US Stock Market News
Investors have been worried about what Federal Reserve Chairman Powell opines on the performance and state of the economy of the U.S. The unfolding of the negotiations of the U.S and China trade war along with economic data took the center stage in today the US stock market news update. Powell has confirmed on current economic scenario and outlook of the economic situations being favorable while it may see some signals which might be conflicting and crosscurrent signals.
As Powell discussed, recent fall in energy prices has led inflation downwards to levels much below the targets set by the FOMC at 2%.
NYSE update today
The highlight of the day was a technical glitch at the Chicago Mercantile Exchange (CME) which forced the trading to be halted for 3 hours and no buying and selling of contracts for futures, commodities and U.S treasuries.
The Commerce Department said the goods trade gap jumped 12.8 % to $79.5 billion in December as slowing global demand and a strong dollar weighed on exports. Exports declined 2.8 % and imports rose 2.4 %.
The DJIA and S&P 500 fell for the 2nd time in a row due to key testimonies in in the U.S – China trade talks, Federal Reserve monetary policies and a lot of other geopolitical issues. The index of 30-stock Dow slipped 72.82 points to close at 25,985.16 on account of UnitedHealth’s lower than expected performance. This was followed by the S&P 500’s fall of less than 0.1% to 2,792.38. There was a pulling down led by the communications services and health care sectors. The Nasdaq Composite managed to carve out a small gain, closing nearly 0.1% higher at 7,554.51.
The S&P 500 constituent – tech sector closed 0.1% lower, and held strong its 12-day winning streak. Both Facebook and Alphabet were down. Along with this, the VanEck Vectors Semiconductor ETF (SMH) fell 1%. Micron was one of the biggest loser in the SMH sector, and fell by more than 3%.
The trades fell as U.S Trade Representative Robert Lighthizer indicated that the deal still had a lot of work to be done and just a purchase commitment by the Chinese was not enough. The deal needed more strengthening and specifics to be included with a matter of reinforcement.
Trade setup for Thursday
The U.S economic growth for Q4 2018 will be reported today. This is an important benchmark.
Another landmark, though not may not be an economically important event is the 2nd day meet of President Trump and President Kim Jung -UNs Summit in Vietnam. A lot of other data comes out like U.S Initial Jobless Claims, Counting Claims, Gross Domestic Product Annualized (for Quarter on Quarter) information, the Gross Domestic Product Price Index for Q4, Personal Consumption (for Q4), USD Core PCE ( QoQ).
Also, Federal Reserve’s Bostic will Speak on the Economic and Housing market. Chicago Purchasing Manager information is also available. EIA working Gas Implied Flow report will be out, Kansa City Fed Manufacturing Activity will be seen.