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.
U.S. stock fell sharply lower on Tuesday after trade tensions between the United States and European Union escalated. Moreover, the International Monetary Fund (IMF) reduced global growth forecast for 2019, which also dented investor’s confidence. All the major stock indexes closed in negative territory.
The Dow Jones Industrial Average (DJI) closed at 26,150.58, declining 0.7% or 190.44 points. The S&P 500 Index (INX) dropped 0.6% to close at 2,878.20. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 7,909.28, shedding 0.6%. A total of 6.31 billion shares were traded on Tuesday, lower than the last 20-session average of 7.26 billion shares. Decliners outnumbered advancers on the NYSE by 2.74-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 2.70-to-1 ratio. The CBOE VIX increased 8.4% to close at 14.28.
How Did the Benchmarks Perform?
The Dow ended in negative territory for second successive day with 26 stocks of the 30-stock index finishing in the red while four ended in the green. This was the blue-chip index’s largest single-day decline since Mar 22. The tech-heavy Nasdaq Composite finished in the red, marking its biggest daily decline since Mar 27, due to weak performance by large-cap tech stocks.
The S&P 500 also closed in the red reversing the winning streak for eight straight-days. This was the benchmark index’s largest single-day loss since Mar 22. The Industrials Select Sector SPDR (XLI) and Energy Select Sector SPDR (XLE) declined 1.4% and 1.2%, respectively. Notably, nine out of eleven sectors of the broad-market index closed in the red and two finished in the green.
U.S.—EU Trade Tension Heightens
On Apr 8, The U.S. Trade Representative proposed to levy tariffs worth of $11 billion on Eurozone products. An array of products including large commercial aircraft and parts, dairy products and wine will be subject to U.S. tariffs.
This is a retaliatory measure against what the Trump administration believes are illegal subsidies Eurozone countries provide to Airbus. These subsidies will impact sales of U.S. made aircraft, especially those manufactured by The Boeing Co. (BA - Free Report) . Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the European Union (EU) has strongly objected to White House and threatened to impose retaliatory tariffs.The U.S. government has already imposed 25% tariffs on imported steel from Eurozone and 10% tariff on imported aluminum. The EU has retaliated with $3 billion of counter tariffs on U.S. exports. Moreover, President Trump has threatened to levy 25% tariffs on EU auto products. Notably, the U.S- EU trading relationship is worth more than $1 trillion per annum.
IMF Reduces Global Growth Forecast
On Apr 9, the International Monetary Fund (IMF) reduced its global economic growth forecast for 2019. This was the third reduction in last six months. The new estimate for the year is 3.3% compared with 3.5% projected in January and 3.7% forecasted in October. Global growth rate forecast for 2020 was remained flat at 3.6%.
Estimates of yearly growth for the United Sates declined to 2.3% from 2.5%. Eurozone’s growth projection dropped to 1.3% from 1.6% while GDP growth forecast for Canada decreased to 1.5% from 1.9%. However, China’s economy is estimated to grow by 6.3%, higher than the earlier estimate of 6.2%.
The IMF cited trade tensions, likelihood of tighter monetary policy by central banks, appreciation of U.S. dollar price and geopolitical concerns such as Brexit and middle-east problems are near term challenges.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Stock Market News For Apr 10, 2019
U.S. stock fell sharply lower on Tuesday after trade tensions between the United States and European Union escalated. Moreover, the International Monetary Fund (IMF) reduced global growth forecast for 2019, which also dented investor’s confidence. All the major stock indexes closed in negative territory.
The Dow Jones Industrial Average (DJI) closed at 26,150.58, declining 0.7% or 190.44 points. The S&P 500 Index (INX) dropped 0.6% to close at 2,878.20. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 7,909.28, shedding 0.6%. A total of 6.31 billion shares were traded on Tuesday, lower than the last 20-session average of 7.26 billion shares. Decliners outnumbered advancers on the NYSE by 2.74-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 2.70-to-1 ratio. The CBOE VIX increased 8.4% to close at 14.28.
How Did the Benchmarks Perform?
The Dow ended in negative territory for second successive day with 26 stocks of the 30-stock index finishing in the red while four ended in the green. This was the blue-chip index’s largest single-day decline since Mar 22. The tech-heavy Nasdaq Composite finished in the red, marking its biggest daily decline since Mar 27, due to weak performance by large-cap tech stocks.
The S&P 500 also closed in the red reversing the winning streak for eight straight-days. This was the benchmark index’s largest single-day loss since Mar 22. The Industrials Select Sector SPDR (XLI) and Energy Select Sector SPDR (XLE) declined 1.4% and 1.2%, respectively. Notably, nine out of eleven sectors of the broad-market index closed in the red and two finished in the green.
U.S.—EU Trade Tension Heightens
On Apr 8, The U.S. Trade Representative proposed to levy tariffs worth of $11 billion on Eurozone products. An array of products including large commercial aircraft and parts, dairy products and wine will be subject to U.S. tariffs.
This is a retaliatory measure against what the Trump administration believes are illegal subsidies Eurozone countries provide to Airbus. These subsidies will impact sales of U.S. made aircraft, especially those manufactured by The Boeing Co. (BA - Free Report) . Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the European Union (EU) has strongly objected to White House and threatened to impose retaliatory tariffs.The U.S. government has already imposed 25% tariffs on imported steel from Eurozone and 10% tariff on imported aluminum. The EU has retaliated with $3 billion of counter tariffs on U.S. exports. Moreover, President Trump has threatened to levy 25% tariffs on EU auto products. Notably, the U.S- EU trading relationship is worth more than $1 trillion per annum.
IMF Reduces Global Growth Forecast
On Apr 9, the International Monetary Fund (IMF) reduced its global economic growth forecast for 2019. This was the third reduction in last six months. The new estimate for the year is 3.3% compared with 3.5% projected in January and 3.7% forecasted in October. Global growth rate forecast for 2020 was remained flat at 3.6%.
Estimates of yearly growth for the United Sates declined to 2.3% from 2.5%. Eurozone’s growth projection dropped to 1.3% from 1.6% while GDP growth forecast for Canada decreased to 1.5% from 1.9%. However, China’s economy is estimated to grow by 6.3%, higher than the earlier estimate of 6.2%.
The IMF cited trade tensions, likelihood of tighter monetary policy by central banks, appreciation of U.S. dollar price and geopolitical concerns such as Brexit and middle-east problems are near term challenges.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>