We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street closed sharply higher on Friday buoyed by a strong rebound in tech stocks. This also enabled U.S. stock markets to partially recover from the rout it faced over the past two days. All three major stock indexes ended in positive territory but closed in the red for the week. However, quarterly earnings results of major banks failed to boost investors’ sentiment.
The Dow Jones Industrial Average (DJI) closed at 25,339.99, gaining 1.2% or 287.16 points. The S&P 500 Index (INX) increased 1.4% to close at 2,767.13. The Nasdaq Composite Index (IXIC) closed at 7,496.89, surging 2.3%. A total of 8.91 billion shares were traded on Friday, higher than the last 20-session average of 7.78 billion shares. Advancers outnumbered decliners on the NYSE by 1.38-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.51-to-1 ratio. The CBOE VIX decreased 14.7% to close at 21.31.
How Did the Benchmarks Perform?
The Dow ended in positive territory after three straight closes in the red. The index partially lost out on an intraday gain of 414.72 points and finally recoups 287.16 points. Meanwhile, 26 components of the 30-stock index finished in the green while four ended in the red.
The S&P 500 also closed in positive territory after snapping a six-day losing streak, its longest since November 2016. The benchmark index’s recovery was led by a jump of 3.2% in the Technology Select Sector SPDR (XLK), 2.2% surge in Communication Services Select Sector SPDR (XLC), a 1.9% gain in Consumer Discretionary Select Sector SPDR (XLY) and a 1.5% rise in Health Care Select Sector SPDR (XLV). Notably, nine out of 11 sectors of the broader market index finished in the green while two closed in the red.
The tech-laden Nasdaq Composite finished in the green after its two consecutive days of losses due to strong showing by FAANG stocks. Friday’s gain was the biggest single-day rise for the tech-heavy index since Mar 26.
U.S. stock markets witnessed this year’s most disastrous performance last week. Technology stocks were hard hit during a market rout as investors’ worried about the lofty valuation of the sector. However, intrinsic value of the sector remained very firm and a steady fall of share prices of major large-cap stocks has given investors an opportunity to enter the market.
Major Banks Beat Expectations but Failed to Lift Market
JPMorgan Chase & Co. (JPM - Free Report) posted strong third quarter results herein both the top and bottom line surpassed the Zacks Consensus Estimate. However, the stock declined 1.1% as investors remained concern about the bank’s future earnings growth in view of a 10% decline in fixed income trading revenues and a 16% fall in mortgage business. (Read More)
Citigroup Inc.’s (C - Free Report) quarterly adjusted earnings per share outpaced the Zacks Consensus Estimate while total revenue was in line with it. Consequently, the share price of Citigroup climbed 2.1%. (Read More)
Wells Fargo & Co.’s (WFC - Free Report) quarterly adjusted earnings per share missed the Zacks Consensus Estimate due to reduced fee income while total revenue was in line with it. Despite missing the bottom line, the stock gained 1.3% primarily due to an improvement of its credit quality and impressive cost control in the reported quarter. (Read More)
Economic Data
The Department of Labor reported that U.S. import price index for the month of September increased 0.5%, higher than the consensus estimate of an increase of 0.2%. Meanwhile, U.S. export price index for the month of September remained flat with the previous month but the consensus estimate was for an increment of 0.1%.
University of Michigan reported that the preliminary reading of the U.S. consumer sentiment index for the month of October was 99, lower than the September’s reading of 100.1. The consensus estimate was for a reading of 100.3.
Weekly Roundup
The second week of October was the worst one for Wall Street since March. All three major stock indexes – The Dow, S&P 500 and Nasdaq Composite – declined 4.2%, 4.1% and 3.7%, respectively. For both the Dow 30 and S&P 500, it was the third straight weekly losses while Nasdaq Composite posted its second successive weekly loss. Notably, the S&P 500 posted its longest weekly drop since the Brexit referendum in June 2016. Consequently, Cboe Volatility index (VIX) reached its highest level since February.
Last week’s market mayhem started due to spike in the yields of 10-year and 30-year U.S. Treasury Notes buoyed by a series of strong economic data. However, higher yields and an indication from the Fed Chair that a rate hike was likely in December made investor’s nervous resulting in panic selling of equities across the board. However, the market recovered partially on Friday after third quarter earnings kicked in.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Stock Market News For Oct 15, 2018
Wall Street closed sharply higher on Friday buoyed by a strong rebound in tech stocks. This also enabled U.S. stock markets to partially recover from the rout it faced over the past two days. All three major stock indexes ended in positive territory but closed in the red for the week. However, quarterly earnings results of major banks failed to boost investors’ sentiment.
