|Day's Range||25,236.05 - 25,561.34|
|52 Week Range||23,242.75 - 26,951.81|
The housing market has been stalling out this year and the stock market is starting to sense that all is not well with a major driver of the U.S. economy.
Earnings, global economic concerns, trade worries and the Fed’s interest rate decisions are weighing on the markets. Yahoo Finance’s Alexis Christoforous speaks with Tom Essaye of The Sevens Report.
U.S. stocks were mostly lower on Monday, Oct. 22, and cannabis plays weren't immune with some of the biggest names dropping double digits. The S&P 500 was declining for the 11th time in 13 sessions while the Dow Jones Industrial Average also was in negative territory.
The markets, however, quickly turned lower, with analysts saying that neither China hope nor Italy relief was enough for Wall Street gains to sustain. "Futures rallied with China, which obviously has been down close to 30 percent this year, and there was news of government policy intervention that really wasn't for U.S. markets to be up," said Mike O'Rourke, chief market strategist in JonesTrading in Greenwich, Connecticut. Gains in the high-growth stocks capped losses in the S&P and the Dow.
The Dow Jones Industrial Average traded lower Monday after closing last week with a gain of 0.4%. The S&P 500 and also fell into negative territory. The S&P 500 has closed lower in 10 of the past 12 sessions.
U.S. stocks were slightly lower in choppy trade on Monday while the dollar strengthened and the U.S. yield curve flattened after European equities reversed earlier gains to close lower. U.S. futures had pointed to gains, but the major indexes turned negative soon after Wall Street opened and then oscillated throughout the morning. Asian stocks rose after China promised to stabilize its economy and offset the impact of U.S. tariffs.
On October 20, Saudi Arabia admitted that US resident Jamal Khashoggi died during his visit to the Saudi consulate in Istanbul on October 2. The tension between the Western world and Riyadh might escalate. Previously, Saudi Arabia denied its involvement in the journalist’s disappearance.
Stocks drift lower, giving up early gains attributed to a continued recovery in China’s markets. Investors are gearing up for a heavy week of earnings.
Major U.S. stock indexes were mostly lower in midday trading Monday as losses in banks and health care companies outweighed gains elsewhere. Energy companies also fell along with the price of crude oil. Technology companies rebounded after an early tumble. Smaller companies were doing better than the rest of the market. Toy makers slumped after Hasbro's latest quarterly results disappointed investors.
Mirati Therapeutics Inc. shares dropped 19.5% in extremely heavy Monday morning trade after the company presented results from a phase 2 trial in which its cancer drug sitravatinib was combined with Bristol-Myers Squibb Co.'s cancer drug Opdivo . The trial enrolled patients with non-small cell lung cancer who had their cancer progress while taking a type of cancer drug called an immune checkpoint inhibitor. As of late August, of 56 patients in the trial who could be evaluated, 9 had a confirmed partial or complete response, the company said. Two additional patients had unconfirmed partial or complete responses -- which are awaiting confirmation -- and five others had unconfirmed responses "that will not be confirmed," Mirati said. The company said that in total, 16 patients had partial or complete responses, including the latter two categories of patients in its count. The company also said that 18 patients had tumor reductions of more than 30%, and an early estimate of median duration response was more than nine months. Mirati plans a phase 3 randomized clinical trial comparing a combination of the two cancer drugs with the chemotherapy docetaxel. Bristol-Myers' Opdivo is a checkpoint inhibitor that has already been approved in non-small cell lung cancer. As part of a major trend over the last several years, drugmakers have been testing immuno-oncology drugs like sitravatinib in combination with other cancer drugs, hoping that they might be more effective together. Mirati shares have dropped 41.5% over the last three months to $32.21, compared with a 1.6% slump in the S&P 500 and a 1.1% rise in the Dow Jones Industrial Average .
