Last week was rough! – Here’s to expect this week…

Stock Market Update Sunday, August 18th, 2019


Last week was tough. But it could have been MUCH worse!

On Monday stocks dropped.

Then on Tuesday, the major indices bounced right back, erasing Monday’s gains.

On Wednesday, things looked UGLY! Stocks were hammered and the major indices finished with the worst day of 2019!

On Thursday, the major indices found support and finished slightly higher.

Then on Friday, stocks opened higher and rallied.

The major indices were up 1.0%+ on Friday. But it wasn’t enough to erase Wednesday’s slide, and the major indices finished lower for the 3rd week in a row.

Here’s what traders were focused on:

  • The Trade War – Two weeks ago the U.S.-China Trade War was in full swing. China stopping purchasing U.S. ag products and the U.S. labeled china currency manipulator. But last week things looked a little better. On Thursday, President Trump said that the September meeting with China is still on and more importantly, “we’re talking by phone, and we’re having very productive talks.”
  • The Inverted Yield Curve – Wednesday’s slide had a lot to do with 10-Year Yields briefly dropping below 2-Year Yields for the first time since 2007. This is a rare occurrence that usually happens before a recession.

Here’s where the major indices ended the week:

  • The S&P finished with a 1.0% loss. Down 30 points, the S&P ended at 2,889.
  • The DOW ended lower by 1.5%. Down 401 points, the DOW closed at 25,886.
  • The NASDAQ was down 0.8%. With a 63 point loss, the NASDAQ finished at 7,896.

Crude Oil (CL) snapped a 2-week losing streak. With a 0.7% gain, CL ended at $54.75 a barrel.

With recession concerns lingering, Gold (GC) finished higher for the 3rd week in a row. The 1523.8 close is the highest close for Gold since May of 2013.

NVIDIA (NVDA) jumped 7.3% on Friday after better than expected earnings.

And Deere (DE) was also higher. The stock rallied 3.8% even though it reported results that were worse than expected.

General Electric (GE) was hammered on Thursday after a whisteblower accused the company of accounting fraud. Harry Markopolos said that he discovered “an Enronesque business approaching”…leaving the company on the “verge of insolvency.” But after suffering an 11.3% loss, the stock bounced back with a 9.7% gain on Friday.

This upcoming week the Jackson Hole Symposium (Thurs – Sat) will take on a little more significance than normal. Fed Chair Jerome Powell will deliver opening remarks at the Economic Policy Symposium on Thursday and will deliver a speech titled “Challenges for Monetary Policy” on Friday.

Traders are hoping that Powell will calm the markets by hinting at more rate cuts.

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.

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