^GSPC - S&P 500
| Previous Close | 3,006.79 |
| Open | 3,008.42 |
| Volume | 3,239,391,426 |
| Day's Range | 2,984.68 - 3,016.37 |
| 52 Week Range | 2,346.58 - 3,027.98 |
| Avg. Volume | 3,558,363,906 |
- Yahoo Finance Video
Market Recap: Friday, September 20th
Yahoo Finance's The Final Round discuss the market action of the day.
Reuters VideosWhat to watch in the week ahead
Wall Street will be looking out for a potential stock market high next week. The S&P 500 is just half a percent away from setting new records. Analysts, however, wonder how long the market can stay in record territory. Though a recent spate of economic data have turned up - lack of progress on the bruising U.S.-China trade war is keeping a lid on an upswing in business and investor sentiment. The clock is already ticking down to a Federal Reserve meeting in October, and the possibility that it could bring the third rate cut of the year. With a major split among policymakers about what should happen next, investors will be listening for clues from no less than ten Fed officials this week. Heading to the mic will be St. Louis Fed President James Bullard, who has argued for aggressive rate cuts, and Kansas City President Esther George, who wants to keep rates where they are. The week also comes with an update on the U.S. economy with a final revision to second-quarter GDP. The big earnings story next week comes from Nike. Investors will be scouring for clues on how America's numerous trade disputes are impacting the world's largest athletic gear maker. And there's also a quarterly update from Carnival. The main focus there: how much has the cruise ship operator been impacted by this year's Atlantic storm season, including the battering Hurricane Dorian delivered to the Bahamas - a Carnival island stop.
- MarketWatch
Stock market’s eerie parallels to September 2007 should raise recession fears
Since last year real GDP growth in the U.S. has been slowing. The chair of the Federal Reserve has been signaling that while growth is slowing, there is no recession risk and the Fed is forecasting continued positive growth.
- Market Realist
Goldman Sachs: Expect Volatile October, Rising Gold
Yesterday, Goldman Sachs' strategist warned of high volatility in October. Based on Goldman Sachs' data, since 1928 volatility in October is 25% higher.
- MarketWatch
How to profit from the ‘best of both worlds’ in stock investing
DEEP DIVE After a 10-year rally for large-cap stocks, a way to diversify your investments and reduce short-term risk is to increase exposure to mid-cap shares. We recently discussed the long-term outperformance ...
- MarketWatch
Fed’s struggles with funding in banking system highlights fragility of Wall Street confidence
Chaos hit the overnight borrowing market this week, underscoring cracks in a key funding market for Wall Street that could ripple through the real economy without a more permanent patch.
- MarketWatch
A stock-market selloff could spark an economic recession, says BNY Mellon’s Liz Young
Investor confidence is playing an abnormally important role in U.S. equity markets, and potentially the entire U.S. economy, BNY Mellon’s Liz Young tells MarketWatch.
- MarketWatch
In 10 years, your best bet is still the S&P 500, says Bernstein
Our call of the day from Bernstein Research that says 10 years from now, you’ll still be better off in equities, whether it hits 4,000 or 8,000.
- MarketWatch
How the stock market tends to perform after back-to-back Fed rate cuts
On Thursday, U.S. equity benchmarks were staging a test of fresh all-time highs, a day after the Federal Reserve cut interest rates for the second time in as many meetings.
- Barrons.com
Lululemon Founder Chip Wilson Sells Millions of Dollars of Stock
Wilson has sold $800 million in shares of the athleisure retailer this year. Lululemon stock has tripled the S&P 500’s gain this year.
- MarketWatch
We are in an earnings recession, and it is expected to get worse
The S&P 500 is officially in an earnings recession for the first time in three years, and the trend is expected to get worse in the third quarter.
