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Markets closed mostly lower on Tuesday after reports surfaced that trade talks between the United States and China had hit a rough patch. Following this, the three major benchmarks pared early gains. The Nasdaq emerged as the only major benchmark to end in the green. Meanwhile, Fed’s two-day policy meeting began on Tuesday.
The Dow Jones Industrial Average (DJI) decreased 0.1%, to close at 25,887.38. The S&P 500 decreased 0.01% to close at 2,832.57. The tech-laden Nasdaq Composite Index closed at 7,723.95, gaining 0.1%. The fear-gauge CBOE Volatility Index (VIX) increased 3% to close at 13.49. Decliners outnumbered advancers on the NYSE by a 1.28-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow declined 26.7 points to end in negative territory, snapping its four-session streak of gains. Shares of Apple (AAPL - Free Report) declined 0.9% and was the biggest drag on the 30-stock index.
The S&P 500 shed 0.4 points to also end in the red. Of the 11 major sectors of the S&P 500, eight ended in the negative territory, with utilities and financials leading the laggards. The Financial Select Sector SPDR ETF (XLF) and Utilities Select Sector SPDR ETF (XLU) decreased 0.8% and 1.1%, respectively on Tuesday.
U.S. – China Trade Talks Keep Investors on Tenterhooks
Despite President Donald Trump’s reassuring comments on Mar 19 that trade talks with China were “going very well,” a report published by Bloomberg weighed on investor sentiment. The report stated that officials from China reneged on fixing the country’s intellectual property regulations because they did not receive assurances from the United States regarding the lifting of import tariffs on Chinese goods.
Reportedly, China also backed off on its promises regarding data protection of pharmaceuticals, improvement of patent linkages as well as data-service problems.
Meanwhile, the Wall Street Journal reported that talks between both the countries were in “final stages” and that U.S. Representative Robert Lighthizer and Secretary of Treasury Steven Mnuchin would be visiting Beijing the next week. Overall, such developments turned investors jittery and led to broad-based losses for the markets.
Fed’s Two-Day Meeting in Focus
Investors awaited the outcome of Federal Reserve’s two-day meeting which kicked off on Tuesday. Fed officials are expected to announce the future path of rate hikes on Wednesday after the meeting ends. Experts largely expect the Fed to hold interest rates steady. The CME FedWatch predicts a 98.7% chance of interest rates to remain flat after the meeting.
Investors keenly await any announcements related to the future of its balance-sheet unwinding program this year. Further, market watchers will also focus on Fed Chairman Jerome Powell’s comments at the press conference after the meeting. Investors will also focus on interest-rate projections provided by Fed’s policymakers in the dot plot.
Economic Data
On the economic data front, the U.S. Census Bureau reported that U.S. factory orders for the month of January increased 0.1%, below the consensus estimate of 0.2%.
FedEx Corporation (FDX - Free Report) reported disappointing results in the third quarter of fiscal 2019 (ended Feb 28, 2019). (Read More)
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Stock Market News For Mar 20, 2019
Markets closed mostly lower on Tuesday after reports surfaced that trade talks between the United States and China had hit a rough patch. Following this, the three major benchmarks pared early gains. The Nasdaq emerged as the only major benchmark to end in the green. Meanwhile, Fed’s two-day policy meeting began on Tuesday.
The Dow Jones Industrial Average (DJI) decreased 0.1%, to close at 25,887.38. The S&P 500 decreased 0.01% to close at 2,832.57. The tech-laden Nasdaq Composite Index closed at 7,723.95, gaining 0.1%. The fear-gauge CBOE Volatility Index (VIX) increased 3% to close at 13.49. Decliners outnumbered advancers on the NYSE by a 1.28-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored declining issues.
How Did the Benchmarks Perform?
The Dow declined 26.7 points to end in negative territory, snapping its four-session streak of gains. Shares of Apple (AAPL - Free Report) declined 0.9% and was the biggest drag on the 30-stock index.
The S&P 500 shed 0.4 points to also end in the red. Of the 11 major sectors of the S&P 500, eight ended in the negative territory, with utilities and financials leading the laggards. The Financial Select Sector SPDR ETF (XLF) and Utilities Select Sector SPDR ETF (XLU) decreased 0.8% and 1.1%, respectively on Tuesday.
Meanwhile, the Nasdaq increased 9.5 points to close in positive territory. Gains for the tech-laden index were powered by a 1.1% rally in the shares of Amazon (AMZN - Free Report) . Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
U.S. – China Trade Talks Keep Investors on Tenterhooks
Despite President Donald Trump’s reassuring comments on Mar 19 that trade talks with China were “going very well,” a report published by Bloomberg weighed on investor sentiment. The report stated that officials from China reneged on fixing the country’s intellectual property regulations because they did not receive assurances from the United States regarding the lifting of import tariffs on Chinese goods.
Reportedly, China also backed off on its promises regarding data protection of pharmaceuticals, improvement of patent linkages as well as data-service problems.
Meanwhile, the Wall Street Journal reported that talks between both the countries were in “final stages” and that U.S. Representative Robert Lighthizer and Secretary of Treasury Steven Mnuchin would be visiting Beijing the next week. Overall, such developments turned investors jittery and led to broad-based losses for the markets.
Fed’s Two-Day Meeting in Focus
Investors awaited the outcome of Federal Reserve’s two-day meeting which kicked off on Tuesday. Fed officials are expected to announce the future path of rate hikes on Wednesday after the meeting ends. Experts largely expect the Fed to hold interest rates steady. The CME FedWatch predicts a 98.7% chance of interest rates to remain flat after the meeting.
Investors keenly await any announcements related to the future of its balance-sheet unwinding program this year. Further, market watchers will also focus on Fed Chairman Jerome Powell’s comments at the press conference after the meeting. Investors will also focus on interest-rate projections provided by Fed’s policymakers in the dot plot.
Economic Data
On the economic data front, the U.S. Census Bureau reported that U.S. factory orders for the month of January increased 0.1%, below the consensus estimate of 0.2%.
Stocks That Made Headlines
FedEx Misses on Q3 Earnings, Trims FY19 EPS Guidance
FedEx Corporation (FDX - Free Report) reported disappointing results in the third quarter of fiscal 2019 (ended Feb 28, 2019). (Read More)
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>