Stocks finish with losses – here are the 2 things traders are focusing on right now…

Stock Market Update Sunday, September 29th, 2019

Stocks finished with losses last week, with trade concerns driving the markets lower.

On Monday, stocks were mixed after a quiet trading session.

Stocks started the day higher on Tuesday. But after news hit that there could be a formal impeachment inquiry against President Trump, stocks dropped. 

On Wednesday, the markets shook off the impeachment inquiry (a formal announcement was made on Tuesday night by House Speaker, Nancy Pelosi). The major indices finshed the day higher, erasing more than half of Tuesday’s losses.

Then on Thursday stocks strugggled again. After a mixed start, stocks dropped.

But Friday was when stocks really moved. There was a big reversal, elminating early gains, after news that the White House is looking into ways to curb U.S. invesment in China. 

There are 2 things moving the markets right now:

  1. Trade With China – There were mixed messages on trade last week. But news on Friday was probably the most telling, after reports that the U.S. is looking into limiting U.S. investments in China and even delisting some Chinese stocks from major U.S. exchanges. The news erased small gains on Friday, and set the major indices to lows of the week.
  2. Impeachment Worries – Although some might argue that impeachment shouldn’t be an issue for the markets (it’s unlikely the Republican led Senate will vote for impeachment), impeachment headlines and general uncerainity were a concern last week, leading to the first wave of selling on Tuesday.

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 2,962.
  • The DOW ended lower by 0.4%. Dropping 115 points, the DOW closed at 26,820.
  • The NASDAQ was down 2.2%. With a 178 point loss, the NASDAQ finished at 7,940.

Crude Oil (CL) finished lower for 4 days straight. With a 4.0% loss, CL ended at $55.86 a barrel.

Semiconductor stocks and Chinese companies were some of the hardest hit on Friday.

Micron Technology (MU) finished with an 11.1% loss on Friday, but the loss also came from earnings.

And Chinese company Alibaba (BABA) finished 5.5% lower on Friday. Baidu (BIDU) was another loser, down 3.7% after news that the White House has discussed the possiblity of de-listing Chinese companies from U.S. exchanges.

On a positive note, Wells Fargo Bank (WFC) bucked the downtrend and finished higher with a 3.8% gain on Friday, after announcing a new permanet CEO.

This week traders will keep a close eye on any trade news. We’ll also get jobs data with the Jobs Report released on Friday.

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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