Gap Up To Get Down

Hey everybody, Dave Bartosiak here filling in for Jim “Jimmy G” Giaquinto. The Ultimate Editor will be back to business as usual next week.

This market just can’t seem to hold onto a rally. The overnight fade was in full effect today as yesterday’s late-day rally led to buying in Asia and Europe. By the time we opened stateside, equity markets were up about a half-percent. The bad news is we could not hold onto those gains as the fade algos kicked up to full steam and the market was put under pressure. Chalk it up to continuing trade war pressure, a theme which has been running for weeks now.

Despite selling off all day from the open, the market managed to find itself inching into the green today when compared to yesterday’s outing. The finished the day higher by 3.80 points or 14 bps at 2,826.10. The added 95.20 points or 37 bps at 25,585.70. The was good for 8.73 points or 11 bps at 7,637.01.

Chart of the Day

Facebook (NASDAQ:)

Facebook was very representative of what most of the market saw this week. The gap down from Wednesday afternoon to Thursday morning was met with selling most of yesterday’s session. Today the overnight bid stalled out nearly at the open, ticking up close to the top end of Thursday’s range. From there, the selling pressure mounted and the stock found its way lower throughout the course of the trading day.

I’m keeping an eye on not only yesterday’s low of $179.67, but also the swing low of $178.10 from May 14th. That May 14th level provided some solid ground for the bulls to make a stand. Between both those levels lies the 50-day moving average up at $179.48. Hopefully that provides plenty of support.

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Daily gains can't erase weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle photo

Photo: Michael Nagle

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle

Daily gains can’t erase weekly losses

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Stocks on Wall Street notched modest gains Friday, erasing some of the market’s steep losses from a day earlier.

The upbeat finish to a turbulent week still left the market with its third straight weekly loss.

Stocks swung between gains and losses all week as investors weighed the prospect of a prolonged trade war between the U.S.

Read More Here...

Daily gains can't erase weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle photo

Photo: Michael Nagle

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Caption

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle

Daily gains can’t erase weekly losses

Back to Gallery

Stocks on Wall Street notched modest gains Friday, erasing some of the market’s steep losses from a day earlier.

The upbeat finish to a turbulent week still left the market with its third straight weekly loss.

Stocks swung between gains and losses all week as investors weighed the prospect of a prolonged trade war between the U.S.

Read More Here...

Daily gains can't erase weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle photo

Photo: Michael Nagle

Image 1 of / 1

Caption

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle

Daily gains can’t erase weekly losses

Back to Gallery

Stocks on Wall Street notched modest gains Friday, erasing some of the market’s steep losses from a day earlier.

The upbeat finish to a turbulent week still left the market with its third straight weekly loss.

Stocks swung between gains and losses all week as investors weighed the prospect of a prolonged trade war between the U.S.

Read More Here...

Daily gains can't erase weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle photo

Photo: Michael Nagle

Image 1 of / 1

Caption

Close

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle

Daily gains can’t erase weekly losses

Back to Gallery

Stocks on Wall Street notched modest gains Friday, erasing some of the market’s steep losses from a day earlier.

The upbeat finish to a turbulent week still left the market with its third straight weekly loss.

Stocks swung between gains and losses all week as investors weighed the prospect of a prolonged trade war between the U.S.

Read More Here...

Daily gains can't erase weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle photo

Photo: Michael Nagle

Image 1 of / 1

Caption

Close

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Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle

Daily gains can’t erase weekly losses

Back to Gallery

Stocks on Wall Street notched modest gains Friday, erasing some of the market’s steep losses from a day earlier.

The upbeat finish to a turbulent week still left the market with its third straight weekly loss.

Stocks swung between gains and losses all week as investors weighed the prospect of a prolonged trade war between the U.S.

Read More Here...

Daily gains can't erase weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle photo

Photo: Michael Nagle

Image 1 of / 1

Caption

Close

Image 1 of 1

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated markets. Photographer: Michael Nagle/Bloomberg less Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 24, 2019. U.S. equities climbed at the end of a bruising week in which escalating trade tensions dominated … more Photo: Michael Nagle

Daily gains can’t erase weekly losses

Back to Gallery

Stocks on Wall Street notched modest gains Friday, erasing some of the market’s steep losses from a day earlier.

The upbeat finish to a turbulent week still left the market with its third straight weekly loss.

Stocks swung between gains and losses all week as investors weighed the prospect of a prolonged trade war between the U.S.

Read More Here...

US stocks rise amid trade hopes

New York, May 25 (IANS) US stocks closed higher on Friday, regaining some of the ground it lost in a rout in the previous session, as Wall Street reignited hopes for de-escalation of global trade tensions.

The Dow Jones Industrial Average rose 95.22 points, or 0.37 per cent, to 25,585.69. The S&P 500 increased 3.82 points, or 0.14 per cent, to 2,826.06. The Nasdaq Composite Index climbed 8.72 points, or 0.11 per cent, to 7,637.01.

Nine of the 11 primary S&P 500 sectors ended higher, with financials and materials up 0.77 per cent and 0.50 per cent, outpacing the rest. Consumer staples declined 0.40 per cent, the worst-performing group. Utilities also struggled.

