|Day's Range||2,781.81 - 2,816.94|
|52 Week Range||2,532.69 - 2,940.91|
Here's Myles Udland with what will be making headlines tomorrow, October 18th.
BANGKOK (AP) — Shares turned higher in Europe on Thursday after declines in Asia and on Wall Street. A report of weaker Japanese exports in September underscored uncertainties over the outlook for trade.
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Global stocks weaken as investors re-price risk following a hawkish reading of the latest Fed minutes that suggests near-term rate hikes will continue as the domestic economy expands and inflation accelerates. China stocks fall to a four-year low in the face of a firmer dollar and rising bond yields, with little relief coming from a U.S. Treasury report that stopped short of labeling Beijing as a currency manipulator. U.S. equity futures point to a softer open on Wall Street with markets eyeing rising 10-year Treasury yields, which hit 3.21% overnight, and earnings from Dow components American Express and Travelers Companies and online payments systems group PayPal.
U.S. stock futures declined on Thursday, Oct. 18, after a hawkish set of minutes from last month's Federal Reserve meeting cemented the case for near-term interest rate hikes, pulling both the dollar and U.S. Treasury yields higher. Federal Reserve officials believe the best way to encourage a steady U.S. economy is to raise interest rates gradually, according to minutes of the central bank's Sept. 25-26 policy meeting that were released Wednesday. The Fed boosted rates for the third time this year last month to a range of 2.25% to 2.5%, and the minutes from the meeting suggested that Chairman Jerome Powell and his colleagues won't be swayed by criticism from Donald Trump, who has said the central bank was moving "too fast" to tighten policy and was threatening the health of the U.S. economy.
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The dollar rose to a one-week high on Thursday and stocks edged lower after signs that the Federal Reserve will keep raising interest rates through 2019 undermined a bounce in world markets. China's stock markets were hit hard - its benchmark stock index fell to four-year lows - in a gloomy session for Asian equities and for the yuan which approached a two-month low.
On the data front, U.S. jobless claims are expected at 8:30 a.m. ET, followed by a Philadelphia Fed Business Outlook Survey at 8:30 a.m. ET. On the earnings front, Travelers, Bank of NY Mellon and Blackstone are expected to report before the bell. Meanwhile, American Express and Paypal are expected to report after the bell.
The 10-year Treasury yield climbed as high as 3.21 percent after minutes showed Fed officials appeared to favor an eventual move in rates above the level they see as neutral for the economy. Fed minutes have left investors with little doubt that rates will keep rising, possibly beyond neutral, three weeks after central bankers signaled their intention to hike before year end. Meantime, in the latest trade salvo, President Donald Trump plans to withdraw the U.S. from a postal treaty that gives Chinese companies discounted shipping rates for small packages sent to American consumers.
Investing.com - Asian markets dipped in morning trade on Thursday after U.S. stocks ended lower after a volatile session. The Treasury Department said in its semi-annual currency report that China did not meet the criteria to be named a currency manipulator.
The S&P 500 pulled back initially during the Wednesday session, breaking below the 2800 level. That is technically an area of interest, but I think at this point we are simply awaiting the FOMC Meeting Minutes.
Stocks on Wall Street had a turbulent session overnight following the release of the Federal Reserve's September meeting minutes, which showed a commitment to tighter monetary policy to keep the economy steady. The U.S. Treasury Department refrained from labeling China as a currency manipulator in a report released on Wednesday, but adopted tougher language against the country. The Greater China markets were largely lower, as Hong Kong's Hang Seng index slipped by 0.47 percent in the afternoon.
Gold for October delivery closed down 0.3% at $1,223.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Wednesday’s move by stocks may have encouraged some investors to cut their holdings of gold, a popular destination for nervous market participants. Gold prices are up 2.7% so far this month.