Febrero 24, 2018

USA stocks close with solid gains after volatile session

10 Febrero 2018, 07:07 | Dolorita Barahona

Stock markets continue to fall amid interest rate hike fears

A trader works on the floor of the New York Stock Exchange in New York Feb. 6 2018

Stocks have failed to hold a strong rebound since Friday, when a better-than-expected report on wages added to worries about higher United States inflation.

Volatility surged across the European market, with the gauge of STOXX 50 volatility posting its biggest one-day gain ever. The percentage gain of 2.3% is the biggest since January 2016. The VIX, an index that measures traders' expectations of market volatility, was coming back with a vengeance.

"The market has become a much more risky place", billionaire Carl Icahn told CNBC.

USA crude oil dropped 1 percent to settle at $61.15 a barrel, while Brent fell 1.1 percent to $64.81. The S&P 500 ended 6.2 percent below its January 26 peak.

"The U.S. has been ridiculously bloated by the euphoria of Trump's tax cut and deregulation", he said. "Sometimes the market does get disconnected from economic reality to the upside and it needs to get in line", said Jack Ablin, chief investment officer at Harris Bank.

The market uptrend remains under pressure. High frequency trading and buildup in volatility trading played a role in the drop, especially in the late afternoon when the Dow dropped 6% in just a few minutes. Neither index has closed in a correction in two years.

The Dow Jones industrials are down 500 points, extending the market's losses. It's about 6% off its all-time high. Britain's FTSE 100 fell 1.5 percent and the French CAC 40 lost 2 percent. I think the fundamentals are quite strong, ' Mnuchin told lawmakers during a scheduled hearing on Capitol Hill.

Rick Meckler, president of investment firm LibertyView Capital Management, said: "It's over in terms of the severe down move we've seen but reminds us that we're kind of in an aftershock phase". The tremors on Wall Street spread around the globe.

"The stock market is not the economy: It has no direct effect on GDP, the availability of jobs, and the like". Asia's bid for a recovery faltered late in that session, with the MSCI Asia Pacific Index nearly completely erasing a gain of as much as 2.4 percent. That combination usually carries stocks higher.

U.S. BUDGET BATTLE: Uncertainty overshadowed the fitful market recovery as Senate leaders brokered a long-sought budget agreement Wednesday that would bring the Pentagon and domestic programs an extra $300 billion over the next two years. On Tuesday, stocks opened sharply lower before recovering slightly and rebounding in late trading.

"While today would be crucial in seeing if the bulls can wrestle back control for Asian markets, it does appear that we have finally entered a period of increased volatility", says Jingyi Pan, market strategist at IG in Singapore.

This market selling began days ago due to fears of higher inflation, stronger wages, and a rapid rise in long-term interest rates, with the 10-year Treasury yield rising from 2.40% to 2.85% in a single day. But it receded significantly on Tuesday, to 2.79%. Exiting Fed Chairwoman Janet Yellen did suggest stock prices were high. Last Friday, official USA data showed rising wages, renewing concern about inflation and rate hikes by the Federal Reserve.

A key is to build what he calls an "all-weather portfolio" - a diversified basket of investments in which some parts go up to ease the pain when stocks go down - instead of trying to time the market, Schlafer said. Futures markets suggested another, but more moderate drop, in the US, with the Dow and S&P 500 futures down 0.8 percent and 0.2 percent.

Otras noticias

Tendencias Ahora

PadMan Star Radhika Apte Shares Her Period Story
At one point, Gayatri even asks him, "What kind of a man has his life trapped between a woman's legs?" before walking out on him. There is absolutely no doubt that the subject and the intention of the film is applause-worthy.

Pence on Porter: WH has acknowledged 'they could have handled it better'
The FBI was made aware of the allegations months ago, after Porter applied and was not cleared for a permanent security clearance. Trump also has been quizzing those around him about their opinion of Mulvaney in recent weeks, aides and associates tell CNN .

Art, Life and God Play Out in New Film
In reality, Eastwood was comfortable taking the major gamble of casting three unknown quantities in his lead roles. To say this is all God, Guns, and Country would be an accurate statement, and Eastwood doesn't hide it at all.

Tesla To Reveal Model Y SUV Plans Later This Year
The company expects to deliver about 100,000 Model S sedans and Model X sport utility vehicles, in line with last year's 101,312. A first test flight could take place in 2019 with orbital tests in 2020 and the delivery of the first cargo to Mars in 2022.

Kohli hits 34th ODI Hundred, makes it 3-0 for India
I think AB de Villiers being AB de Villiers is a very risky player. "When AB talks you listen because it's always helpful". Kuldeep Yadav has formed a magnificent combination with Yuzvendra Chahal in the first three games of the one-day series.

Kim Jong Un's sister arrives in South Korea
Trumps number two has talked tough as he arrived in the South, pledging to ramp up "maximum pressure" after the Olympics . After a chaotic year of nuclear war threats and missile tests from the North, it was a striking visual moment.

Trump signs spending bill into law
Trey Gowdy of SC , who helped draft the GOP memo, have said it shouldn't be used to undermine the special counsel. Senate leaders had celebrated the budget deal as a sign they had left behind some of their chronic dysfunction.

Trump Signs Budget Agreement, Ending US Government Shutdown
Hours after the midnight deadline, the Senate voted 71-28 to approve a two-year budget deal that would end the shutdown . If passed early Friday, the bill would then head to the House of Representatives .

President Trump Signs Budget Deal, Ending Federal Government Shutdown
Paul, a senator from Kentucky, said the overall budget bill that includes the stopgap measure would "loot the Treasury". Trump, who said earlier this week he would "love" a government shutdown, was expected to sign the measure into law.

Congress Reaches LAST-MINUTE DEAL to Avoid Second SCHUMER SHUTDOWN
The bill McConnell chose was unrelated to immigration, after he had said he planned to use a separate bill for the debate. Non-defense spending will increase by 63 billion dollars for fiscal 2018 and 68 billion dollars for fiscal 2019.