How long will the market volatility last?
FBN’s Lauren Simonetti and Wall Street Journal assistant editorial page editor James Freeman on the market volatility, the October jobs report and Apple’s fourth-quarter earnings report.
Equity futures may continue the decline seen in Friday’s session which was sparked by a disappointing outlook from Apple.
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Dow Jones futures were lower by 0.34 percent. The S&P 500 slipped 0.31 percent and the Nasdaq Composite was off 0.26 percent.
The United States is putting oil and financial sanctions against Iran back in effect on Monday.
The move is to curb Iran’s missile and nuclear programs and counter its growing military and political influence in the Middle East.
The move puts back in place U.S. sanctions that were lifted under a 2015 nuclear deal negotiated by the administration of President Obama. They will also add 300 new designations in Iran’s oil, shipping, insurance and banking sectors.
And while earnings season is fast winding down, some big names will be posting their July-September results this week.
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Among them are 70 companies in the S&P 500, or about 14% of the benchmark index, including one Dow name: Disney.
We’ll also hear from a slew of other media companies including 21st Century Fox, News Corp., Dish Network and Sinclair Broadcasting to name a few.
On the economic calendar, investors will be studying the October report on the services sector with the ISM non-manufacturing report.
Stocks trimmed losses late Friday following President Trump’s remarks that indicated the U.S. is closer to a deal with China.
“We have had very good discussions with China….they very much want to make a deal” Trump told reporters. Trump is set to meet with China’s President Xi Jinping at the G20 meeting in Argentina in late November according to officials.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 25270.83 | -109.91 | -0.43% |
| SP500 | S&P 500 | 2723.06 | -17.31 | -0.63% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7356.9942 | -77.06 | -1.04% |
The Dow Jones Industrial Average finished down 109.91 points coming back from a 300 point drop earlier in the session. The S&P 500 lost 0.6 percent or 17.31 points while the Nasdaq got hit the hardest falling over 1 percent or 77.06 points, led by a selloff in Apple shares following a disappointing forecast.
Apple, the world’s most valuable company, dropped sharply after the forecast for the key holiday selling season fell short of some expectations and shares fell around 7 percent. However, profit and revenue topped estimates. Shares of the maker of iPhones and iPads is now in a correction, falling 10 percent from its highs.
Outside of global politics, the U.S. economy remains on solid footing with the addition of 250,000 jobs in October, with the 3.7 percent unemployment rate holding at the lowest level since 1969. Wages also rose 3.1 percent the best gain since the recession.
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In Asian markets on Monday, China’s Shanghai Composite index was down 1 percent.
Hong Kong’s Hang Seng Index was down 2.65 percent.
Japan’s Nikkei ended the day sinking 1.5 percent.
In Europe, London’s FTSE opened down 0.1 percent, Germany’s DAX was flat and France’s CAC was also flat.
