Stock Market Update Sunday, May 26th, 2019
Without any real developments in the ongoing trade war, stocks struggled to find direction last week.
And it was a tough week from the start.
On Monday, stocks opened lower and finished the day with losses.
There was a bit of a comeback on Tuesday. The major indices bounced back and were in positive territory for the week.
But losses on Wednesday and Thursday had stocks flirting with last week’s lows.
There was a small win on Friday, but it just put a small dent in the week’s loss.
The major indices finished the week lower and the DOW closed lower for the 5th week in a row, its longest weekly slide since 2011!
But it was the NASDAQ that was hardest hit. The tech index lost 2.3% last week, finishing lower for 3 weeks straight.
Here’s what traders were focused on:
- Tech Stocks – The technology sector was hardest hit last week. Tech stocks dropped because traders are concerned about U.S. tech exposure in China. There’s the issue of Huawei, and the Trump administration making it harder for U.S. companies to do business with the Chinese semiconductor company. But there are also concerns about U.S. tech losses in an ongoing trade war. Qualcomm (QCOM) lost 18.8% last week, Avago (AVGO) dropped 11.7% and even Apple (AAPL) was down 5.3% at week’s end.
- Energy Stocks – Crude oil was hammered last week. And the drop in oil hurt energy stocks. Exxon Mobil (XOM) lost 2.4% last week and Chevron (CVX) dropped 1.5%.
- Interest Rates – With traders worried about a long-lasting trade war, a “flight to safety” pushed 10-year Notes to their highest levels since late 2017 (notes and bonds usually move higher when investors pull money out of stocks and invest in safer assets).
Here’s where the major indices ended the week:
- The S&P finished with a 1.2% loss. Down 33 points, the S&P ended at 2,826.
- The DOW ended lower by 0.7%. Dropping 178 points, the DOW closed at 25,586.
- The NASDAQ was down 2.3%. With a 179 point loss, the NASDAQ finished at 7,637.
Crude Oil (CL) suffered its worst weekly loss since 2018. Down 6.7%, CL ended at $57.83 a barrel, the lowest close in over 2 months.
Tesla (TSLA) suffered a 9.7% loss this week after a Morgan Stanley analyst cut the stocks “worst case scenario” price to $10 a share. The stock is down 42% this year
President Trump is calling out the Fed again…in a speech in Japan on Saturday, the President said that the stock market would be 10,000 points higher if it weren’t for the Fed.
U.S. Markets are closed tomorrow for Memorial Day. Enjoy the 3-day weekend!
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.