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Markets closed in the red on Monday as investors awaited Jerome Powell’s testimony later in the week. Further, stronger-than-expected jobs data for June also resulted in lower hopes for a rate cut by the Fed in its next meeting. The three major benchmarks ended in the negative territory.
The Dow Jones Industrial Average (DJI) decreased 0.4%, to close at 26,806.14. The S&P 500 decreased 0.5% to close at 2,975.95. The tech-laden Nasdaq Composite Index closed at 8,098.38, losing 0.8%. The fear-gauge CBOE Volatility Index (VIX) increased 10.5% to close at 14.68. Decliners outnumbered advancers on the NYSE by a 2.30-to-1 ratio. On Nasdaq, a 2.66-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow dipped 116 points to close in the red. Losses for the 30-stock index were broad-based. Shares of Boeing (BA - Free Report) declined 1.3% and weighed on the Dow. The aerospace giant lost out on a $5.5 billion deal with a Saudi Arabian airlines company to Airbus. Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 lost 14.5 points to end in negative territory. Of the 11 major sectors of the S&P 500, six ended in the red, with materials and technology stocks leading the decliners. Materials Select Sector SPDR Fund (XLB) and Technology Select Sector SPDR Fund (XLK) decreased 1.2% and 0.8%, respectively on Monday.
Meanwhile, the Nasdaq dropped 63.4 points to also close in the red. Losses for the Nasdaq were broad-based. Further, shares of Apple (AAPL - Free Report) dipped 2.1% and weighed on the Nasdaq.
Investors Cut Back on Rate Reduction Hopes
Following healthy jobs data for June, investors have lowered their hopes of a rate cut by the Federal Reserve at the end of its meeting this month. Per the latest report by the Labor Department on Jul 5, the U.S. economy added a staggering number of jobs last month.
There was a total of 240,000 new job additions last month, significantly higher than the consensus estimate of 170,000. This points toward a healthy economy, essentially weakening the case for a rate cut. Such developments weighed on the investor sentiment. Moreover, market-watchers also look forward to Fed Chief Jerome Powell’s testimony later this week.
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 Jul 9, 2019
Markets closed in the red on Monday as investors awaited Jerome Powell’s testimony later in the week. Further, stronger-than-expected jobs data for June also resulted in lower hopes for a rate cut by the Fed in its next meeting. The three major benchmarks ended in the negative territory.
The Dow Jones Industrial Average (DJI) decreased 0.4%, to close at 26,806.14. The S&P 500 decreased 0.5% to close at 2,975.95. The tech-laden Nasdaq Composite Index closed at 8,098.38, losing 0.8%. The fear-gauge CBOE Volatility Index (VIX) increased 10.5% to close at 14.68. Decliners outnumbered advancers on the NYSE by a 2.30-to-1 ratio. On Nasdaq, a 2.66-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow dipped 116 points to close in the red. Losses for the 30-stock index were broad-based. Shares of Boeing (BA - Free Report) declined 1.3% and weighed on the Dow. The aerospace giant lost out on a $5.5 billion deal with a Saudi Arabian airlines company to Airbus. Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 lost 14.5 points to end in negative territory. Of the 11 major sectors of the S&P 500, six ended in the red, with materials and technology stocks leading the decliners. Materials Select Sector SPDR Fund (XLB) and Technology Select Sector SPDR Fund (XLK) decreased 1.2% and 0.8%, respectively on Monday.
Meanwhile, the Nasdaq dropped 63.4 points to also close in the red. Losses for the Nasdaq were broad-based. Further, shares of Apple (AAPL - Free Report) dipped 2.1% and weighed on the Nasdaq.
Investors Cut Back on Rate Reduction Hopes
Following healthy jobs data for June, investors have lowered their hopes of a rate cut by the Federal Reserve at the end of its meeting this month. Per the latest report by the Labor Department on Jul 5, the U.S. economy added a staggering number of jobs last month.
There was a total of 240,000 new job additions last month, significantly higher than the consensus estimate of 170,000. This points toward a healthy economy, essentially weakening the case for a rate cut. Such developments weighed on the investor sentiment. Moreover, market-watchers also look forward to Fed Chief Jerome Powell’s testimony later this week.
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 >>