US Stock Markets Ended September 21, 2018
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Despite the S&P 500 index closing lower on Monday, it finished Thursday at all-time high before dipping slightly lower Friday. Equities were led by the financial and material sectors, both had tailwinds of rising interest rates. Conversely, higher bond yields stunted the real estate and utility sectors, both underperformed the broader market. President Trump decided to move forward with an additional 10% tariff on $200b worth of Chinese imports starting Monday September 24th. The White House had discussed moving the new tariffs up to 25% but it appears that has been delayed until next year in an effort to get the Chinese back to the negotiating table. Red Hat Inc., an open source software provider, fell over 6.5% after announcing quarterly revenue below expectations, it was the worst performing company in the S&P 500 index last week. The poor quarterly results were likely due to a shift from their legacy on-site infrastructure business, to their main growth driver called OpenShift which had some near-term headwinds. MGM Resorts International announced plans to acquire the operations of the Hard Rock Rocksino which buoyed the stock nearly 3% last week. Under Armor Inc. announced plans to cut 400 jobs as part of the company's overall restructuring, the announcement rallied their shares over 6% for the week. ADT Inc. rallied over 7% after they announced a deal with Amazon.Com Inc. to integrate security services with their new Alexa Guard product. Adobe Systems Inc. fell over 2% Friday, after equity markets didn't seem to like the company purchasing Marketo from Vista Equity Partners for $4.75b. Overall economic fundamentals remain strong, corporate profits robust and new highs in sight. The S&P 500 is projected to grow earnings by 5.4% next quarter and 21.8% for 2018.   

Posted on Monday, September 24, 2018 @ 8:17 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.