|Day's Range||2,804.69 - 2,846.16|
|52 Week Range||2,346.58 - 2,940.91|
Equities extended declines after new reports showed that the manufacturing industries in the U.S. and Germany manufacturing industry slid last month, fueling concerns of a global slowdown.
The market could be poised for further gains, even with risks mounting, JPMorgan said on Thursday.
With the U.S. Federal Reserve well and truly doubling down on its dovish guidance this month, the global rate hiking cycle is at an end. There are exceptions of course but the big central banks of the developed world -- the Fed, the European Central Bank and Bank of Japan -- have all reacted decisively to the steady drumbeat of depressing economic data by pushing any policy tightening plans to the backburner.
The Dow Jones Industrial Average fell sharply Friday as weaker-than-expected manufacturing data in the U.S. and Europe renewed fears of slowing global growth. tumbled 5.3% after the sports apparel company posted weaker-than-expected third quarter sales in its key North American market. shares rose 3.6% despite the luxury jewelry retailer missing Wall Street's fourth-quarter sales expectations.
Stocks are in retreat Friday, as a key measure of the U.S. yield curve inverted and a downbeat round of European data underlined worries about global growth prospects.
The spread between three-month Treasury bills and 10-year note yields inverted for the first time since 2007 on Friday and stocks around the world fell after soft U.S. and European data fuelled fears of a global economic slowdown following this week's dovish turn by the U.S. Federal Reserve. The inverted yield curve is widely understood to be a leading indicator of recession. This was after German 10-year bond yields dived below zero for the first time since October 2016 after German data showed manufacturing contracted in March for a third straight month in Europe's biggest economy.
The S&P 500 Index declined Friday, with financials leading the benchmark lower as the yield on 10-year Treasuries, already at a more-than-one-year low, extended its decline. CurrenciesThe Bloomberg Dollar Spot Index rose 0.3 percent.The euro decreased 0.8 percent to $1.1285, the largest dip in more than two weeks.The British pound rose 0.7 percent to $1.3194.The Japanese yen rose 0.8 percent to 109.96 per dollar.
Stocks rose about 15 percent on average in the 18 months following inversions, according to Credit Suisse. The yield on the 3-month Treasury bill and the 10-year note went into negative territory briefly Friday morning, the first time since 2007. The more widely-watched part of the curve — the gap between yields on the 2-year and 10-year debt — has fallen to just 10 basis points, versus 60 basis points a year ago.
U.S. manufacturing sector Flash Purchasing Managers' Index (PMI) came in at 52.5 in March, well below the estimates of 53.6, according to economists polled by Reuters. "Today's economic numbers indicate the strong relationship that China has with Europe. The Federal Reserve on Wednesday abandoned projections for any interest rate hikes this year, as policymakers see a U.S. economy that is rapidly losing momentum.
All of the major equity indices closed higher Thursday with positive internals on both exchanges. Of note on the charts, the DJIA closed marginally above its near-term resistance while the Nasdaq 100 (see above) did so with gusto. Also, the Dow Jones Transports closed back above its 50-day moving average.
Wall Street's main indexes extended losses on Friday after the United States joined the euro zone in reporting weak manufacturing activity last month, fueling fears of a slowing global economy. U.S. manufacturing sector Flash Purchasing Managers' Index (PMI) came in at 52.5 in March, well below the estimates of 53.6, according to economists polled by Reuters. "Today's economic numbers indicate the strong relationship that China has with Europe.
The difference between 10-year and 3-month Treasury yields, a reliable recession indicator, turned negative for the first time since 2006.
The stock market was squarely lower with the Dow Jones industrials falling more than 100 points. Boeing and Nike stocks were weak in morning trade.
Avon Products Inc. shares climbed 6% in early trade Friday, after the Wall Street Journal said the company has discussed a sale to Brazilian rival Natura & Co., citing a person familiar with the matter. The talks include the possibility that Natura would acquire Avon's North American business, which is a separate company, in addition to the listed company which operates around the world. Avon sold its North America business to private-equity firm Cerberus Capital Management LP in 2016. Avon shares have gained 91% in 2019 so far, while the S&P 500 has gained 13%.