|Day's Range||2,583.23 - 2,638.15|
|52 Week Range||2,532.69 - 2,940.91|
Stocks fell dramatically Monday morning only to claw their way back. Yahoo Finance's Adam Shapiro, Seana Smith and Andy Serwer talk to Jimmy Lee, CEO of Wealth Consulting Group.
Chief equity strategist Michael Wilson adds that he wasn't surprised to see Wall Street's major indexes swoon in response to the shift in rates last week. Wilson warned of dismal results in equities throughout 2018 and said the market could be paralyzed in a "rolling bear market" for the next several years. Inversion of the so-called yield curve is yet another reason to fear an earnings, or even an economic, recession in 2019, according to Morgan Stanley.
U.S. stocks traded mostly lower Monday, but well off session lows, as investors looked past evidence of a still-strong U.S. economy to fret over proliferating signs of a global economic slowdown and the effects of a U.S.-China trade dispute. The Nasdaq Composite bucked the trend to advance thanks to a strong performance by shares of semiconductor companies. The Nasdaq Composite Index (COMP) rose 31 points, or 0.5%, to 7,000.
Miners and energy producers led the retreat in the Stoxx Europe 600 Index, while futures on the Dow Jones, Nasdaq and S&P 500 indexes were all in the red as Asian shares dropped across the board. Dampening the mood at the start of the week was weak data on China’s slowing economy and news the country’s vice foreign minister has summoned the U.S. ambassador Terry Branstad to protest the arrest of Huawei Technologies Co.’s chief financial officer. Sentiment in financial markets has been fragile in recent weeks as traders gauge whether the Fed could slow its tightening path as trade war fears linger.
Stocks that have underperformed in 2018 will lead the market in 2019, Goldman Sachs strategist David Kostin said. Goldman expects 2019 to offer muted returns, with the S&P finishing about 5 percent ahead of where the firm sees 2018 closing. Stocks that have gotten clobbered during the volatile 2018 cycle are the ones most likely to lead the market next year, according to Goldman Sachs.
The S&P 500 is not yet in a bear market, but nearly half of its components are. Hurt by worries about global growth, the S&P 500 (.SPX) on Monday fell 0.25 percent, putting the benchmark index on track for its lowest close since May and stirring fears that a decade-old Wall Street rally may be over. The S&P 500 index has been in a correction since October, defined by many investors as a drop of 10 percent or more from a high.
The bounce came as Apple's shares sharply cut their losses, which also helped the Nasdaq reverse course and post slight gains. Markets have been dogged by signs of cooling global growth, concerns over interest rates and worries that escalating tensions between the United States and China could scuttle a fragile trade truce.
Wall Street fell for a fourth straight day on Monday, sending the S&P 500 to an eight-month low, with banks, energy and health stocks leading losses on mounting worries over global growth, the U.S.-China trade war and uncertainty over Brexit. The bounce came as Apple's shares sharply cut their losses, which also helped the Nasdaq reverse course and post slight gains.
Shares of Allscripts Healthcare Solutions Inc. rose 4.1% Monday, after the company said it is selling its Netsmart Technologies Inc. business for about $525 million. The healthcare IT company placed its homecare business in Netsmart in March of 2016 in exchange for the largest ownership stake in the company, which specializes in behavioral health, human services and post-acute care. The company expects the deal to close by the end of the fourth quarter. It will use the proceeds to pay down debt, invest in growth areas and buy back stock. Leerink analyst David Larsen said he viewed the sale as a "mixed outcome" for shareholders. "We are encouraged that the sale proceeds of ~$525M will allow the company to reduce its leverage and provide the potential for more share repurchases, but we question why management would sell the company if it has generated such good growth and value over the past few years," Larsen wrote in a note. "With weak 3Q18 bookings blamed in part by Netsmart sales distractions, we believe there will be even greater focus on 4Q18 bookings which may disappoint and lead to further stock pressure." Allscripts shares have fallen 32% in 2018, while the S&P 500 has fallen 1.9%.
U.S. markets are back on their heels to start the week, as two of the three major market indices follow up Friday's selling with another greater than 1% drop Monday. The selling puts the S&P 500 back in negative territory for 2018. If the calendar year ended today, the S&P would be down 1.2% on a total returns basis, a small drop in nominal terms that's pretty significant in relative terms.
Investing.com - The market selloff continued in midday trading on Monday as the Dow dropped almost 500 points amid concerns over global growth and trade tensions between the U.S. and China.The S&P 500 lost 47 points, or 1.8%, as of 11:24 AM ET (16:24 GMT), while the Dow decreased 482 points, or 2%, and the tech-heavy Nasdaq Composite fell 87 points, or 1.2%.Ongoing trade tensions increased after Chinese officials summoned the U.S. ambassador to Beijing on Sunday to protest the arrest of the chief financial officer of Chinese electronics giant Huawei, Meng Wanzhou, in Canada. ...
Stocks extend their decline, falling off what one chart watcher termed the “cliff’s edge” for the S&P 500 above 2,600 on Monday.
News that a Chinese court has ordered Apple Inc. to stop selling some iPhones after finding it infringed on patents held by Qualcomm Inc. is "another gut punch" for the company that adds to all the noise recently coming from China, according to Wedbush. Analyst Daniel Ives said the news is concerning, although he is expecting it to affect just 10% to 15% of sales in the region. "In a nutshell, with China being a linchpin of growth for Apple around iPhone sales any further dent in the armor at this juncture is not what Apple or investors wanted to see given the headwinds around sales of its latest XR model," Ives wrote in a note. "It continues to feel like every day the sun will come out and there will be another bad data point for Apple as since the company reported its quarter in early November it's been a string of bad news around iPhone demand, transparency in the food chain, supplier cuts, China tariff worries with the stock down significantly and losing its gains for the year." Still, Ives said he expects today's news to offer more noise than something that will have a real impact. He reiterated his outperform rating on the stock, which was down 0.1% in afternoon trade, while the Dow Jones Industrial Average was down 0.8% and the S&P 500 was down 0.7%.