US Market Wrap 5 October 2018

Posted by Billy Macris on 05-Oct-2018 14:05:31

US equities sold off on Thursday as treasury yields continued their climb to multi year highs sending all major indexes lower and dampening investor sentiment.  Yields rose making new multiyear highs as strong economic data continued to tempt investors into riskier assets. The yield on US-10 year treasury notes rose to 3.1870% hitting 3.2305% and on the US-2 year notes rose to 2.8680%. As a result the Dow Jones fell 0.75%, S&P 500 fell 0.82% and the Nasdaq fell 1.81%. Weighing on the Nasdaq and the tech sector were the FAANG stocks. Facebook shares fell 2.20 percent, Amazon stock fell 2.22 percent, Google parent company Alphabet fell 2.84 percent and Netflix fell 3.55 percent.

5.10.18 - FINVIZ

The Dow was weighed down by losses in Nike and Home Depot shares both falling 2.815 and 2.42%, respectively, falling as much as 356 points to the sessions lows before recovering slightly ending the session lower by approximately 200 points. We saw nine out of eleven S&P 500 sectors loose ground as the technology sector was the worst performer down 1.78% percent for the day. Some of the gainers overnight included the Financial and Utlities sectors higher by 0.71% and 0.55%, respectively as a higher interest rate environment and higher yields was the main theme overnight. As such J.P. Morgan Chase and Bank of America rose 0.9 percent and 1.4 percent, respectively. However, there were laggards in the markets than winners as the dividend paying stocks suffered as seen through Procter & Gamble sharers which closed 1.3 percent lower.

Tesla shares also turned around for the wrong reasons down 4.40% as CEO Elon Musk mocked the Securities Exchange Commission by labeling them the "Short seller Enrichment Commission". The chip makers were also in the headlines as Deutsche Bank reduced its 2019 earnings forecasts by an average of 5 percent on eight chip stocks. Shares tumbled after the news as Micron and Nvidia fell 2.6 percent and 2.2 percent, respectively. Advanced Micro Devices pulled back 2.3 percent. 

In economic data released, initial jobless claims fell to 207,000, a near 49-year low. Investors now look to focus on the September jobs report, which is scheduled to be released Friday morning.

5.10.18 - US1

5.10.18 - US2

5.10.18 - US3

Chart of the Day: Direxion Daily 20+ Yr Trsy Bear 3X ETF (TMV) Daily chart

5.10.18 - tmv

Topics: +U.S. Market Wrap