Stock Market Update Tuesday, August 27th, 2019
Stocks got off to a great start. And at one point, the S&P was up 0.7%.
But after nice gains at the open, the major indices dropped all morning and were negative by lunch.
Once again recession concerns were a weight on the markets.
An inverted yield curve between the 10-year Note and the 2-Year Note (and concern over a possible recession) was the biggest driver behind today’s drop.
The yield between the two fell to the lowest level since 2007. And the 3-month T-bill actually traded higher than the 30-year Bond. According to Bespoke Investment Group, dividends are now yielding more than 30-Year Bonds for the first time since the financial crisis.
Here’s where the major indices ended the day:
- The S&P finished with a 0.3% loss. Down 9 points, the S&P ended at 2,869.
- The DOW ended lower by 0.5%. Dropping 121 points, the DOW closed at 25,778.
- The NASDAQ was down 0.3%. With a 27 point loss, the NASDAQ finished at 7,827.
Crude Oil (CL) snapped its 4-day losing streak today. With an 2.4% gain, CL ended at $54.92 a barrel.
Bank stocks were some of the hardest hit after the inverted yield curve move.
Citigroup (C) lost 1.7% and JP Morgan Chase (JPM) gave up 1.1%.
Johnson & Johnson (JNJ) was a winner today. Up 1.4% after an announcement that the company will need to pay $572 million to settle an opioid case (the fine wasn’t as bad as expected).
And in earnings news, J.M. Smucker (SJM) dropped 8.2% after reporting worse than expected numbers and lowering their future guidance.
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.