|Day's range||2,596.52 - 2,635.07|
|52-week range||2,532.69 - 2,940.91|
Stocks give up some early gains as a chaotic week rolls on on Wall Street. Plus - GE getting some LOVE - yes love on Wall Street. It's the call of the day. And - the CEO of Norwegian Cruise Lines gives us the trade ahead of prime winter vacation season. Plus - Starbucks with a big reveal in New York - we have a live report from their investor day. Catch The Final Round at 3:00 p.m. ET with Jen Rogers, Yahoo Finance's Editor-in-Chief Andy Serwer and markets correspondent Myles Udland.
Investing.com - Yo-yo days are back in oil, with the market falling as much in a day as it rose previously, as global growth fears offset bullish energy fundamentals, if any.
(Bloomberg) -- It’s getting harder to argue that the American economy’s showing signs of trouble, but judging by stocks, things don’t look so well. The divergence is getting to be historic.
The sour mood on Wall Street Friday came after equities slumped from Asia to Europe on concern that Chinese growth is slowing. President Donald Trump attributed the latest data to his trade war, even suggesting a deal could come soon. “People see the challenges into 2019, and it’s the same litany of fundamental challenges with revenue growth, global growth, all of these questions,” said Yousef Abbasi, director of U.S. institutional equities and global market strategist at INTL FCStone.
On December 6–13, US equity indexes had the following correlations with US crude oil January futures: the S&P Mid-Cap 400 (IVOO): -51.5% the S&P 500 (SPY): -49.7% the Dow Jones Industrial Average (DIA): -43.3%
Starbucks stock was recently down 3.5% to near $65 as U.S. indexes retreated. The company yesterday reaffirmed its fiscal 2018 financial targets, released in November, that included global comparable-store-sales growth closer to 3% than 5%, and consolidated revenue growth of 5% to 7%. Investors, however, may have chosen instead to focus on the company’s longer-term targets, which included estimates of earnings-per-share growth (according to nonstandard accounting) of “at least” 13% in fiscal 2020 and 2021—and “longer-term” revenue and non-GAAP EPS growth of 7% to 9%, and at least 10%, respectively.
Disappointing economic data in China and Europe have added to concerns about a growing slowdown and helped sink the market today.
On December 6–13, major energy ETFs had the following correlations with US crude oil January futures: the Alerian MLP ETF (AMLP): 68.8% the Energy Select Sector SPDR ETF (XLE): 60% the SPDR S&P Oil & Gas Exploration & Production ETF (XOP): 58.4% the VanEck Vectors Oil Services ETF (OIH): 2.8%
At a time when jitters over the economy and earnings are already running high, Trump’s travails are only serving to create more doubts among investors. “That cloud of uncertainty becomes bigger,” said Joseph LaVorgna, chief economist for the Americas at Natixis.
The S&P 500 fell 27 points or 1% as of 9:30 AM ET (14:30 GMT), while the Dow decreased 189 points, or 0.7%, and the tech-heavy Nasdaq Composite slipped 88 points, or 1.2%.
“There’s still some upside potential, but there is a whole laundry list of factors” that will either slow the economy or threaten to slow it, said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. Investors see a 77 percent chance the Fed will move next week and are betting on less than one full quarter-point increase in 2019, according to pricing in interest rate futures. More than half the economists said risks, with respect to growth and inflation, were now tilted to the downside.
According to estimates compiled by Bloomberg, Wall Street analysts expect earnings for the S&P 500 to grow by 12 percent in 2018 and by an additional 9 percent in 2019. If you exclude the period before July 2011, when earnings were still recovering from the financial crisis, cyclically adjusted earnings rise modestly to $104.
The behavior of markets in the waning weeks of 2018 is leading to a much more bearish view for next year, Cantor’s Peter Cecchini wrote in a note Thursday, citing tighter monetary-policy conditions as a key reason. “Credit markets have thus far held up relatively well in this market correction,” Cecchini said.