Connect with us

Finance

Wall Street Bloodbath Continues into Thursday

Highly volatile U.S. equity markets plunged for the second straight day in a continuation of the bloodbath on October 10 that later savaged world markets.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

New York, NY, United States (4E) – Highly volatile U.S. equity markets plunged for the second straight day in a continuation of the bloodbath on October 10 that later savaged world markets.

Investors are fleeing riskier assets like stocks and piling onto traditional safe havens like bonds and gold. They now turn for some succour to corporate earnings reports — which are widely expected to be on the upside — to be released Friday. A market correction is now a distinct possibility.

And all this is taking place in October, a month notorious for its long list of painful sell-offs in the past.

Stocks fell sharply Thursday in a second straight day of fear and angst on Wall Street. Analysts said investors are ditching equities worldwide because of fears of rapidly rising interest rates and a possible global economic slowdown due to Trump’s trade war.

The blue chip Dow Jones Industrial Average closed 545.91 points lower at 25,052.83, bringing its two-day losses to more than 1,300 points. The combined loss wiped-out the Dow’s gains for the entire year.

The S&P 500, the large-company stock index, fell 2.1 percent to 2,728.37 and posted its sixth straight decline. The NASDAQ Composite retreated 1.3 percent to 7,329.06. It did, however,briefly enter correction territory at its lows on Thursday. The broad index also closed below its 200-day moving average for the first time since April.

The Dow fell as much as 698.97 points at its lows during the day. The indices temporarily recovered after a report said President Donald Trump and Chinese President Xi Jinping planned to meet at next month’s G-20 summit, instilling a fleeting hope the full-blown trade war between both countries might not worsen any further.

The S&P 500 has lost 6 percent during so far this month and is now higher by just 2 percent for 2018.

Tech stocks, the long-time market leaders, have been hit hard in the latest rout as Chinese tariffs and security concerns over Made in China tech products have put these companies in a bad light. The NASDAQ, however, performed better than both the Dow and the S&P 500 on Thursday.

Despite this, the NASDAQ is still 9.6 percent off its all-time high in late August. FAANG stocks took a beating. Amazon fell 2.04 percent; Apple stood 0.88 percent lower; Netflix gave up 1.47 percent while Google tripped by 0.18 percent. Facebook, however, ended higher.

The Russell 2000, an index of small-company stocks, fell into official correction territory after sliding nearly 2 percent in Thursday’s bloodbath. The index is now 11.2 percent below its August 31 record high.

“This is another bad day,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “One of the discouraging things is the market really tried to rally during the day and it couldn’t hold on to it.”

“Is this the big one? Is it 2008? I think the better comparison is where we were at the end of January,” said McMillan.

Investors remain antsy over tariff concerns and a recent jump in interest rates. Trump added fuel to the fire by blasting the Federal Reserve for continuing to increase a benchmark rate affecting both business and consumer loans.

“It’s a momentum correction, not a portfolio correction,” said Joe Terranova, chief market strategist at Virtus Investment Partners. “While we have a bias to believe 2008 could happen again, I don’t think this is the case.”

Article – All Rights Reserved.
Provided by FeedSyndicate

Invests are pleased to have a team of talented correspondents, who are able to bring you quality content on a daily basis. The editorial team cover every industry and have leading market experts from the stock market, ex military journalists, cryptocurrency to health and lifestyle. If it’s important to you it’s important to us and we’ve got the best in the business bringing it to you.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Finance

Facebook Unable to Identify Who Was Behind Network of Fake Accounts

Facebook said Tuesday it had been unable to determine who was behind dozens of fake accounts it took down shortly before the 2018 U.S. midterm elections.

“Combined with our takedown last Monday, in total we have removed 36 Facebook accounts, 6 Pages, and 99 Instagram accounts for coordinated inauthentic behavior,” Nathaniel Gleicher, head of cybersecurity policy, wrote on the company’s blog.

Editor Team

Published

on

San Francisco, CA, United States (VOA) – Facebook said Tuesday it had been unable to determine who was behind dozens of fake accounts it took down shortly before the 2018 U.S. midterm elections.

“Combined with our takedown last Monday, in total we have removed 36 Facebook accounts, 6 Pages, and 99 Instagram accounts for coordinated inauthentic behavior,” Nathaniel Gleicher, head of cybersecurity policy, wrote on the company’s blog.

At least one of the Instagram accounts had well over a million followers, according to Facebook.

A website that said it represented the Russian state-sponsored Internet Research Agency claimed responsibility for the accounts last week, but Facebook said it did not have enough information to connect the agency that has been called a troll farm.

“As multiple independent experts have pointed out, trolls have an incentive to claim that their activities are more widespread and influential than may be the case,” Gleicher wrote.

Sample images provided by Facebook showed posts on a wide range of issues. Some advocated on behalf of social issues such as women’s rights and LGBT pride, while others appeared to be conservative users voicing support for President Donald Trump.

The viewpoints on display potentially fall in line with a Russian tactic identified in other cases of falsified accounts. A recent analysis of millions of tweets by the Atlantic Council found that Russian trolls often pose as members on either side of contentious issues in order to maximize division in the United States.

