US Market Wrap 19 October 2018

Posted by Billy Macris on 19-Oct-2018 10:30:35

US stocks fell on Thursday as investors remained on edge in anticipation of a global market slump. The Dow fell more than 300 points continuing its struggling time in October with Consumer Discretionary and Technology stocks leading the losses. The Dow fell 1.27%, the S&P 500 fell 1.44% and the Nasdaq fell 2.06%. Thursday's declines has added to the market's losses for the month of October which continues to see Wall Street struggle as the Dow and S&P have fallen nearly 4%, whilst the Nasdaq is down nearly 7%, also known as the tech wreck. There was no chilling for Netflix shares as they fell 4.93%, Amazon shares fell 3.33% and Activision shares plummeted 8.29%

Adding to the trade related worries and rising interest rates, investors also digested the news of the possibility of a US and Saudi Arabian conflict as US Treasury Secretary Steven Mnuchin pulled out of a Saudi Arabia investment conference. As a result, investors saw an increase in volatility overnight, as the VIX Index rose to 20.06 up 15.29 percent following the increase in fear in the markets. Weakness in the Chinese market -2.94% flowed into Wall Street as stocks fell across the board. Stocks seen as economic bellwethers fell with the likes of United Rental and Textron shares fell 14.93 percent and 11.25 percent, respectively after reporting disappointing earnings.

Housing stocks also fell after Bank of America downgrade both Toll Brothers and PulteGroup following disappointing housing data. In reaction to the news, shares of Toll Brothers rose 0.35 percent, PulteGroup fell 1.67 percent and iShares U.S. Home Construction ETF ITB dropped 2 percent.

Among some of the gainers overnight, in extended hours trading, PayPal shares jumped more than 7 percent despite falling 3% during the trading session, following the release of its third-quarter earnings report. Sketchers shares also soared as much as 8 percent during after-hours trading Thursday as the company reported a strong earnings report with third-quarter profits and future guidance.

Chart of the day: United Rentals (URI) daily chart 

19.10.18 - utx

Topics: +U.S. Market Wrap