US Stock Markets Ended August 9, 2019

The S&P 500 index declined 40 basis points last week which appeared mild following the previous week's -3.07% return, the index's worst week of 2019. However, last week's trading wasn't mild as volatility showed a swing of approximately 4% from the week's low to the week's high. The index had its worst day of the year on Monday after declining 2.97% on fears of the trade war escalating further. After U.S. President Trump announced more tariffs on Chinese goods, China responded by freezing purchases of U.S. agricultural products and appearing to allow their currency to devalue, signaling they would respond to any further U.S. tariffs. Equities rallied back throughout the week as the index clawed back most of Monday's loss. U.S. initial jobless claims of 209K were lower than the consensus estimate of 215K and the previous week's claims of 215K. Crude oil had a volatile trading week with over a 9% drop from high to low but rallied back the last two days to shrink the week's loss. Crude oil declined 2.08% last week and closed at $54.50 per barrel. Crude oil refiner Marathon Petroleum Corp declined 9.75% and exploration & production companies like Apache Corp and Occidental Petroleum Corp, declined 9.18% and 7.91% respectively, as energy stocks came under pressure becoming the worst performing sector of the week. The worst performing stock in the S&P 500 Index last week was biopharmaceutical company Nektar Therapeutics. The company declined 32.71% last week as issues with the manufacturing of their experimental cancer treatment were exposed in their earnings release. DXC Technology Company declined 30.47% last Friday after reporting earnings and lowering their guidance, inducing cuts in ratings and price targets by some analysts. Semiconductor manufacturer AMD Micro Device Inc. was the best performing stock in the index. The stock returned 16.13% last week after the company revealed their new server processor, claiming it has better performance and is cheaper than the competition. Earnings announcements expected this week include Walmart Inc., Cisco Systems Inc., NVIDIA Corp, Deere & Company, Applied Materials Inc. and many others.
Posted on Tuesday, August 13, 2019 @ 7:13 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.