Bristol-Myers Squibb Co. shares dropped nearly 6% in extremely heavy Monday morning trade after the company said that, because of new information from a cancer clinical trial, the U.S. Food and Drug Administration is extending the review period for the company's new drug application by three months. This "major amendment to filing overshadows data presentations at [European Society for Medical Oncology]," a recent and major cancer conference, SunTrust Robinson Humphrey analyst John Boris, who rates the company "buy" with a $67 price target, said. The FDA now aims for an approval decision on the drug by or on May 20, 2019. The trial, called CheckMate-227, is an ongoing phase 3 study testing Bristol-Myers' drug Opdivo plus a low dose of another Bristol-Myers drug, Yervoy, against chemotherapy in metastatic first-line non-small cell lung cancer. The new information that Bristol-Myers submitted to the FDA pertains to overall survival for patients whose tumors have a relatively low level of mutations, or a "tumor mutational burden" (TMB) of less than 10 mutations/megabase. TMB is thought to have promise in cancer treatment, as a way of matching patients with the best therapies for their disease, but the way Bristol-Myers has approached the topic has been controversial, because the drugmaker made changes to its clinical trial to measure TMB while the research was already ongoing. Rival Merck & Co. , meanwhile, is seen as leading the space. The FDA considered the new TMB analysis a "major amendment" to the company's drug application, which is why the review period was extended. Bristol-Myers shares have dropped 9.7% over the last three months, compared with a 1.6% decline in the S&P 500 and a 1.1% rise in the Dow Jones Industrial Average .
The anniversary of Black Monday’s crash reminds us to be prepared for a precipitous decline in the stock market.
The hamburger chain has relatively high comparable-store sales growth, and three-quarters of analysts rate the stock a ‘buy.’
Shares of Intel Corp. rose 0.6% in morning trade Monday, after the semiconductor maker was upgraded at Instinet, which cited an upbeat outlook for its 10 nanometer chipsets. Analyst Romit Shah raised his rating to buy, after being at neutral the past four months. "There isn't a company in our semiconductor coverage universe that we see raising estimates in October or November. Intel is likely the only exception," Shaw wrote in a note to clients. Intel is scheduled to report third-quarter results on Oct. 25. Shah expects Intel to remain "supply constrained" until the ramp of 10nm, which sets it up for seasonal revenue growth and stronger gross margins. Said said every U.S. and foreign-based equipment supplier spoken with said they have seen 10nm volumes become more meaningful. "This should help alleviate fears about process technology leadership and share loss and drive Intel's multiple higher," Shah wrote. The stock has tumbled 15% over the past three months, while the PHLX Semiconductor Index has lost 9.7% and the Dow Jones Industrial Average has edged up 1.2%.
Corporate earnings over the past two weeks gave investors an injection of much-needed good cheer, with most of the roughly 20% of S&P 500 companies to report thus far bearing expectations. Yet these positive numbers may mask some troubling signs, analysts say.
U.S. stocks opened higher Monday, buoyed as global equities took a cue from a continued rebound by Chinese shares from multi-year lows. The S&P 500 was up 0.3% at 2,775, while the Dow Jones Industrial Average advanced 40 points, or 0.1%, to 25,485. The Nasdaq Composite was up 0.6% to 7,492. Chinese stocks surged for a second day Monday following another round of reassuring comments from leaders and top regulators, sending the Shanghai Composite up 4.6% and the smaller Shenzhen Composite up 5.2%. U.S. investors are also set for a deluge of earnings reports as third-quarter earnings season hits its stride this week.
A counted few market analysts expect a spooky October as solid earnings, revenues and management outlook will help the stock market gain traction in the near term.
In the previous article, we noted that several miners, including BHP Billiton (BHP), Vale (VALE), and Rio Tinto (RIO), have announced share buybacks. While stock prices get all the attention, for mining companies with a significant amount of debt, we should also look at EV (enterprise value). Freeport has an EV of ~$28 billion.
Wharton School finance professor Jeremy Siegel urges investors to be cautious, saying a number of challenges will keep stock prices muted for 2019. Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019.