Market Confused with Unstable Trade News

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as market confused with unstable trade news. 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:

US futures point to slightly lower open

U.S. stock index futures were slightly lower Thursday morning.

The S&P 500 (SPY) dropped -0.16% today. Sector decliners led advancers 8 to 3 as shown below in the sector graph. Real estate (XLRE) led decliners down with a loss of -1.34%. Consumer discretionary (XLY), consumer staples (XLP), financials (XLF), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) each suffered minor losses of less than 1%. Energy (XLE) led advancers with a +1.64% gain. Communication services (XLC) and utilities (XLU) each enjoyed small gains of less than 1%.

The Dow Jones index finished in the red by -54 points (-0.20%) to close at 27,766. The Nasdaq gave back -20 points (-0.24%) to settle at 8,506.

Market Confused with Unstable Trade News

Stocks ended in negative territory Thursday as continued up and down trade news leave the market guessing.

“The U.S. and China don’t know what they want to do on a trade deal,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. “Every single day it’s something different. They’re close to a deal. Then they’re not close to a deal.”

“As long as these rumors go back and forth, how will the market know what to do? It’s confusing,” Frederick said.

During a phone call thought to have been made late last week, Chinese Vice Premier Liu He invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to Beijing to sit down for further negotiations, according to a report from The Wall Street Journal.

It was not clear whether U.S. negotiators had accepted Liu’s invitation. However, the Journal’s report said that U.S. trade officials were willing to meet with their Chinese counterparts.  Meanwhile, the South China Morning Post said both countries are on the “doorstep” of reaching a deal, citing a source close to the Trump administration.

The reports come after U.S. legislation on Hong Kong had threatened to derail trade discussions between the world’s two largest economies. On Wednesday, the U.S. House of Representatives passed a bill intended to support protesters in Hong Kong. It prompted Beijing to accuse the U.S. of interfering in domestic affairs. Sen. Marco Rubio, R-FL, told CNBC’s “Squawk Box” he hears President Donald Trump will sign the bill.

Key Takeaway…

I took the following CNBC screenshot today regarding 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

Market Confused with Unstable Trade News

S&P 500 (SPY)

Market Confused with Unstable Trade News

Communication Services (XLC)

Market Confused with Unstable Trade News

Consumer Discretionary (XLY)

Market Confused with Unstable Trade News

Consumer Staples (XLP)

Market Confused with Unstable Trade News

Energy (XLE)

Market Confused with Unstable Trade News

Financials (XLF)

Market Confused with Unstable Trade News

Real Estate (XLRE)

Market Confused with Unstable Trade News

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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