- Bloomberg
Paranoia Written All Over S&P 500 in Struggle Back to a Record
(Bloomberg) -- The relentless drive into defensive stocks is a logical way to cope for investors beset all year by signs a recession is at hand. It’s also a tough way to set a fresh stock record.Buoyed by a supportive Federal Reserve and strong economic data, the S&P 500 climbed within points of an all-time high Thursday only to falter as investors snubbed the growth stocks that underpinned the record bull run. They clung to industries inured to economic cycles or that go up in lockstep with bonds, making real-estate and utility stocks -- among the puniest of S&P 500 groups -- the sole bearers of the rebound from August’s rout. Just about everything else is in the red.After suffering through three different 2% plunges, the sight of an inverting yield curve and Donald Trump’s trade tweets, confidence that technology and consumer shares are set to rebound remains in short supply ahead of a batch of earnings set to show shrinking corporate profits.“People are nervous,” Peter Jankovskis, co-chief investment officer at Oakbrook Investments, said by phone. “They see signs of optimism but they’re also wary that these things have broken down several times already. They’re putting their feet back in the water with names they suspect will hold up if these hopes aren’t realized.”Even if stocks reclaimed their July highs, new records have been something less than an all-clear signal in the U.S. stock market for almost two years. Since January 2018, the average overshoot has been 1.75% before things fell apart again. Repeating that would lift the S&P 500 to 3,088. It closed the week at 3,009, about 15 points shy of a record.That’s not to say there’s no reason for bulls to remain upbeat. Economic data has started to improve. Stocks reversed losses Wednesday after Jerome Powell said the economy needed only moderate easing but that the Federal Reserve was “prepared to be aggressive” should growth falter.A recent rotation into value gave beaten-down stocks a lifeline. That’s helped the health of the market, with the aggregate advance-decline line for stocks listed on the New York Stock Exchange climbing to a record this month. Small caps, long laggards, have also rallied, with the Russell 2000 gaining about 4% this month.“The market is still persevering,” said Kim Forrest, chief investment officer at Bokeh Capital Management in Pittsburgh. “Prices are holding in there more or less and that’s a good sign. And I think the reason behind that is the relatively strong economy.”Still, it’s no wonder caution prevails amid the latest elevation. Hedge funds have resisted embracing the rally, raising bearish bets on stocks while keeping net exposure below average. At above 3,000, the S&P 500 would exceed the average year-end target of 2,952 from Wall Street strategists.Consumer sentiment is also declining and, with it, worries over an oncoming recession have spiked. The list of people lining up to ring the recession bell has expanded in recent weeks: Ray Dalio and Jeffrey Gundlach see chances of the next downturn increasing. More than a third of respondents in a Bank of America survey say one is likely in the next year, the highest probability since 2011. A net 2% of those surveyed were overweight U.S. equities, according to the bank.“The financial markets are clearly indicating a slowdown, if not a potential recession,” Rich Weiss, chief investment officer of multi-asset strategies at American Century Investments in Mountain View, California, said by phone. “This can be viewed as what’s known as climbing the wall of worry, or can be viewed as the last gasp of the bull market. I think we’re somewhat in between.”Investors have been willing to pay up for peace of mind. Electricity and energy stocks now trade at more than 20 times earnings, the most expensive valuation on record. Earlier this month, utilities’ valuation premium over the S&P 500 touched the highest since 2007 and the S&P 500 utilities sector closed at a record this week.Since the start of August, exchange-traded funds that track real-estate and consumer staples have each taken in more than $1 billion, more than any other sector, according to data compiled by Bloomberg. Last month, financial-focused funds lost near $4 billion in cash, while investors also pulled more than $1 billion from energy ETFs.Demand has spiked for smart-beta products that aim to provide a smoother stock market ride. In aggregate, low-volatility ETFs took in more than $3 billion in August, the most since December’s equity meltdown. Already this month, investors have rushed into the group faster than any other.Investors spooked by the uncertainties have also piled into gold and silver, with the largest ETF tracking gold seeing inflows of more than $6 billion since May.To Chris Gaffney at TIAA, that’s an indication investors remain worried even amid a buoyant stock market. “Investors are still worried about what the future holds,” said the firm’s president of world markets by phone.\--With assistance from Lu Wang.To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.netTo contact the editor responsible for this story: Jeremy Herron at jherron8@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Barrons.com
What the Saudi Attacks Mean for Energy Investors
The initial spike in prices soon faded, but the supply disruption and what’s to come needs to be weighed with energy stocks.
- Barrons.com
The Dow Falls as Markets Try to Figure Out What Really Matters
In a week that featured a rate cut, a massive attack on Saudi oil, and turmoil in the repo market, a Montana junket was the ultimate determinant of whether the market finished the week up or down
- Barrons.com
Oil Stocks, Housing, Drug-Price Plans: A Sampling of Advisory Opinion
Stock analysts and newsletter writers discuss the investment prospects for the energy sector, Red rate cuts, P/E ratios, housing.
