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U.S Market Wrap 21 December 2018

Posted by James Nasioulas on 21-Dec-2018 11:57:02

The wild week in markets continued on Thursday as stocks sold-off as news of a government shutdown sent stocks tumbling to new lows and added to list of worries on Wall Street. We saw follow through selling from the previous session where the Fed hikes rates, as the Dow fell -1.99%, the S&P 500 declined -1.58 and the Nasdaq was lower by -1.63%.

Investors were alarmed to the potential of a government shutdown through President Trump’s twitter account, where in the past a vast amount of news and opinions have surfaced. The issue at hand saw Trump telling Republican leaders that he will not sign the proposed government funding bill due to its inability to provide enough funding for the border wall.

Ten of the eleven S&P 500 sectors finished in negative territory with the exception of the Utilities index that finished higher by 0.27%. Energy and Consumer Discretionary stocks led the losses as the sectors fell 2.79% and 2.25%, respectively. Of the Dow stocks all but Johnson & Johnson (JNJ) whose shares rose 0.5%, fell. Walgreens Boots Alliance (WBA) declined 5% on poor earnings, being the worst performer and United Technologies (UTX) declined 3.7%. 

Touching on earnings, we saw a series of poor results that also brought about more fear on The Street with declines in Accenture (ACN) down 4.94% and Carnival Corp (CCL) down 9.52%. In after-hours trading, Nike (NKE) shares bucked the trend rising 7.43% after reporting better than expected results beating on both earnings per shares and revenue estimates.

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In economic data, the Bank of England left interest unchanged at 0.75 percent amid lingering Brexit uncertainties and stated falling oil prices are likely to be a drag on inflation below its 2% target. The pound edged down after the decision and was up 0.2 percent at $1.2643. It’s not trading at $1.2665 against the U.S dollar. The Japanese yen broke below 112.00 touching a low of 110.81 after the Bank of Japan kept rates on hold yesterday, a weaker industry activity index and a weaker U.S dollar across the board.  Other currencies worth keeping an eye on amid the weaker U.S dollar include the EURUSD pushing higher and currently trading at $1.1452 and the USDCAD at $1.3501. See USDJPY daily chart below 

21.12.18 - usdjpy

 

Topics: +U.S. Market Wrap