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Markets gained traction on Tuesday, supported by a rally in energy shares after oil prices settled at their highest level for the month. The major benchmarks ended in the green for the day. Meanwhile, investors closely followed the FOMC’s two-day policy meeting, speculating that a rate hike would be announced at its conlcusion. Shares of Facebook continued to decline after Federal Trade Commission decided to probe into the data debacle which has taken markets by the storm.
The Dow Jones Industrial Average (DJI) increased 0.5% to close at 24,730. The S&P 500 gained 0.2% to close at 2,717. The tech-laden Nasdaq Composite Index closed at 7,364, increasing 0.3%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.3% to close at 18.20. A total of 6.26 billion shares were traded on Tuesday, lower than the last 20-session average of 7.17 billion shares. Decliners outnumbered advancers on the NYSE by a 1.28-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow gained 119 points on Tuesday to end in positive territory a day after sinking more than 300 points earlier in the session. The day’s gains for the blue-chip index were buoyed by a surge in the shares of Boeing (BA - Free Report) and Nike (NKE - Free Report) , which gained 1.8% and 1.7%, respectively.
Meanwhile, the S&P 500 advanced 4 points to also end in the green. Of the 11 major segments of the S&P 500, six ended in the green, with energy shares leading the advancers. The Energy Select Sector SPDR ETF (XLE) surged 0.9% on Tuesday.
Gains for the S&P 500 were buoyed by a renewed strength in energy stocks after oil prices hit their highest level for this month. Growing tensions between Iran and Saudi Arabia related to oil production as well as expectations of reduction in crude production in Venezuela led to speculations of a supply shock. This led to a surge in oil prices.
Shares of Facebook, Inc. declined 6.8% in a single session on Monday to post its worst dip in a day since March 26, 2014. Shares of the tech behemoth nosedived following reports that political analytics firm Cambridge Analytica was able to easily gather information from over 50 million user profiles without their consent. Such an incident raises questions over Facebook’s data management and protection from unauthorized third party access which is a direct breach of privacy.
The declining trend continued on Tuesday following Federal Trade Commission’s decision to probe into the matter. The body would be investigating into whether Facebook violated any laws by ‘transferring’ personal data of its 50 million users to the analytics firm. What further led the stock lower was news that the company’s security chief would soon step down from his post.
However, an official from Facebook revealed that they had not been intimated of any formal investigation by the FTC and that they are expecting to at least receive a letter from the commission regarding the probe. Such news weighed on the investors’ sentiments.
Possibility of a Rate Hike keeps Investors on Tenterhooks
Market watchers also kept a close watch on the two-day Federal Open Market Committee meeting which began Tuesday afternoon. The CME Fed Watch Tool has predicted that the odds of a rate hike by 0.25 percentage points on Mar 21 are around 94.4%. This has kept investors worried as they expect a more hawkish approach from the Fed toward raising interest rates as well as unwinding its humungous balance sheet.
This would be Jerome Powell’s first conference after taking charge as the Fed Chair. A spike in interest rates shifts investors’ focus from stocks to bonds as the latter becomes more appealing. Speculations of this nature also weighed on the investors’ sentiments.
U.S. to impose $60 Billion in Annual Tariffs on China
According to a report by The Washington Post, President Trump is ready to impose $60 billion in annual tariffs on China. The report also stated that this was actually double the amount which was initially proposed. Further, tariffs would be applicable on than a 100 products which were made using “stolen American intellectual property.”
FedEx Corporation (FDX - Free Report) reported better-than-expected results in the third quarter of fiscal 2018 (ended Feb 28, 2018), driven by higher base rates, increased volumes at the Ground and Freight segments and a favorable impact from fuel. (Read More)
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Stock Market News For Mar 21, 2018
Markets gained traction on Tuesday, supported by a rally in energy shares after oil prices settled at their highest level for the month. The major benchmarks ended in the green for the day. Meanwhile, investors closely followed the FOMC’s two-day policy meeting, speculating that a rate hike would be announced at its conlcusion. Shares of Facebook continued to decline after Federal Trade Commission decided to probe into the data debacle which has taken markets by the storm.
The Dow Jones Industrial Average (DJI) increased 0.5% to close at 24,730. The S&P 500 gained 0.2% to close at 2,717. The tech-laden Nasdaq Composite Index closed at 7,364, increasing 0.3%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.3% to close at 18.20. A total of 6.26 billion shares were traded on Tuesday, lower than the last 20-session average of 7.17 billion shares. Decliners outnumbered advancers on the NYSE by a 1.28-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow gained 119 points on Tuesday to end in positive territory a day after sinking more than 300 points earlier in the session. The day’s gains for the blue-chip index were buoyed by a surge in the shares of Boeing (BA - Free Report) and Nike (NKE - Free Report) , which gained 1.8% and 1.7%, respectively.
Meanwhile, the S&P 500 advanced 4 points to also end in the green. Of the 11 major segments of the S&P 500, six ended in the green, with energy shares leading the advancers. The Energy Select Sector SPDR ETF (XLE) surged 0.9% on Tuesday.
Gains for the S&P 500 were buoyed by a renewed strength in energy stocks after oil prices hit their highest level for this month. Growing tensions between Iran and Saudi Arabia related to oil production as well as expectations of reduction in crude production in Venezuela led to speculations of a supply shock. This led to a surge in oil prices.
Meanwhile, the Nasdaq ticked up 20 points to end in the positive territory. Gains for the tech-laden index were rather broad-based. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Facebook Continue to Decline
Shares of Facebook, Inc. declined 6.8% in a single session on Monday to post its worst dip in a day since March 26, 2014. Shares of the tech behemoth nosedived following reports that political analytics firm Cambridge Analytica was able to easily gather information from over 50 million user profiles without their consent. Such an incident raises questions over Facebook’s data management and protection from unauthorized third party access which is a direct breach of privacy.
The declining trend continued on Tuesday following Federal Trade Commission’s decision to probe into the matter. The body would be investigating into whether Facebook violated any laws by ‘transferring’ personal data of its 50 million users to the analytics firm. What further led the stock lower was news that the company’s security chief would soon step down from his post.
However, an official from Facebook revealed that they had not been intimated of any formal investigation by the FTC and that they are expecting to at least receive a letter from the commission regarding the probe. Such news weighed on the investors’ sentiments.
Possibility of a Rate Hike keeps Investors on Tenterhooks
Market watchers also kept a close watch on the two-day Federal Open Market Committee meeting which began Tuesday afternoon. The CME Fed Watch Tool has predicted that the odds of a rate hike by 0.25 percentage points on Mar 21 are around 94.4%. This has kept investors worried as they expect a more hawkish approach from the Fed toward raising interest rates as well as unwinding its humungous balance sheet.
This would be Jerome Powell’s first conference after taking charge as the Fed Chair. A spike in interest rates shifts investors’ focus from stocks to bonds as the latter becomes more appealing. Speculations of this nature also weighed on the investors’ sentiments.
U.S. to impose $60 Billion in Annual Tariffs on China
According to a report by The Washington Post, President Trump is ready to impose $60 billion in annual tariffs on China. The report also stated that this was actually double the amount which was initially proposed. Further, tariffs would be applicable on than a 100 products which were made using “stolen American intellectual property.”
Stocks That Made Headlines
FedEx (FDX - Free Report) Beats on Q3 Earnings, Raises Fiscal 2018 Outlook
FedEx Corporation (FDX - Free Report) reported better-than-expected results in the third quarter of fiscal 2018 (ended Feb 28, 2018), driven by higher base rates, increased volumes at the Ground and Freight segments and a favorable impact from fuel. (Read More)
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>