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US Market Wrap 16 October 2018

Posted by Billy Macris on 16-Oct-2018 10:39:29

Stocks fell on Monday led by losses in technology shares as investors turned defensive and continued to fret over trade tensions, higher interest rates and geopolitical events. All three major indexes fell into negative territory as the close as the Dow -0.35%, the S&P 500 -0.88% and the Nasdaq -0.59%.

The tech index was weighed down by losses in Apple -2.14% as Goldman Sachs reported that the phone maker’s earnings may fall short this year and Netflix -1.89% after Goldman Sachs slashed its price target. Yet despite the bigger names dragging the indexes down, stocks that experienced the larger losses were Adobe fell 4.36 and Occidental Petroleum fell 6.13%. Chipmakers, The VanEck Vectors Semiconductor ETF SMH also fell 1.1% led by a 4.52% decline in Nvidia.

On the earnings front, Bank of America reported better than expected earnings and revenue, however the stock fell 1.9%. Tomorrow we have Netflix, Goldman Sachs, Johnson & Johnson, Morgan Stanley and IBM to name a few.

In after-hours trading, Adobe shares are making the biggest moves rising 6% after announcing its growth strategy where it estimates 2019 revenue to grow by 25%. Shares of cloud computing company Twilio fell about 4% after announcing that it will acquire SendGrid in a $2 billion all-stock transaction.

Important Notice

  • Reserve Bank of Australia Monetary Policy meeting Minutes at 11:30am (AEDT)

Chart of the Day; Adobe inc (ADBE) Daily chart

16.10.18 0- adbe

Topics: +U.S. Market Wrap