Bear Market Calls Pressure Stocks Lower

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after bear market calls pressure stocks lower. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures higher after China fixes yuan at stronger-than-expected level

U.S. stock index futures were higher Monday morning, after China’s central bank set the official midpoint reference for the yuan at a stronger-than-expected level. At around 02:30 a.m. ET, Dow futures rose 46 points, indicating a positive open of more than 55 points. Futures on the S&P and Nasdaq were both slightly higher.

The S&P 500 (SPY) dropped -1.23% today. All 11 sectors finished in the red. Communication services (XLC), consumer discretionary (XLY), energy (XLE), financials (XLF), industrials (XLI), materials (XLB) and technology led the market lower, each losing more than 1%. Consumer staples (XLP), healthcare (XLV), real estate (XLRE) and utilities (XLU) each saw minor losses of less than 1%.

The Dow Jones index sank -389 points (-1.48%) to close at 25,897. The Nasdaq dove -95 points (-1.20%) to settle at 7,863.

Bear Market Calls Pressure Stocks Lower

Stocks continued their late summer decline Monday as bond yields tumbled close to 2016 lows and a couple of bear market calls rattled investors. The 10 year bond yield fell to 1.63%.

“The bear is alive and kicking,” Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, said in a note on Monday. “We think the failed breakout last week for the S&P 500 confirms we are still mired in a cyclical bear market.” Goldman Sachs lowered its fourth-quarter growth forecast by 20 basis points to 1.8% as the firm no longer expects a trade deal before the 2020 election. Bank of America on Monday raised chance of a recession to 1-in-3 in the next 12 months as the firm believes many economic indicators are “flashing yellow.”

Also hurting stocks were the intensified Hong Kong protests, which soured investor sentiment already aggravated by the trade dispute between Washington and Beijing. Hong Kong International Airport cancelled all departures for the remainder of the day, citing serious disruptions due to intensifying protests.

Key Takeaways…

I took the following CNBC screenshots today regarding S&P 500 returns for 2019, tough quarter ahead?, energy earnings, industrial earnings, Wall Street worries and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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S&P 500 Sector Graph

Bear Market Calls Pressure Stocks Lower

S&P 500 (SPY)

Bear Market Calls Pressure Stocks Lower

Communication Services (XLC)

Bear Market Calls Pressure Stocks Lower

Consumer Discretionary (XLY)

Bear Market Calls Pressure Stocks Lower

Consumer Staples (XLP)

Bear Market Calls Pressure Stocks Lower

Energy (XLE)

Bear Market Calls Pressure Stocks Lower

Financials (XLF)

Bear Market Calls Pressure Stocks Lower

Real Estate (XLRE)

Bear Market Calls Pressure Stocks Lower

Healthcare (XLV)

Industrials (XLI)

Bear Market Calls Pressure Stocks Lower

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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