Gloom on Wall Street, Lower Crude Oil Prices Hit Stocks Globally
$DIA, $SPY, $QQQ, $VXX
Global stock markets fell Wednesday after some disappointing earnings reports and as a drop in Crude Oil prices dragged down shares in energy companies.
The FTSE 100 of Britain dropped 1% to 6,949 while Germany’s DAX fell 1% as well, to 10,649. The CAC 40 in France lost 0.8% to 4,506.
Dow and S&P futures both were down 0.4% pre-open, auguring another soft start for Wall Street markets. They fnished mixed on the day.
A drop in a US consumer confidence index and disappointing Q-4 earnings from big name companies raised worries over consumer spending, a critical driver of US growth.
Sherwin-Williams had its worst day in 7 years, losing 10.9%, while Whirlpool plunged 10.8%. Under Armour’s shares sank 13.2%, its biggest drop in almost 8 years.
Apple (NASDAQ:AAPL) reported lower Auarterly sales, though Comcast (NASDAQ:CMCSA) and Coca-Cola’s (NYSE:KO) reports were more upbeat Wednesday.
Apple finished -2.6% at 115.12, of -3.13
Investors are keeping an eye on US new home sales and a survey of the US services sector. A pick-up could consolidate Wall Street expectations that the Fed will raise interest rates as soon as December.
- September New Home Sales: Actual 593-K, consensus 610-K, Prior 575-K revised from 609-K
Crude Oil prices were down after the American Petroleum Institute (API) reported a much larger than expected buildup in US Crude inventories.
- December WTI Crude Oil futures fell 0.70, to 49.17 bbl
- Brent Crude dropped 0.73 to 50.06 bbl after falling 0.67 Tuesday.
Japan’s Nikkei 225 edged 0.2% higher to 17,391.84, but most other regional benchmarks fell. Hong Kong’s Hang Seng dropped 1% to 23,325.43 and Australia’s S&P/ASX 200 dropped 1.5 percent to 5,359.80. South Korea’s Kospi lost 1.1% to 2,013.89 and India’s Sensex lost 0.8% to 27,857.85. Markets in Southeast Asia and Taiwan also were mostly lower on the day.
Wednesday, the major US stock market indexes finished at: DJIA +30.06 at 18199.33, NAS Comp -33.13 at 5250.27, S&P 500 -3.73 at 2139.43
Volume: Trade was about average with 863-M/shares exchanged on the NYSE.
- Russell 2000: +6.1% YTD
- NAS Comp +4.9% YTD
- S&P 500 +4.7% YTD
- DJIA +4.4% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Neutral (-0.05)||Neutral (-0.02)||Neutral (-0.23)||Neutral (0.11)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Neutral (-0.16)||Neutral (-0.15)||Bearish (-0.44)||Neutral (0.10)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Neutral (0.21)||Neutral (0.16)||Neutral (0.17)||Bullish (0.29)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.39)||Very Bearish (-0.58)||Bearish (-0.38)||Neutral (-0.21)|