– Courtesy VOA

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Finance

At $50M, the ‘Pink Legacy’ Diamond Shines Brightest in Christie’s Sale

The ‘Pink Legacy’, a diamond weighing just under 19 carats, fetched a record 50.375 million Swiss francs ($50 million) as it outshone all other auction lots at Christie’s in Geneva on Tuesday.

Editor Team

Published

on

Geneva, Switzerland (VoA) – At $50M, ‘Pink Legacy’ Diamond Shines Brightest in Christie’s Sale

The ‘Pink Legacy’, a diamond weighing just under 19 carats, fetched a record 50.375 million Swiss francs ($50 million) as it outshone all other auction lots at Christie’s in Geneva on Tuesday.

Graded “vivid”, the highest rating for a pink diamond’s color, the gem is internally pure with a rectangular cut, and mounted on a platinum ring.

Once owned by the Oppenheimer Family, who built De Beers into the world’s biggest diamond trader, the diamond had a pre-sale estimate of $30 to $50 million. The identity of the seller was not disclosed.

Vivid colored diamonds are the most strongly saturated gems, displaying the optimum hue of the stone. Most pink diamonds of this color weigh less than one carat, the auction house – which was holding its semi-annual jewellery sale – said.

Christie’s said the ‘Pink Legacy’ achieved a new per-carat record for a pink diamond, and was the second most expensive one ever sold at auction.

($1 = 1.0073 Swiss francs)

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Finance

Wall Street Woes Continue for Second Straight Day

Stocks fell again Tuesday on unpredictable trading, not as lavishly as Monday’s bloodbath, but still bad enough for investors to warn of continuing volatility for the remainder of the year.

Editor Team

Published

on

Arthur J. Villasanta – Fourth Estate Contributor

Neew York, NY, United States (4E) – Stocks fell again Tuesday on unpredictable trading, not as lavishly as Monday’s bloodbath, but still bad enough for investors to warn of continuing volatility for the remainder of the year.

Apple was again a major source of Wall Street’s woes Tuesday, and was joined by oil, whose price fell by more than 7%. Apple’s stocks continue to bleed from the news one of its major Chinese suppliers cut its outlook for its fiscal second quarter in 2019 because Apple predicted lower sales.

The Dow Jones Industrial Average yesterday fell 100.69 points to 25,286.49. The S&P 500 was a well of bad news, stumbling 0.2 percent to 2,722.18 for its fourth straight decline. The NASDAQ Composite closed almost unchanged at 7,200.87.

At their session highs, the Dow and S&P 500 rose more than 100 points and 1 percent, respectively. The NASDAQ had gained as much as 1.6 percent. The major indices hit their session highs after the White House confirmed reports of renewed talks between the U.S. and China on trade. But Apple and oil doused whatever optimism was generated by this seeming piece of good news on the trade front.

Yesterday, energy was the worst-performing sector after crude prices fell to their lowest levels in a year. Wall Street now appears to be held hostage by Apple. Stock again sank into the red in the afternoon after Apple tumbled on the lack of positive news.

“I’m not convinced this tech skittishness is over,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. “Normally, I wouldn’t say one sector can drag the entire market lower, but tech is the biggest sector.”

On Monday, the Dow Jones Industrial Average fell an enormous 602 points in another day of extreme and unnerving volatility at U.S. equity markets.

Monday’s huge losses brought the Dow’s decline over the past two sessions to 804 points. The Dow closed at 25,387.18. The tech-heavy NASDAQ Composite retreated 2.8 percent to 7,200.87 and fell back into the correction territory it first entered during the October market rout.

The S&P 500 tech sector stumbled into correction territory, dropping 2% to 2,726.22 as financials tanked, led by Goldman Sachs. Goldman shares posted their biggest drop in seven years after news broke that Malaysia’s finance minister is demanding a refund of fees paid to Goldman for its work in scandal-plagued state investment fund 1MDB.

Analysts blamed the new rout and weak investor sentiment on a sharp decline in Apple shares; a rise in the U.S. dollar and perssistent worries about global trade, especially a ramped-up U.S. trade war.

The major indices hit their lows of the day in late-afternoon trading media reported the White House had circulated a draft report on auto tariffs that plans to impose a 25% tax on all luxury cars imported into the U.S. Shares of General Motors turned negative following the report.

Apple led the rout in tech, its shares falling by 5% after Lumentum Holdings, which makes technology for the iPhone’s face-recognition feature, cut its outlook for its fiscal second quarter in 2019. Lumentum CEO Alan Lowe said one of its largest customers (Apple) asked the company to “materially reduce shipments” for its products. Shares of Lumentum plunged 33 percent at the news.

The S&P 500 tech sector is down more than 10 percent from its 52-week high. Nearly 70 percent of the stocks in the sector are in a correction. One analyst said the FAANG trade is dead and the market is struggling to find a replacement.

Article – All Rights Reserved.
Provided by FeedSyndicate

Continue Reading

Trending