Italian Political Drama Scares Equities Toward Sell Off

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after Italian political drama scares equities toward sell off. 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 is set to drop 200 points at the open as worries about Italy roil world markets

Michael Nagle | Bloomberg | Getty Images The moves in pre-market trade came as markets overseas showed a relatively negative picture. In Asia, stocks finished the session in the red, as political turmoil in Italy and a drop in crude futures weighed on sentiment.

The S&P 500 (SPY) fell back -1.16% today. Sector decliners led advancers 8 to 2 as shown below in the sector graph. Financials (XLF) led decliners down with a -3.34% loss. Other sectors that dropped more than 1% included healthcare (XLV), industrials (XLI) and materials (XLB). Consumer discretionary (XLY), consumer staples (XLP), energy (XLE) and technology (XLK) each had minor declines of less than 1%. Real estate (XLRE) and utilities (XLU) each had minor gains of less than 1%.

The Dow Jones index tumbled 391 points (-1.58%) to close at 24,361. The Nasdaq gave back 37 points (-0.50%) to settle at 7,396.

Italian Political Drama Scares Equities Toward Sell Off

Stocks back pedaled today as the Italian political drama pushed a sell off led by financials. For a better understand of why the markets are so scared of the Italian political drama, I found this informative article:

Here’s why markets are so scared of the latest Italian political drama

Alberto Pizzoli | AFP | Getty Images Political uncertainty in Italy has unhinged world markets, raising the specter of a euro crisis that could ripple across the global economy and even force the Federal Reserve to slow its rate hiking plans.

The risk off trade today saw the 10 year bond yield fall to 2.77% as investors flocked into treasuries. As investors buy treasuries, the interest rate for those treasuries fall.

Key Takeaway…

The following is an interview with Art Cashin, a veteran NYSE trader on how the Italian political drama is affecting equities today:

Big concern Italian banks: Cashin

UBS’s Art Cashin; Simeon Hyman, Proshares Advisors; and CNBC’s Rick Santelli, discuss the Italian ‘contagion’ and why the Dow was down more than 505 points at one point today.

Notable S&P movers…

  • JPM -4.27%
  • BRK.B -2.20%
  • JNJ -1.70%
  • GOOGL -1.48%
  • DIS -2.46%
  • MCD -1.59%
  • SBUX -1.19%
  • UNH -1.13%
  • ABBV -1.59%
  • BAC -3.98%
  • MS -5.75%
  • BA -2.11%
  • V -1.21%

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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5/29/18

S&P 500 Sector Graph

Italian Political Drama Scares Equities Toward Sell Off

S&P 500 (SPY)

Italian Political Drama Scares Equities Toward Sell Off

Consumer Discretionary (XLY)

Italian Political Drama Scares Equities Toward Sell Off

Consumer Staples (XLP)

Italian Political Drama Scares Equities Toward Sell Off

Energy (XLE)

Italian Political Drama Scares Equities Toward Sell Off

Financials (XLF)

Italian Political Drama Scares Equities Toward Sell Off

Real Estate (XLRE)

Italian Political Drama Scares Equities Toward Sell Off

Healthcare (XLV)

Italian Political Drama Scares Equities Toward Sell Off

Industrials (XLI)

Italian Political Drama Scares Equities Toward Sell Off

Materials (XLB)

Italian Political Drama Scares Equities Toward Sell Off

Technology (XLK)

Italian Political Drama Scares Equities Toward Sell Off

Utilities (XLU)

Italian Political Drama Scares Equities Toward Sell Off

S&P 500 Sector Heat Map

Italian Political Drama Scares Equities Toward Sell Off

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