new intra-day highs and are looking to close out the week at record highs. This latest move higher has been driven by a weaker U.S. Dollar and a strong earnings season so far.

This week has seen some overall market volatility, but a strong finish today will put the three main indexes on track for their best four-week rally since 2016.

Stocks Rise Strong Earnings

The latest saga in the Bitcoin/cryptocurrency space continues to be a lack of regulation. One of Japan's largest cryptocurrency exchanges, Coincheck, said that about $400 million in NEM tokens were lost after the coins were sent "illicitly" outside the venue, spooking investors in a country that's still wary of digital-token exchanges four years after the collapse of Mt. Gox.

Cryptocurrency exchanges, many of which operate with little to no regulation, have suffered a series of outages and hacks amid the trading boom that propelled Bitcoin and its peers to record highs last year. What lasting effect will these continued hacks and outages have on the cryptocurrency space moving forward?

Key levels to watch next week: Continue reading "Stocks Rise On Strong Earnings"

U.S. Dollar Hits New Lows

Hello traders everywhere. The U.S. dollar hit new lows on Wednesday after U.S. Treasury Secretary Steven Mnuchin made comments at the Global Economic Forum in Davos, Switzerland, saying that he welcomed its weakness.

MarketClub's Mid-day Market Report

Fear of protectionism from the U.S. economy had already pushed the dollar to a three-year low, but Mnuchin's comments added to the pressure that's been pushing it down for the year, with the effects rippling across markets as growth in European and emerging-nation economies continues to accelerate past America.

President Donald Trump is scheduled to arrive and speak at the conference Thursday, and many investors fear that he and his team will continue to talk about a trade war and signal a more protectionist policy stance.

Key levels to watch this week: Continue reading "U.S. Dollar Hits New Lows"

Stocks Erase Early Losses After Senate Vote

Hello traders everywhere. Stocks are trading higher after erasing slight losses from earlier in the session, as the Senate reached a deal that would resume full government operations.

The S&P 500 is hitting record highs, rising 0.5%, with energy and telecommunications as the best-performing sectors.

The NASDAQ is also hitting all-time highs, advancing 0.7%, with shares of Netflix Inc. (NASDAQ:NFLX) hitting a record ahead of their earnings today.

The Dow has gained over 70 points to establish a new intra-day record, with The Boeing Company (NYSE:BA) leading the way.

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Members of the Senate are expected to advance a stopgap bill to keep the government open through Feb. 8. Democratic Sen. Mark Warner said the party has the assurance it needs on the budget and immigration issues.

On Saturday, the U.S. government shut down after a bill that would have kept the government funded through mid-February was voted against in the Senate. The shutdown continued for a third day on Monday after the Senate on Sunday failed to reach an agreement to break an impasse before the work week began in Washington.

Key levels to watch this week: Continue reading "Stocks Erase Early Losses After Senate Vote"

Wall Streets Wild Week

Hello traders everywhere. The stock market is finishing up the week mixed, much like the entirety of the week was. We saw wild swings in both the stock market and Bitcoin. And it might not be over yet with a couple of things looming.

There's potential for a government shutdown. On Thursday, the House passed a bill to avoid a government shutdown, but the bill is now in the Senate's hands, where 60 votes are needed to send it to President Donald Trump's desk. Most experts believe that there is a 50/50 percent chance that we will see a shutdown. Historically, a government shutdown has led to a short-term pullback in the stock market.

MarketClub's Mid-day Market Report

Consumer sentiment unexpectedly declined in January to a six-month low as American households viewed the economy less favorably, as reported by the University of Michigan report that was released Friday.

The decline in sentiment included a decrease in a measure of buying conditions for big-ticket goods, indicating consumer spending may slow early this year after a solid holiday shopping season.

The setback in purchasing conditions was mainly due to less attractive pricing, according to the University of Michigan. That was reflected in a pickup in increases in expected inflation rates over the coming year and longer term.

At the same time, the expectations index remained stable, with 70% of respondents saying they thought the impact of the tax reform act would be positive. What's more, the survey showed lingering strength in personal finances. Improved finances were reported by half of all respondents, matching the 2017 average which was the best in 17 years.

Key levels to watch next week: Continue reading "Wall Streets Wild Week"