Crude Oil Dives, Energy Stocks Weight on Broad Market

Crude Oil Dives, Energy Stocks Weight on Broad Market

Crude Oil Dives, Energy Stocks Weight on Broad Market

$DIA, $SPY, $QQQ, $RUTX, $USO, $VXX

The S&P 500 closed Tuesday with a loss of 0.2%. The benchmark index climbed as high as 1.0% on news from the White House of US-China trade negotiations being back on, but energy stocks eventually led the broader market South as WTI Crude Oil prices dove for the 12th day running.

NYMEX WTI Crude Oil dove 7.0% to 55.67 bbl, settling at its lowest mark since November 2017. Crude Oil extended losses in the wake of OPEC’s monthly supply report, in which it cut its Y 2019 Crude Oil demand forecast for the 4th straight month.

Thus, leading the Crude Oil-sensitive energy sector 2.4% lower.

The S&P 500 energy sector is now down 13.9% since the start of October while WTI Crude Oil is off 27.6% from its 3 October highs.

Tuesday, the leading S&P sector standings were the financials (+0.6%), industrials (+0.5%), and utilities (+0.4%) sectors.

The trade-sensitive industrials group had a relatively strong performance after National Economic Council Director Larry Kudlow confirmed that the US and China have resumed trade discussions.

The information technology sector added a slim gainer of 0.1%.

Apple (NASDAQ:AAPL) 192.23, -1.94 lost 1.0% on another guidance warning from one of its suppliers, Qorvo (NASDAQ:QRVO) 63.65, -0.15, -0.2%, which cut its guidance due to “recent demand changes for Flagship smartphones.”

The Philadelphia Semiconductor Index added 1.4% to follow the prior session’s dive of 4.4%.

US Treasuries rose, pushing yields lower across the curve. The 2-yr yield lost 5 bpts to 2.88%, and the 10-yr yield lost 4 bpts to 3.15%.

The US Dollar (.DXY) Index fell 0.4% to 97.19.

Overseas, global markets edged mostly higher on Tuesday with China’s Shanghai Composite (+0.9%) and Germany’s DAX (+1.3%) showing relative strength.

Tuesday, the major US stock market indexes finished at: DJIA -100.69 at 25286.49, NAS Comp +0.01 at 7201.08, S&P 500 -4.04 at 2722.32

Volume: Trade on the NYSE came in at 952-M/shares exchanged

  • NAS Comp +4.3% YTD
  • DJIA+2.3% YTD
  • S&P 500 +1.8% YTD
  • Russell 2000 -1.4% YTD

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
13 November 2018 QQQ 166.9 Bearish (-0.31) 162.80 169.45
13 November 2018 DIA 252.39 Neutral (-0.21) 251.54 253.74
13 November 2018 SPY 272.22 Bearish (-0.41) 272.17 274.87

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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