Stock Market Update Thursday, August 22nd, 2019
It was a wild day on Wall Street!
Stocks were up nicely this morning. But weak data and comments from a Fed Member were all it took for the major indices to slide.
The S&P dropped 1.0% after today’s Flash Manufacturing PMI number came in at 49.5. A reading below 50 indicates industry contraction. It was the lowest reading in 10 years!
And with all of the recession and rate cut talk, there’s at least one voting Fed member that is clearly against the idea.
On CNBC, Kansas City Fed President George made it clear that she was against the rate cut last month.
The weak data and realization that not everyone is behind President Trump’s push for low rates (Trump tweeted “Why are we paying much more interest than Germany and certain other countries?” today), created a “perfect storm” and stocks tumbled.
But after trading at session lows around 11:00am ET, stocks worked their way back higher and even turned positive late in the afternoon.
The DOW managed to end the day higher. But the S&P and NASDAQ both suffered small losses.
Here’s where the major indices ended the day:
- The S&P finished with a 0.1% loss. Down 1 points, the S&P ended at 2,923.
- The DOW ended higher by 0.2%. Adding 50 points, the DOW closed at 26,252.
- The NASDAQ was down 0.4%. With a 29 point loss, the NASDAQ finished at 7,991.
Crude Oil (CL) finished lower for the 2nd in a row. With a 0.5% loss, CL ended at $55.40 a barrel.
Retailers continue to report strong earnings.
Dick’s Sporting Goods (DKS) was up 3.6% on better than expected numbers. And Nordstrom (JWN) jumped 15.9% after strong results.
All eyes are now on Fed Chair Jerome Powell.
Tomorrow Powell will deliver a speech at the Jackson Hole banking symposium. Right now traders believe there is a 93.5% chance the Fed will cut rates in September.
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.