US Market Wrap 10 October 2018

Posted by Billy Macris on 10-Oct-2018 11:00:34

US stocks fell broadly in choppy trading on Tuesday as investors continued to grapple with the effects of rising interest rates combined with global trade wars. Over the past couple of trading sessions lingering concerns regarding rising interest rate after the release of strong economic data last week combined with comments from Fed Chairman Jerome Powell said monetary policy was “a long way” from neutral, indicating more rate hikes are coming.

Bond yields rose hitting new highs which saw increasing selling enter the stock market, yet stocks got a breather as yields closer lower by the session after a three day climb higher. The benchmark US 10-year Treasury note yield rose to its highest level since 2011 at 3.261% before slipping to close at 3.206%, whilst the benchmark US 2-year Treasury note yield was unchanged at 2.889%.

The S&P 500 Materials and Industrials sectors were the worst performers for the day declining by 3.40 percent and 1.51 percent respectively led by a 10.6 percent decline in PPG Industries following lowering its third quarter guidance. The S&P 500 Energy sector biggest gainer rising 1 percent on the back of rising oil prices following reports of falling Iranian crude exports and and a partial Gulf of Mexico production shutdown due to Hurricane Michael. Brent crude rose $1.09 to settle at $85.00 a barrel, a 1.30 percent gain and Light Sweet crude rose 67 cents to settle at $74.96 a barrel, a 0.90 percent gain.

The Nasdaq rose slightly to snap a three day losing streak as major tech giants rose with the likes of Facebook higher by 0.4 percent, Amazon rose 0.3 percent, Netflix gained 1.9 percent and Apple shares rising 1.4 percent. Among stocks releases earnings, American Airlines shares declined with a 6.5 percent drop after citing higher fuel prices would flow into the the quarter and rising fares wouldn't be enough to offset the increase. 

10.10.18 - US1

10.10.18 - US2

10.10.18 - US3

Chart of the Day: American Airlines Group (AAL) Daily Chart 

10.10.18 - AAL

Topics: +U.S. Market Wrap