Brexit deal to blame for US stock market slide?
Seaport Securities Teddy Weisberg, Bankrate.com senior economist Mark Hamrick and Ambrosino Brothers’ Todd Colvin on the current state of the U.S. stock market and how the Brexit agreement may be affecting the markets.
Equity futures are pointing to gains following a rollercoaster session on Wall Street.
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However, stock futures have cut their gains in half on headlines that the UK’s Brexit minister has resigned. Stocks rebounded in the last session from session lows on Wednesday after Therese May’s cabinet approved a draft Brexit deal.
Dow Jones futures were rising by 0.25 percent. The S&P 500 added 0.29 percent and the Nasdaq Composite was up 0.55 percent.
Retail will be a focus with monthly sales data plus corporate earnings on the docket.
The earnings parade will have a direct focus on retail. Dow component Walmart will kick off Thursday’s reports, with the discount retailing giant reporting ahead of the opening bell along with department store JC Penney. Two more retailers – Nordstrom and Williams-Sonoma – will report after the closing bell.
It will be a very busy data on the economic front. Besides the weekly look at jobless claims, investors will also get the latest on retail sales, import prices as well as a check on the health of manufacturing in both the New York and Mid-Atlantic regions.
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| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 25080.5 | -205.99 | -0.81% |
| SP500 | S&P 500 | 2701.58 | -20.60 | -0.76% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7136.3925 | -64.48 | -0.90% |
It was another wild ride for U.S. equities on Wednesday as the Dow Jones Industrial Average clawed back from a loss of about 350 points, finishing the session down 205.99.
Apple shares, nearing a bear market, fell nearly 3 percent, dragging the Nasdaq Composite down 64.48 points or nearly 1 percent. As for the broader S&P, financials such as JPMorgan and Goldman Sachs dipped, after Rep. Maxine Waters [D-CA] said she would likely end President Trump’s rollback of regulations for financial institutions as she prepares to become Chair of the House Financial Services Committee following the midterm election swing which left Democrats in control of the house.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| AAPL | APPLE INC. | 186.80 | -5.43 | -2.82% |
| GE | GENERAL ELECTRIC COMPANY | 8.32 | -0.29 | -3.37% |
| M | MACY’S INC. | 33.22 | -2.57 | -7.18% |
General Electric tumbled another 3 percent as investors weighed an offering of Baker Hughes, which is majority owned by GE. Concerns continue to mount over the industrial company’s debt levels and the urgency to sell assets.
On the earnings front, Macy’s said its sales and profit, as well as same-store sales, surged in the third quarter on both strong digital revenue and improved brick-and-mortar performance.
The company, which also boosted its earnings per share (EPS) outlook by 15 cents, reported net sales of $5.4 billion, up from $5.28 billion in the year-earlier quarter, and EPS of 27 cents, up from 21 cents. Still, the stock lost ground.
In Asian market trading on Thursday, China’s Shanghai Composite gained 0.9 percent.
Hong Kong’s Hang Seng rose 0.8 percent.
Japan’s Nikkei finished the day down 0.2 percent.
In Europe, London’s FTSE opened higher by 0.3 percent, Germany’s DAX gained 0.4 percent and France’s CAC added 0.6 percent.
FOX Business’ Leia Klingel contributed to this report.
