Hello traders everywhere. The move lower started early Friday in Europe when IHS Markit said that manufacturing activity in Germany dropped to its lowest level in more than six years in March. In France, manufacturing and services slowed down to their lowest levels in three months and two months, respectively. For the eurozone as a whole, manufacturing fell to its lowest level since April 2013. This data sent the German 10-year bund yield to their lowest level since 2016, briefly dipping into negative territory.
Once trading opened in the U.S. we got news that the spread between the 3-month Treasury bill yield and the 10-year note rate turned negative for the first time since 2007 - thus inverting the so-called yield curve - according to Refinitiv Tradeweb data. An inverted yield curve happens when short-term rates surpass their longer-term counterparts. This is considered a trustworthy indicator of a recession coming in the near future.
These moves come after U.S. central bank surprised investors by adopting a sharp dovish stance on Wednesday, projecting no further interest rate hikes this year and ending its balance sheet roll-offs. Market sentiment was boosted by the Fed's updated outlook on interest rates, but the reasons behind it caused some concern.
Key Levels To Watch Next Week:
Continue reading "Stocks Drop On Fears Of An Economic Slowdown"
Hello traders everywhere. The DOW closed lower for the first time in five days Tuesday, led by declines in Apple, all because investors were puzzled over conflicting reports over the progress of U.S.-China trade negotiations.
The index lost 26 points. The S&P 500 ended the day just below breakeven, while the Nasdaq Composite closed 0.1% higher. Both the S&P 500 and Nasdaq rose as much as 0.7%, while the Dow traded nearly 200 points up at its session high before heading lower for the day.
Stocks headed lower after Bloomberg reported that U.S. officials are worried China may be pushing back against U.S. demands in the countries' ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck. Continue reading "Stock Market Takes A Breather"
Hello traders everywhere. After a tough week where we saw the market sell-off over -2% the market bounced back with some vigor. Both the S%P and NASDAQ are posting gains over +2% while the DOW was fighting to stay in positive territory after being weighed down by steep losses by Boeing in early trading, but Boeing is making a comeback as we enter afternoon trading.
In fact, the NASDAQ will post its best week of the year with a gain over +3.6% and that will also be the 11th positive week in the last 12 weeks. The S&P 500 will have a weekly gain of +2.7% and the DOW brings up the rear with a weekly positive gain hovering right around +1%.
The U.S. dollar hasn't faired as well losing -.8% as traders await news on a Brexit deal. After votes on Tuesday and Wednesday, the UK parliament is back in session today for a third (and hopefully final) vote this week. After rejecting UK PM Theresa May’s deal on Tuesday then rejecting then a no deal, “hard Brexit” on Wednesday, all signs point to UK parliament voting in favor of an extension to the negotiating window, currently set to expire on March 29. Continue reading "Bounce Back Week For The Market"
Hello traders everywhere. The S&P 500 and NASDAQ are on the rise for a third straight day, wiping out last weeks losses. The S&P 500 reached a four-month high as it held above the key 2,800 level that it has struggled to breach in recent weeks. Crude oil rose toward $58 a barrel in New York.
The Commerce Department announced today that the nondefense durable goods orders posted their largest increase in six months in January, rising 0.8%. Overall durable goods orders also rose 0.4% while economists polled by Refinitiv expected a decline of 0.5%. The economic data overshadowed a weaker-than-expected print on the producer price index. Continue reading "Stock Market Lifted By Positive Economic Data"
Hello traders everywhere. The three major indexes fell Friday, on pace for their worst week since December, after data showed hiring growth slowed significantly in February. The declines came after data from the Labor Department showed U.S. nonfarm payrolls rose a seasonally adjusted 20,000 in February, missing economists' expectations of 180,000 new jobs.
Still, the report wasn't all doom and gloom. The unemployment rate ticked down to 3.8% from 4% a month earlier, while wages rose 3.4% from a year earlier, the strongest pace since April 2009.
For the first time since December, all three indexes will post weekly losses over -2.6%. The DOW did finish last week with a slight loss of -.02%, the s&P 500 had a weekly loss of -.22% in January, but this will be the first weekly loss for NASDAQ, breaking a 10-week winning streak. Both the S&P 500 and NASDAQ issued green monthly Trade Triangles recent, but the DOW remains in a sideline position with a red monthly Trade Triangle. Continue reading "Stocks Fall On Weak Jobs Report"