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US Market Wrap 31 August 2018

Posted by Billy Macris on 31-Aug-2018 12:17:44

US equities turned south on Thursday as the market snapped a four day winning streak following comments from President Trump suggesting that he would support moving ahead with additional tariffs on Chinese imports as early as next week, adding to growing trade worries lingering in the markets. The imposed tariffs on $200 billion worth on Chinese imported goods would be the biggest so far and would mark a major escalation in the trade war between the world’s two largest economies. Given the rising tensions we saw the CBOE Volatility Index (VIX) reaching a two week high overnight closing the session at 13.53.

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Some of the movers included shares of Electronic Arts plunged more than 9.5 percent after the company delayed the release of Battlefield V, and adjusted its fiscal 2019 guidance for net bookings. In some earnings news, Dollar Tree Inc. (DLTR) shares fell -15.54% after the discount variety store missed second quarter earnings and revenue estimates. Shares of Abercrombie & Fitch Co (AFN) plunged 17.2 percent after the apparel retailer also missed quarterly same-store sales estimates.

Despite the doom and gloom in the broader market, Apple Inc (AAPL) shares closed at a record high, rising 0.9 percent following news that it would unveil its latest iPhones on Sept. 12. Amazon.com (AMZN) shares rose 0.2 percent, closing above $2,000 for the first time and edging the company closer to becoming the second U.S. Company after Apple to reach $1 trillion in market value.

In currency markets the dollar rose on trade concerns as risk appetite eased. Heavy losses were seen in emerging markets as the Mexican peso fell 0.7 percent while the South African rand dropped 1.3 percent. The stronger dollar sent the Turkish lira down sharply, the currency pair was last trading at 6.7731. The Argentine peso tumbled to a record 41.3618 low of as interest rates were hiked from 40 percent to 60 percent on Thursday. The iShares Emerging Markets ETF (EEM) dropped 2.6 percent.

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Chart of the Day: Dollar Tree Inc. (DLTR) Daily Chart

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Topics: +U.S. Market Wrap