U.S equities finished in positive territory on Monday, starting the week off on progressive note as the major indexes rallied from the sessions lows due to continued uncertainty regarding Britain’s exit from the European Union clouded investors. Markets have been caught in the headwinds as a handful of global issues continue to dominate the headlines – U.S-China trade tensions, a slowdown in economic growth and interest rate expectations to name a few. Theresa May added to the list after delaying a parliamentary vote on the Brexit deal – the British Pound (GBPUSD) fell -1.60% against the U.S dollar to a low $1.2505 and is now currently trading higher at $1.2561. See GBPUSD chart below.
The Dow rose +0.14% after rallying approximately 475 points from the lows, the S&P 500 finished higher by +0.18% and the Nasdaq rose +0.74% as technology stocks were the leaders of the day. Dow futures 5 minute and daily chart below.
Among the gainers for the day, tech led the way as Facebook (FB) rose +3.22% and Microsoft (MSFT) traded +2.64% higher. Apple (AAPL) shares were in the headlines as reports surfaced that Qualcomm (QCOM) had won a Chinese court order banning the import and sale of several iPhone models in China due to patent violations. Apple shares rose +0.66% whilst Qualcomm shares were +2.23% better off. Elon Musk also raised eyebrows in an interview where he slammed the Securities and Exchange Commission saying he doesn’t respect them after being asked about the lawsuit brought against him earlier in the year. The news had little effect on Tesla (TSLA) shares as they rose +2.01%. Wells Fargo chart below breaking below $50.00.
Financials felt the effect of the Federal Reserve’s change in tone on interest rate and combined with a slowdown in economic growth the financial S&P 500 index fell -1.40%. Shares of Wells Fargo (WFC) fell -2.90% and Bank of America (BAC) fell -2.63%. The energy index was the worst performer falling -1.62% following a 2% drop in oil prices as Light Sweet crude fell to $50.89 a barrel after trading as high as $54 days earlier following the aftermath of the OPEC meeting in Vienna – Chevron (CVX) and Exxon Mobil (XOM) fell -0.18% and -1.42%, respectively.