Gloom on Wall Street, Lower Crude Oil Prices Hit Stocks Globally

Gloom on Wall Street, Lower Crude Oil Prices Hit Stocks Globally

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)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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