Stocks sold off sharply this week, sending the S&P 500 lower by 4.1%. Fears over potentially weakening economic and earnings growth helped fuel the selling, which left stocks at three-month lows going into the third quarter earnings season. The Dow Jones Industrial Average lost 4.2% this week, and the tech-heavy Nasdaq Composite fell 3.7%. The International Monetary Fund (IMF) cut its 2018 and 2019 global growth outlook to 3.7% from 3.9% on Tuesday, citing trade uncertainties that include tariffs between the U.S. and China, a pending Brexit deal, and the new trilateral agreement between the U.S., Canada, and Mexico that's supposed to replace NAFTA. A third quarter earnings warning from specialty chemicals company PPG Industries (PPG) weighed on sentiment this week, dampening hopes of another strong quarter. Financial giants JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) kicked off the Q3 earnings season on Friday with mixed results; JPM and C beat bottom-line estimates, but WFC missed. The financial sector initially had a positive reaction to the earnings results on Friday, but later rolled over to close the week with a total loss of 5.6%. A curve-flattening trade in the bond market didn't bode well for lenders, which depend on the interest-rate differential between what they pay for deposits and what they make on loans.
The S&P 500 got into technical trouble this week, breaching its 50-day moving average on Wednesday and then its 200-day moving average on Thursday. The benchmark index tried to reclaim its 200-day moving average on Friday, but closed right at the key technical mark. The Dow Jones Industrial Average and the Nasdaq Composite breached their 200-day moving averages as well; the Dow eventually reclaimed the key technical level, but the Nasdaq did not.
VIX finished the week roughly 40% highe
Macro :
- EU Sherpas’ Brexit Meeting on Monday Said to Be Cancelled
- Saudi Stocks Sink as Trump, Kingdom Exchange Threats: Inside EM
- Italy’s League, Five Star Support Rises Amid Budget: Ixe Poll
- U.K. Homebuilders May be Pressured by Proposed Cap on Leases
Keep an eye on :
- ARL GY : Aareal Bank Targets Further Acquisitions: Euro Am Sonntag
- ALV GY : Allianz Joins Evolve to Launch Fixed-Income ETF in Canada
- BARC LN : Barclays to Offer U.S. Current Account: FT
- BT/A LN : Greenlight Bought ‘Medium Size’ Position in BT: Times
- CEC GY : Ceconomy Chief Executive Officer Pieter Haas to Leave Company
- DAI GY : Daimler to Offer Hydrogen Engines Across All Models by 2022: AMW
- DPW GY : Deutsche Post May Cut 1,400 Jobs, Bild Am Sonntag Reports
- EDP PL : EDP Says Capital Group Sold Remaining Stake on Oct. 10
- EQN LN : Equiniti eyed for 315-325p-per-share bid by GTCR
- FEVR LN : Fever-Tree engages Morgan Stanley to handle potential buyer
- GETIB SS : Getinge Makes SEK 1.8B Provision for Product Liability Claims
- KBX GY : Knorr Plans No Change on Supervisory Board, Thiele Tells FAS
- NG/ LN : Markey, Warren Question National Grid on Woburn, Mass. Incident
- NHY NO : Norsk Hydro Invests in 2 New Extrusion Presses in North America
- PNDXB SS : Pandox Buys Midland Manchester Hotel
- PSM GY : ProSieben Sees Web Portfolio Value Doubling in Five Years: FAS
- RWE GY : RWE Prepares For Massive Job Cuts, Rheinische Post Reports
- SAN FP : Sanofi’s Cerdelga Faces Patent Challenges: FDA
- FP FP : Total in Talks to Buy Stake in Adani LNG, City Gas Projects: PTI