Wall Street Took Profits Friday

Wall Street Took Profits Friday

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

FLASH: Wall Street saw investors take profits Friday, with the benchmark S&P 500 index falling nearly 2% as weak factory data from the US, France and Germany led to an inversion of US Treasury yields, fueling fears of a global economic downturn.

A weaker-than-expected Markit PMI reading of US factory activity in March, along with similar reports from Germany, France and Japan, helped send US Treasury yields into an inversion for the 1st time since Y 2007.

US Treasuries Yield Check: 2-yr -8 bpts to 2.32%, 3-yr -9 bpts to 2.25%, 5-yr -9 bpts to 2.26%, 10-yr-8 bpts to 2.46%, 30-yr -8 bpts to 2.89%

An indication of near-term risk, and seen by many on Wall Street as a potential sign of a coming recession and fears of a global slowdown in economic growth.

Germany’s Manufacturing PMI fell to 44.7 from 47.6 in February, serving as a reminder that output in a major export center remains weak.

France’s Manufacturing PMI (actual 49.8; prior 51.5) fell below 50.0, which indicated that the country’s manufacturing sector was also in contraction.

The weak data sent investors flocking to safe-haven bonds, which drove the yield on the 10-yr German bund (-0.011%) into negative territory for the 1st time since Y 2016. The lower yields in Europe likely contributed to increased buying interest in US Treasuries, which helped drive yields even lower.

Friday, the major US stock market indexes finished at:DJIA -460.19 at 25502.32, NAS Comp -196.29 at 7642.66, S&P 500 -54.17 at 2800.71

Volume:Trade on the NYSE came in at 1.1-B/shares exchanged

  • NAS Comp +15.2% YTD
  • Russell 2000 +11.7% YTD
  • S&P 500 +11.7% YTD
  • DJIA +9.3% YTD

HeffX-LTN’s overall technical outlook for the major US stock indexes is Bullish at the week ending 22 March 2019.

Have a terrific weekend.

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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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