Trade bellwether Boeing stock gained 1.24 per cent, leading the advancers in the Dow. Caterpillar, another trade-sensitive stock, closed up 0.52 per cent.

ALSO READ:   Carbon emissions from big power plants to be quantified

On the economic front, new orders for US manufactured durable goods decreased 2.1 per cent in April to 248.4 billion dollars, following a 1.7-per cent March increase, the Department of Commerce reported Friday. Economists surveyed by MarketWatch had forecast a 2.4-per cent April decline in new orders.

US equities tumbled on Thursday amid a steep sell-off in tech and energy shares.

–IANS

rs

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The Dow Jones Industrial Average has it’s 5th straight negative week

The Dow Jones Industrial Average ended the day up 95.22 points at 25,585.69 while the S&P 500 climbed 0.1% to 2,826.06. The Nasdaq Composite rose 0.1% at 7,637.01. The indexes rebounded slightly from sharp losses on Thursday after President Donald Trump said Thursday afternoon the ongoing trade war could be over quickly.

“We still think the negotiators are going to reach a deal, but it’s clearly going to take a lot longer and be more difficult than investors thought a few weeks ago,” said Kate Warne, investment strategist at Edward Jones. “But any glimmer of hope that progress is being made will help stocks rebound.”

But Friday’s gains were not enough to offset this week’s losses. The Dow dropped 0.7% this week to post its fifth consecutive weekly decline, its longest streak since 2011. The S&P 500 and Nasdaq fell a third straight week of losses, their longest slide since December 2018. The weekly losses come at a time when investors are growing more convinced that the trade war will take longer than expected to conclude and could hurt the economy.

U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. This is the latest economic data set showing cracks in the economy while the world’s largest economies engage in a trade war. IHS Markit said Thursday that U.S. manufacturing activity fell to a nine-year low.

Crude prices dropped 6.6% this week as trade worries spilled over to other markets. Investors also loaded up on Treasurys this week. On Thursday, the 10-year Treasury note yield fell to its lowest level since October 2017.

“It seems, for the moment, [trade] is the only thing investors are thinking about,” said Mike Bailey, director of research at FBB Capital Partners. “You’ve got this one narrow issue that’s basically spreading across the entire market.”

“Investors had been hoping for more certainty,” Bailey said. “Instead, they’re getting more uncertainty across the board.”

Energy and tech were the worst-performing sectors for the week. The energy sector fell 3.4% while tech — the largest S&P 500 sector by market weight — lost 2.8%.

Chipmakers led tech down this week as the VanEck Vectors Semiconductor ETF (SMH) dropped 5.6%. Qualcomm and Broadcom were the worst-performers in the ETF this week, dropping 18.8% and 11.7%, respectively.

Chip stocks have been under pressure as the U.S. increases pressure on Chinese telecom giant Huawei. Last week, the Trump administration made it harder for U.S. companies to do business with Huawei, before granting a temporary 90-day reprieve for the company.

Apple shares also contributed to the tech losses as several analysts raised concern over the company’s exposure to China. The stock ended the week down 5.3%.

“The growing worries around a US/China elongated trade battle and its implications on the tech space are heavily weighing on the minds of both investors and the companies themselves caught in the cross hairs,” Dan Ives, analyst at Wedbush Securities, wrote in a note to clients. “The ‘poster child’ for the US/China trade wars continue to be Apple with the stock under heavy pressure as many competitors are yelling fire in a crowded theater around the potential China impact to Cupertino if this situation worsens.”


The iShares 1-3 Year Treasury Bond ETF (SHY) . Year-to-date, SHY has gained 0.90%, versus a 6.39% rise in the benchmark S&P 500 index during the same period.

SHY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 29 ETFs in the Government Bonds ETFs category.

This article is brought to you courtesy of CNBC.

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5th Straight Declining Week for Dow

(MENAFN – Baystreet.ca)
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.
The Dow Jones Industrials advanced 95.22 points to 25,555.69, but still posted their fifth consecutive weekly decline, their longest since 2011.
The S&P 500 progressed 3.82 points to 2,826.06.
The NASDAQ Composite gained 8.73 points to 7,637.01
The Dow and S&P 500 came into Friday’s session down more than 1% each for the week while the NASDAQ had lost 2.4%.
The S&P 500 and NASDAQ were headed for a third straight week of losses, their longest since last December.
Even so, the indexes rebounded slightly from sharp losses on Thursday after President Donald Trump said Thursday afternoon the ongoing trade war could be over quickly.
Markets in the U.S. will be closed Monday for Memorial Day
Energy and tech were the worst-performing sectors for the week. The energy sector fell 3.4% while tech — the largest S&P 500 sector by market weight — lost 2.8%.
Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei.
Energy and tech are the worst-performing sectors for the week. The energy sector is down 4% while tech — the largest S&P 500 sector by market weight — has lost 2.6%.
Qualcomm docked 18.8%, and Broadcom lost 11.7%, making them the worst-performers in the sector.
Apple shares also contributed to the tech losses as several analysts raised concern over the company’s exposure to China. The stock was down 5.3% on the week.
U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. This is the latest economic data set showing cracks in the economy while the world’s largest economies engage in a trade war. IHS Markit

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