Dow drops by 500 points and all 30 components fall, driven by Apple stock



US stocks fell sharply on Tuesday and prolonged rainfall, which was mainly due to the sale of shares of technology and internet companies. The sharp decline in Targe and Lowe after disappointing profits also contributed to the tone.

Financial markets in the United States will be closed on Thursday for Thanksgiving and early Friday.

How do the scales work?

Dow Jones Industrial Average

DJIA, -2.11%

decreased by 500 points, ie by 2%, to 24 516, and decreased by 596 points, or by 2.3% to the lowest. S & P 500 index

SPX, -1.77%

was down 45 points, or 1.7%, to 2,644, while the Nasdaq Composite Index

NQZ8, -1.93%

was 114 points down to 6.913, down 1.6%.

Dow and S & P 500 grew year-on-year, while Nasdaq was holding a narrow profit in 2018.

Monday's decline has led to the S & P 500 and Dow's worst start on Thanksgiving since 2011, while Nasdaq has recorded its worst start since 2000, according to Dow Jones Market Data.

What does the market control?

American investors are still struggling with doubts about the slowdown in global growth, US-China trade relations, and rising interest rates that can be expected next year. These doubts have gathered to raise concerns that we are nearing the end of the current economic expansion, strategists say.

The technology sector so far has most likely lost this sentiment change. Tech stocks prolonged the downturn, which led to a drop in the market on Monday, with reports from China adding fuel for sale a day after officials in Beijing revealed extensive evidence of the pro-competitive behavior of Korean competitors. According to The Wall Street Journal, investigators in Beijing participated in Samsung Electronics

005930, -1.95%

SK Hynix

000660, -3.30%

of Micron Technology

HIM, -2.54%

Market participants believe that Chinese investigations may intensify annoying business-related issues between China and other major counterparts, including the US

Meantime, Target Corp.. Yippee

TGT, -10,20%

shares declined on Tuesday after a discount retailer reported third-quarter fiscal returns and sales for the same sale that lost expectations. The loser of the retailer also has the potential to pull the shares of its competitors.

What do strategists say?

"Economic data remains strong, but the trend is worsening," said Peter Lazaroff, chief investment officer at Plancorp. He has made the case that the recent turning point in sentiment is due to investors believing that we have already experienced the fastest growth rates for both the US economy and corporate profits.

"Economic conditions are good, but the chances of worsening economic conditions next year or more are much higher than surprises on the rise," Lazaroff said.

At the same time, Lazaroff stressed that volatility levels had only returned to normal levels, while the low volatility that characterized most of today's bull market was lightened. "This kind of price action is extremely normal," he said. "It was strange that in the last few years, investors have made a profit, not realizing any volatility."

Which actions are targeted?

Company shares Apple Inc.

AAPL, -4.23%

dropped by 4.3% and prolonged the losses from the previous session to a 4½ month minimum and threatened to leave the bear market population, which is defined as a decrease of at least 20% from the recent maximum.

Check it out: Ray Dalio says it's just like the 1930s for investors right now.

Company shares Kulicke & Soffa Industries Inc..

KEY, + 8,59%

grew by 10.2% on Tuesday after the semiconductor device maker achieved the expected expected fiscal results for the fourth quarter. The stock's stock declined by about 12% at the start of the deal before these losses turned on Monday morning.

Lowe CosStock

LOW, -5.12%

dropped 5% after domestic retail sales reported third-quarter fiscal returns that exceeded expectations but sales for the same sales that were lacking.

Targets traded by 10.7% less on Tuesday after the retailer reported third-quarter fiscal returns and sales for the same sale as Wall Street estimates.

Cambell Soup Co.

CPB, + 5.77%

Shares rose 5.3% on Tuesday after the third quarter of the profit statement, which showed that the company had overtaken earnings estimates, while the company confirmed its optimistic guidelines for 2019.

Hormel Foods Corp..

HRL, -1.43%

Shares fell 2.3% after missing earnings estimates in the Tuesday report.

Company shares Kohlova Corp.

KSS, -9.59%

accelerating more than 9.5% early, even after the company revealed Wall Street's earnings and profit estimates and increased its year-round 2018 guidelines. Retailer's stock is still up 18.5%.

Company shares Analog Devices, Inc..

ADI, + 3.22%

are on the rise, up 3% after the defeat of analysts' estimates for the fiscal fourth quarter of earnings and income on Tuesday morning's release.

Best Buy Co. Inc..

BBY, + 2.04%

shares rose 1.5% after Tuesday's earnings release, showing that the company has outpaced earnings and earnings estimates.

Company shares L Brands Inc..

LB, -15.22%

dropped by more than 14% after the retailer announced on Monday night that he plans to cut the dividend.

Agilent Technologies Inc..

AND, + 7.28%

shares rose 7.4% on Tuesday after defeating analysts' earnings and revenue estimates in the fourth quarter.

What data do investors follow?

Housing began in October at 1,228 million seasonally adjusted annual rates, while allowances reached 1,263 million, with housing numbers just below consensus estimates, according to a survey by MarketWatch economists. Year-on-year growth in housing origins slowed down continuously in 2018.

Investors are particularly focused on the housing market after unsatisfactory reading of homebuilders' confidence on Monday, which contributed to a decline on Monday.

How are other markets traded?

Stock markets in Asia exchanged lower Tuesday, with Japan Nikkei

NIK, -1.09%

losing 1.1%, Hong Kong's Hang Seng index

HSI, -2.02%

a 2% drop and the Shanghai Composite Index

SHCOMP, -2.13%

a decrease of 2.1%.

European stock exchanges are also traded on Tuesday with Stoxx Europe 600

SXXP, -1.14%

and the German DAX 30

DAX, -1.58%

end the day more than 1%. FTSE 100

UKX, -0,76%

Closed on Wednesday by 0.7%

Futures on oil

CLF9, -6.85%

continued the fight on Tuesday, dropping by more than 5%, while gold

GCZ8, -0.31%

fell by 0.3% and the US dollar

DXY, + 0.71%

is increased by 0.5%.

Providing important information for a trading day in the US. Sign up for free MarketWatch's Need to Know Newsletter. Sign up here.


Source link