The Dow Jones Industrial Average (DJI) closed at 25,339.99, gaining 1.2% or 287.16 points. The S&P 500 Index (INX) increased 1.4% to close at 2,767.13. The Nasdaq Composite Index (IXIC) closed at 7,496.89, surging 2.3%. A total of 8.91 billion shares were traded on Friday, higher than the last 20-session average of 7.78 billion shares. Advancers outnumbered decliners on the NYSE by 1.38-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.51-to-1 ratio. The CBOE VIX decreased 14.7% to close at 21.31.
How Did the Benchmarks Perform?
The Dow ended in positive territory after three straight closes in the red. The index partially lost out on an intraday gain of 414.72 points and finally recoups 287.16 points. Meanwhile, 26 components of the 30-stock index finished in the green while four ended in the red.
The S&P 500 also closed in positive territory after snapping a six-day losing streak, its longest since November 2016. The benchmark index’s recovery was led by a jump of 3.2% in the Technology Select Sector SPDR (XLK), 2.2% surge in Communication Services Select Sector SPDR (XLC), a 1.9% gain in Consumer Discretionary Select Sector SPDR (XLY) and a 1.5% rise in Health Care Select Sector SPDR (XLV). Notably, nine out of 11 sectors of the broader market index finished in the green while two closed in the red.
The tech-laden Nasdaq Composite finished in the green after its two consecutive days of losses due to strong showing by FAANG stocks. Friday’s gain was the biggest single-day rise for the tech-heavy index since Mar 26.
Technology Sector Leads Wall Street’s Partial Recovery
U.S. stock markets witnessed this year’s most disastrous performance last week. Technology stocks were hard hit during a market rout as investors’ worried about the lofty valuation of the sector. However, intrinsic value of the sector remained very firm and a steady fall of share prices of major large-cap stocks has given investors an opportunity to enter the market.
Consequently, shares of Apple Inc. (AAPL - Free Report) , Netflix Inc. (NFLX - Free Report) and Microsoft Corp. (MSFT - Free Report) rose 3.6%, 5.8% and 3.5%, respectively.
Major Banks Beat Expectations but Failed to Lift Market
JPMorgan Chase & Co. (JPM - Free Report) posted strong third quarter results herein both the top and bottom line surpassed the Zacks Consensus Estimate. However, the stock declined 1.1% as investors remained concern about the bank’s future earnings growth in view of a 10% decline in fixed income trading revenues and a 16% fall in mortgage business. (Read More)
Citigroup Inc.’s (C - Free Report) quarterly adjusted earnings per share outpaced the Zacks Consensus Estimate while total revenue was in line with it. Consequently, the share price of Citigroup climbed 2.1%. (Read More)
Wells Fargo & Co.’s (WFC - Free Report) quarterly adjusted earnings per share missed the Zacks Consensus Estimate due to reduced fee income while total revenue was in line with it. Despite missing the bottom line, the stock gained 1.3% primarily due to an improvement of its credit quality and impressive cost control in the reported quarter. (Read More)
Economic Data
The Department of Labor reported that U.S. import price index for the month of September increased 0.5%, higher than the consensus estimate of an increase of 0.2%. Meanwhile, U.S. export price index for the month of September remained flat with the previous month but the consensus estimate was for an increment of 0.1%.
University of Michigan reported that the preliminary reading of the U.S. consumer sentiment index for the month of October was 99, lower than the September’s reading of 100.1. The consensus estimate was for a reading of 100.3.
Weekly Roundup
The second week of October was the worst one for Wall Street since March. All three major stock indexes – The Dow, S&P 500 and Nasdaq Composite – declined 4.2%, 4.1% and 3.7%, respectively. For both the Dow 30 and S&P 500, it was the third straight weekly losses while Nasdaq Composite posted its second successive weekly loss. Notably, the S&P 500 posted its longest weekly drop since the Brexit referendum in June 2016. Consequently, Cboe Volatility index (VIX) reached its highest level since February.
Last week’s market mayhem started due to spike in the yields of 10-year and 30-year U.S. Treasury Notes buoyed by a series of strong economic data. However, higher yields and an indication from the Fed Chair that a rate hike was likely in December made investor’s nervous resulting in panic selling of equities across the board. However, the market recovered partially on Friday after third quarter earnings kicked in.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>