– Stocks dropped on Monday, the first trading day of
December, as investors digested disappointing economic data along with
the latest trade news after capping a month that featured blistering
The Dow Jones Industrial Average fell 251 points, or 0.9%.
The S&P 500 pulled back 0.9% while the Nasdaq Composite traded 1.4%
lower. The major averages started off the session with slight gains
before turning lower.
Shares of Facebook, Amazon, Alphabet and
Apple all dropped more than 1%. Netflix traded 2.7% lower. Roku, which
has been one of the hottest stocks of 2019, plummeted more than 15%.
The Cboe Volatility Index, which is regarded as the best fear gauge in the market, rose to 14.8 from 12.6.
losses came after a strong performance in November. The major averages
had their biggest monthly gains since June, rallying to record highs.
The S&P 500 climbed 3.4% last month while the Dow advanced 3.7%. The
Nasdaq rallied 4.5%.
Manufacturing activity in the U.S.
continued to contract last month, the Institute for Supply Management
said. The ISM Manufacturing PMI dipped to 48.1 in November. That’s below
an estimate of 49.4. Stocks hit their session lows after the data was
FRIDAY – Stocks hovered around the flatline on Friday but remained on track for solid weekly gains after trade optimism sparked a massive rotation out of bonds and lifted equities to record levels.
The Dow Jones Industrial Average traded 38 points lower, or 0.1%. The S&P 500 slid 0.1% while the Nasdaq Composite climbed 0.3%.
Disney was among the best-performing stocks on Wall Street after the company released its latest quarterly figures. Health care was the best-performing sector in the S&P 500, gaining 0.4%.
The major averages were poised to extend their weekly winning streaks despite Friday’s muted performance amid an improving tone around global trade
The Dow is up 1.1% week to date. The S&P 500 and Nasdaq Composite are up 0.6% and 0.8%, respectively, for the week. It would be the third straight week of gains for the Dow while the S&P 500 headed for its fifth straight weekly gain. The Nasdaq was on pace for a six-week winning streak.
Sentiment was also boosted this week by corporate earnings results that have generally beaten expectations. Of the 425 S&P 500 companies that have reported thus far, 74% have beaten estimates.
FRIDAY – U.S. stock futures pointed to a little changed open on Friday following a record-setting session for the major stock indexes.
Around 7 a.m. ET, Dow Jones Industrial Average futures were unchanged but pointed to a gain of 33 points at the open. S&P 500 and Nasdaq 100 futures pointed to a flat open.
The small implied gain for the Dow comes after Disney shares jumped more than 5% on great earnings. Disney’s revenues for its media and networks segment topped estimates, while sales for the company’s parks, studio entertainment and direct-to-consumer businesses also beat expectations.
Stocks rose to record highs on Thursday after the world’s two largest economies reportedly agreed to remove existing trade tariffs, sparking a huge rotation into equities and out of bonds. The U.S. 10-year Treasury yield jumped more than 15 basis points at one point on Thursday, its biggest upward move since the 2016 election.
The increasingly positive tone around global trade put the major indexes on track for solid weekly gains. Entering Friday’s session, the Dow is up 1.2% week to date. The S&P 500 and Nasdaq Composite are both up 0.6% for the week through Thursday’s close. It would be the third straight week of gains for the Dow while the S&P 500 headed for its fifth straight weekly gain. The Nasdaq was on pace for a six-week winning streak.
On the data front, consumer sentiment figures are due out at 10 a.m. ET, as well as wholesale trade numbers.
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U.S. stock index futures turned sharply
higher Thursday after China said the world’s two largest economies had
agreed to remove existing trade tariffs.
Around 8:30 a.m. ET, Dow
Jones Industrial Average futures were up 154 points, implying an
opening gain of 138 points. S&P 500 and Nasdaq 100 futures also
pointed to solid gains.
The gains put the Dow and S&P 500 on track to reach fresh record highs at the open.
Feng, a ministry spokesperson for China’s Commerce Ministry, said that
both sides had agreed to simultaneously cancel some existing tariffs on
one another’s goods, according to the country’s state broadcaster. The
ministry spokesperson said that both sides were closer to a so-called
“phase one” trade agreement following constructive negotiations over the
past two weeks.
One important condition for a limited trade
agreement, Feng insisted, was that the U.S. and China must remove the
same amount of charges at the same time.
On the data front, the latest weekly jobless claims numbers came in at 211,000, down slightly from 218,000 in the previous week.
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– Stocks were set to open higher on Tuesday, following a
record close in the previous session, as investors grew more bullish on a
potential U.S.-China trade deal as both sides consider more rollbacks
Futures on the Dow Jones Industrial Average rose 70
points and indicated a positive open of more than 58 points, while
futures on the S&P 500 and Nasdaq Composite were also higher. Major
averages are on track for a third straight positive session.
is pushing President Donald Trump to remove more tariffs on about $125
billion worth of Chinese goods imposed in September as part of the
“phase one” trade deal, Reuters reported Monday evening. A U.S. official
told Reuters the fate of the Dec. 15 tariffs is being considered as
part of negotiations.
