Stock Market Update Thursday, May 23rd, 2019
With no end to the trade war in sight, stocks finished lower for the 2nd day in a row today.
Yesterday Barclays said that the stock market could drop 10% in “an all-out trade war” if tariffs are imposed on all imports from China.
With traders worried about trade, the 10-year note rallied to levels not seen since late 2017. And the 10-year yield is the lowest its been all year.
The push higher in notes can be viewed as a “flight to safety”, with more and more investors starting to worry about the impacts a long trade war would have on the economy (notes and bonds usually move higher when investors pull money out of stocks and invest in safer assets).
The major indices dropped overnight, then continued to slide in the morning.
There was a brief pause in the sell-off late morning. Then selling resumed and stocks drifted lower throughout the day.
With about 45 minutes to go in the session, stocks rallied. But the major indices still finished with losses of more than 1.0% across the board.
Here’s where the major indices ended the day:
- The S&P finished with a 1.2% loss. Down 34 points, the S&P ended at 2,822.
- The DOW ended lower by 1.1%. Dropping 286 points, the DOW closed at 25,490.
- The NASDAQ was down 1.6%. With a 123 point loss, the NASDAQ finished at 7,628.
Crude Oil (CL) was HAMMERED today. Down 5.6%, CL ended at $57.83 a barrel, the lowest close in over 2 months.
Today’s Crude Oil slide sent energy stocks lower. Chevron (CVX) lost 2.2% and Exxon Mobil (XOM) dropped 2.3%.
Best Buy (BBY) suffered a 4.8% loss, even though they reported solid earnings. On the flip side, L Brands (LB) rallied 12.8% after better than expected earnings. The move came in spite of lowered Q2 guidance.
It’s shaping up to be a pretty lousy May for the stock market.
The S&P is down 4.2% this month, the DOW has lost 4.2%, and the NASDAQ leads the major indices with a 5.9% loss!
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.