1/8/20 Market Notes
After initially trading near the flat line with mild attempts at new gains, stocks lost momentum to end lower for the session.
The Dow Jones Industrial Average ended 120 points (0.42%) lower, while the S&P 500 fell 0.28% and the Russell 2000 fell 0.21%, the NASDAQ ended near the flat line with a 0.03% decline. All eleven sectors of the S&P were lower, as the Real Estate sector led lower with a 1.19% drop. Communication Services, Monday’s best performing sector, ended 0.04% lower after spending most of the day in positive territory. Amongst the Dow stocks, Boeing (BA) gained 1%, while Merck (MRK) led decliners with a 2.66% drop. The U.S.
dollar strengthened slightly, while Treasury yields climbed a bit with the benchmark Ten Year Yield ending at 1.825%. Oil prices fell 1% in spite of rising concerns of renewed armed conflict in the Middle East, while Gold prices rose another ¼% to end at $1,572.
Asian bourses are off by more than 1% overnight as the rising risks of a military conflict between the United States and Iran unnerve regional investors. European shares were lower, but have recovered along with U.S. premarket equity future which had been down by as much as 200 point before rebounding into positive territory by 7 am (EST) Wednesday morning.
Looking past geopolitical events, earnings will likely be the key driver for stocks in the coming weeks. As such, Friday’s Wholesale Inventories report as well as next Tuesday’s Consumer Price Index and Small Business Confidence Index are key economic releases. While earnings will begin to trickle in next week, the bulk of earnings releases will not begin until January 20th.
The 1879 Advisors Investment Committee
Disclosures: This market commentary is written by the 1879 Advisors Investment Committee and represents the views of 1879 Advisors. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.