Strong earnings, more promising economic
data and optimism over a resolution on trade with China drove the Dow to
all-time highs on Monday, following the S&P 500 and Nasdaq’s new
records last week.
The Dow’s year-to-date gain now stands at
around 18%, while the S&P 500 is up more than 22% and the Nasdaq
more than 27% so far this year.
Traders will also have eyes on a raft of economic data Tuesday morning. September balance of trade, import and export figures are due for release at 9:30 a.m. ET before November Redbook data at 9:55 a.m. ET.
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FRIDAY – Stocks traded lower on Friday amid weak overseas data, but remained on track to post solid weekly gains after the release of better-than-expected earnings.
The Dow Jones Industrial Average traded 97 points lower, or 0.4%. The S&P 500 pulled back 0.3% while the Nasdaq Composite declined by 0.5%.
More than 70 S&P 500 companies have reported calendar third-quarter earnings this week. Of those companies, 81% have posted better-than-expected results, FactSet data shows.
Weak data from China weighed down the market on Friday.
Still, concerns over the state of the global economy lingered. Overnight, China posted its weakest growth in nearly three decades, as the U.S.-China trade war hit demand at home and abroad. The world’s second-largest economy grew 6% in the third quarter, less than expected, and its weakest pace of expansion in over 27 years.
Sentiment around U.S.-China trade talks improved slightly this week, however. Larry Kudlow, director of the National Economic Council, told CNBC’s “Squawk Box” on Thursday there is “a lot of momentum” to get a deal done.
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Stocks were set to edge lower on Wednesday, even after House Speaker Nancy Pelosi said she will launch a formal impeachment inquiry on President Donald Trump.
As of 7:09 a.m. ET
Wednesday, Dow Jones Industrial Average futures implied a loss of more
than 10 points at the open. S&P 500 and Nasdaq 100 futures also
indicated slight opening losses.
On Tuesday, the S&P 500 and
Nasdaq Composite posted their biggest one-day declines in a month in
anticipation of the impeachment inquiry. The Dow Jones Industrial
Average also dropped 142 points, or 0.5%.
Stocks have surged
since Trump was elected as the administration has implemented policies
such as tax cuts and decreased regulation. The Dow has surged more than
46% since Trump’s election. Stocks have previously struggled when a
president faces the possibility of impeachment.
The S&P 500
was down about 20% at one point from its high in 1998 as independent
counsel Kenneth Starr ramped up his investigation of President Bill
Clinton for perjury and obstruction of justice, according to CFRA. The
market bottomed as the House began impeachment proceedings and later
recovered all losses to reach a then-record high.
MONDAY – U.S. stocks were lower Monday, with the market perhaps worried about what is likely to be a tougher earnings season.
At around 8:35 a.m. ET, Dow Jones Industrial Average futures indicated a negative open of more than 100 points. Futures on the S&P 500 and Nasdaq 100 were both marginally lower.
Market focus is largely attuned to corporate results, with major U.S. banks set to get the ball rolling later in the week.
Analysts have warned that the upcoming earnings season could be the first quarter of contracting corporate results since 2016.
J.P. Morgan Chase and Wells Fargo are both set to report their latest figures on Friday.
Before that, minutes from the Federal Reserve’s last meeting are due to be released on Wednesday.
Following the Fed’s most recent meeting in March, the central bank decided to maintain interest rates and hold off on any further increases this year.
On the data front, factory orders for February will be published at around 10 a.m. ET.
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SUNDAY – Stocks posted their second weekly rise on Friday as stocks were boosted by better-than-expected jobs data and progress on the U.S.-China trade front.
The S&P 500 and Dow Jones Industrial Average both rose about 2% this week, while the Nasdaq Composite jumped 2.7%. On Friday, the S&P 500 and Nasdaq closed up by 0.5% and 0.6%, respectively.
Materials and financials were the best-performing sectors this week, rising 4.3% and 3.3%, respectively. Bank shares led the gains in financials. Morgan Stanley rose more than 6% this week, while Goldman Sachs, Bank of America and Citigroup all ended the week up more than 5%.
The U.S. economy added 196,000 jobs in March, according to data released on Friday by the Bureau of Labor Statistics. Economists polled by Dow Jones expected 175,000. The U.S. unemployment rate, meanwhile, remained at 3.8%. However, wage growth expanded 3.2% just below an expected gain of 3.4%.
Wall Street was looking forward to this report after the previous jobs data showed growth of just 20,000. That number was revised higher to 33,000 on Friday.
Friday’s strong jobs report comes after the release of disappointing economic data earlier in the week. Activity in the U.S. services sector fell to its lowest level since August 2017 while payrolls data released on Wednesday was also below expectations.
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