- MarketWatch
Home-builder NVR to join S&P 500 index
NVR Inc. will join the S&P 500 index this month, the second change to the index announced this week. S&P Dow Jones Indices announced the change Friday afternoon, saying that the home-builder will replace Jefferies Financial Group Inc. in the index as of Sept. 26. Jefferies is moving down to the S&P MidCap 400 index after spinning off Spectrum Brand Holdings Inc. . Earlier in the week, S&P Dow Jones Indices announced that CDW Corp. will also move into the S&P 500 this month, replacing Total System Services Inc., which has been acquired. NVR shares declined 1.2% in after-hours trading Friday.
- Barrons.com
The Dow Fell 160 Points Because an Interim Trump-China Trade Deal Isn’t Doable
All three major U.S. stock indexes closed Friday in the red, giving up earlier gains. President Donald Trump said there is no need for a trade deal with China before the 2020 election. Chinese officials canceled their visit to farms in Montana.
- MarketWatch
Trump says he doesn’t need China deal before election and unveils Iran central bank sanctions
President Donald Trump on Friday said he didn’t need a trade deal with China before the 2020 elections, as he rejected a partial agreement and said “we have to do it right.”
- Reuters
GLOBAL MARKETS-Stocks fall as China cancels U.S. farm visits, yields dip
An index of global stock markets surrendered early gains on Friday after Chinese agriculture officials who were to visit U.S. farm states next week canceled their trip, dampening optimism on U.S.-China trade talks. Renewed worries about the state of the ongoing trade tensions between Washington and Beijing drove Treasury yields lower and pushed the U.S. dollar down against the safe-haven Japanese yen.
- MarketWatch
Stocks end lower after trade concerns rattle markets
U.S. stocks closed lower Friday, for the first weekly decline in a month, as investors looked beyond a litany of central-bank decisions of the past week and focused on the state of China-U.S. trade talks.
- MarketWatch
Stocks close lower after China cuts short trade visit
U.S. stocks erased early morning gains to close lower Friday, after pessimism over U.S.-China trade relations rose following a decision by the Chinese trade delegation to cancel visits to farms in Montana and Nebraska, potentially signalling a lack of progress on trade negotiations. The Dow Jones Industrial Average fell about 161 points, or 0.6%, to close at 26,934, the S&P 500 index lost 15 points, or 0.5% to end around 2,992 and the Nasdaq Composite retreated roughly 65 points, or 0.8% to end the day at 8,118. The low-level negotiations this week were meant to set the stage for senior officials to hash out a broader deal sometime next month. Also weighing on sentiment were comments by President Donald Trump that he was not interested in a limited trade deal that would ratchet back some barriers in exchange for greater purchases of U.S. agricultural goods. Stock volumes for the S&P 500 were elevated as a result of a "quadruple witching day," as Friday marked the simultaneous quarterly expiration of stock-index futures contracts, single-stock futures, and options on stock-index futures and individual stocks.
- MarketWatch
Fed’s Clarida says U.S. economy is fine but global outlook is getting worse
Fed Vice Chairman Richard Clarida on Friday defended the central bank’s decision to cut interest rates by a quarter-point.
- MarketWatch
Fed’s Rosengren: Rate cut ‘risks further inflating the prices of risky assets and encouraging people to take on too much leverage’
Boston Fed President Eric Rosengren on Friday said he dissented because the rate cut could inflate asset prices further using more debt.
- Reuters
US STOCKS-Wall Street drops after China cancels trip to Montana farmland
Wall Street dropped on Friday, and also finished the week lower, after a Chinese agriculture delegation canceled a planned visit to Montana, dampening optimism about U.S.-China trade talks. The delegates, who had been set to visit U.S. farm states next week, will return to China sooner than originally scheduled, the Montana Farm Bureau said. Major stock indexes fell into negative territory after the cancellation, which came as trade talks were held in Washington and U.S. President Donald Trump said he wanted a complete trade deal, not just an agreement for China to buy more U.S. agricultural goods.
- Investor's Business Daily
Stock Market Falls Sharply On Renewed China Trade War Fears
The Dow Jones Industrial Average and other major indexes closed near session lows as China trade war fears again took center stage.
