|Day's Range||2,749.03 - 2,772.17|
|52 Week Range||2,532.69 - 2,940.91|
Yahoo Finance's Scott Gamm talks to a trader about what to expect for the week ahead.
Jonathan Golub, Credit Suisse chief U.S. equity strategist, and Brian Belski, BMO Capital Markets chief investment strategist, discuss the state of the markets and whether we've topped out.
Carl Icahn says tariffs are a 'dangerous game' and have brought about stock market crashes|| 105507312
Among the biggest drags on the three major indexes was Apple, which fell 1.9 percent after Goldman Sachs said there were multiple signs of rapidly slowing consumer demand in China, which could affect demand for iPhones this fall. The technology index fell 1.2 percent, the most among the 11 S&P sectors. As the earnings season shifts into high gear this week, Goldman's warning on weak China demand only adds to fears about the impact of tariffs on corporate profits, even as borrowing costs are rising.
Does it feel like sudden bursts of volatility happen more than they used to? It isn’t your imagination.
U.S. stock indexes are mostly lower Monday as technology companies continue to slump. The S&P 500 and other major U.S. indexes are coming off their worst week since late March as investors worry about rising interest rates and trade tensions between the U.S. and China. Bank of America dropped after it reported disappointing growth in loans.
Equity volatility has intensified while rates volatility is off its peak, pushing the ratio between the two to “extreme” levels near historic highs, according to Keith Parker, the head of head of equity strategy at UBS Securities. The Cboe Volatility Index and the Merrill Lynch Option Volatility Estimate Index are gauges of the expected swings in U.S. equities and bonds, respectively, over the next month.
The market was taking a bit of a breather on Monday—as of late morning, the S&P 500 had risen 0.1% to 2770.49, while the Dow Jones Industrial Average had gained 80.85 points, or 0.3%, to 25,420.84, and the Nasdaq Composite had declined 0.2% to 7480.89—and that gives us a chance to reflect for a moment.
Investors are digesting earnings reports and a disappointing retail sales report following a rout that saw stocks drop more than 4% last week.
I looked at the S&P 500 Index (SPX) late last Thursday, with some charts, indicators, and observations about how investors react to sharp declines in the averages. From time to time I find anecdotal stories at tops and bottoms to be very useful.
On October 5–12, US crude oil November futures fell 4% and closed at $71.34 per barrel on October 12. Bearish inventory data might have pulled oil prices in the last week.
Whirlpool Corp. said Monday morning that the Sears Holdings Corp. bankruptcy "will have a very limited impact" on the appliance maker's results. Whirlpool said that about $30 million, or 1%, of its aggregate accounts receivable exposure was with Sears as of Sept. 30. And Sears sales represents less than 2% of global net sales. The company does not anticipate any impact to full-year 2018 earnings per share. Whirlpool stock is up 2% in Monday trading, but down 37.2% for the year to date. The S&P 500 index is up 3.3% for 2018 so far.
Sears' controlling shareholder, Edward Lampert, stepped down as CEO but will remain chairman. Click here to register for a free online video in which TheStreet's retirement expert Robert Powell and an all-star panel run down all you need to know. Wall Street Overview Stocks traded mixed on Monday, Oct. 15, amid escalating tensions between the U.S. and Saudi Arabia over the death of a prominent Saudi journalist in Turkey last month as well as renewed concerns for trade disputes between the U.S. and its major economic partners.
Art Cashin says investors have "had enough" of last week's market action, which saw the biggest weekly declines for the Dow, S&P 500 and Nasdaq since March. The stock market is blindly trying to build gains after a devastating performance last week, closely followed trader Art Cashin said Monday. Cashin said investors have "had enough" of last week's "shocking" market action, which saw the biggest weekly declines for the Dow Jones Industrial Average , S&P 500 and Nasdaq since March.
The market has basically topped and won't deliver the eye-popping returns of recent years, hedge fund manager David Gerstenhaber says. "I'm not predicting a bear market at this point," says Gerstenhaber, one of Robertson's first so-called Tiger Cubs. The stock market has basically topped out and won't deliver the eye-popping returns that investors have become accustomed to in recent years, hedge fund manager David Gerstenhaber told CNBC on Monday.
Based on an analysis of the S&P 500’s performance after the VIX spiked 50 percent above the prior month’s moving average since 1990, which happened last week, the strategists found that equities were higher more than 90 percent of the time over the next six and 12 months, outside recessions. “In other words, one should be selling only if one has a base case of U.S. recession,” they wrote in a research note.
Among the biggest drag on the three major indexes was Apple, which fell 1.6 percent after Goldman Sachs said there were multiple signs of rapidly slowing consumer demand in China, which could affect demand for iPhones this fall. Apple's drop weighed on technology stocks, which fell 1.34 percent and much like last week, led the market lower. With the third-quarter earnings season entering high gear this week, Goldman's warning on weak demand from China would only add to fears about the impact of the U.S.-China trade war on corporate profits.
Evercore ISI upgrades shares of McDonald's to outperform from in line. Evercore ISI upgraded shares of McDonald's to outperform from in line on Monday, saying the company is well-positioned to ride out the trade war between the U.S. and China. "[McDonald's] is the most defensive restaurant stock, it has less exposure to emerging economies, and the stock will likely outperform should equity volatility related to trade persist," Evercore analyst Matt McGinley said in a note.
Goldman Sachs strategist David Kostin said there is "limited further downside" for stocks after the recent sell-off sent the Dow industrials down almost 6 percent. Strong fundamentals, including rising earnings and return on equity, should limit the damage, he said. Goldman continues to call for a 2,850 price target on the S&P 500, which would be about 3 percent higher from Friday's close.
The average earnings growth rate for the quarter so far is 19.1% (third highest growth rate since the first quarter of 2011). The forward 12-month P/E ratio for the S&P 500 is now 15.7x, compared to the five-year average of 16.3x.