Stock Market Update Sunday, August 11th, 2019
The S&P finished the week with a 0.5% loss. But after last week’s wild ride, you might consider that a good thing!
Two weeks ago, stocks suffered their biggest weekly loss of the year. And on Monday, it looked like things were only going to get worse…stocks tanked and were trading at 2-month lows.
There was a small rebound on Tuesday, with the major indices bouncing back.
But on Wednesday things looked ugly again.
Stocks opened lower and dropped. But an impressive rebound helped erase the big morning losses and the major indices ended the day in positive territory.
Thursday was a big winning day as well. And all of a sudden the major indices were in positive territory for the week.
After 2 impressive winning days, stocks took a breather on Friday, finishing lower again. But you could almost consider it a win for the markets. After all, at one point the S&P was down 3.8% and the NASDAQ was down 4.3%!
Here’s what traders were focused on:
- Trade War Tensions – On Monday, stocks were hammered after China cancelled all purchases of U.S. agricultural products. The move was in retaliation to the 10% tariff increase that is planned to go into effect on September 1st. There was also an unprecented drop in the Chinese yuan vs. the U.S. dollar that President Trump labeled as “currency manipulation.” Then on Friday, Trump told reporters that the U.S. would not be doing business with Huawei and said that planned September trade talks could be canceled.
- Safe-haven Investments – Concerns over a prolonged trade war and weakening global economy helped lift safe haven investments. 10-year notes rallied, which in turn pushed the 10-year yield to the lowest levels since 2016. Gold (GC) was up 3.5% last week in a move that could be viewed as a “flight to safety.” Gold finished at $1508.7, above the $1500 mark for the first time since 2013.
Here’s where the major indices ended the week:
- The S&P finished with a 0.5% loss. Down 13 points, the S&P ended at 2,919.
- The DOW ended lower by 0.8%. Down 198 points, the DOW closed at 26,287.
- The NASDAQ was down 0.6%. With a 45 point loss, the NASDAQ finished at 7,959.
Crude Oil (CL) finished lower for the 2nd week in a row and was down more than 9.0% at one point. With a 2.1% loss, CL ended the week at $54.44 a barrel.
Uber (UBER) reported disappointing 2nd quarter earnings that saw losses of more than $5 billion. The stock was down as much as 12% in after-hours trading but finished Friday lower by 6.8%.
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.