Markets Right Now: Stocks move solidly higher on Wall Street
Apr 04 2018
Ten of the 11 stock sectors closed in correction territory Monday. Coca-Cola climbed 1.8 per cent and Johnson & Johnson added 2 per cent. The Dow Jones Industrial Average fell 2.4% while the S&P 500 was down 2.6%.
Wall Street's main indexes were slightly higher in volatile trading on Tuesday, supported by gains in financials, while technology stocks came under pressure again, Reuters reported.
Trade war fears and a presidential attack on Amazon had rocked Wall Street on Monday. But investors see a bigger fight looming over U.S. President Donald Trump's approval of possible higher duties on $50 billion of Chinese goods in response to complaints Beijing steals or pressures foreign companies to hand over technology.
China raised import duties on a $3 billion list of US goods in response to a new USA tariffs on imported steel and aluminum. The Nasdaq is in the best shape, about 3% above the 200-day.
Elsewhere, the euro was flat at $1.23 while the dollar rose 0.3 per cent to 106.23 yen.
After a month of public negotiations between the USA and several other countries, Monday marked the first time another country has placed tariffs on US goods in response to the Trump administration's recent trade sanctions.
Advancing issues outnumbered decliners on the NYSE for a 3.08-to-1 ratio and for a 3.18-to-1 on the Nasdaq.
But following revelations that Facebook data wound up in the hands of a private company without the full knowledge of users, all the FAANGs are facing the threat of a regulatory backlash.
The first trading day of the second quarter began with a broad selloff concentrated in the technology and consumer discretionary sectors, as losses by Amazon.com (AMZN.O), Tesla (TSLA.O) and Microsoft (MSFT.O), among others, took center stage from retaliatory trade measures China unveiled on Sunday.
Some tech superstars are confronting their own problems. The company said Friday, after the markets closed, that a recent fatal crash of one of its cars involved an activated Autopilot.
US technology companies are in the spotlight, notably Amazon, which posted hefty losses of around 5 per cent Monday after Trump again voiced his concerns about the company on Twitter. Much of Trump's criticism has come after unfavorable reporting in The Washington Post, which is owned by Amazon founder Jeff Bezos but is a separate company from Amazon.
Big-name tech companies like Microsoft fell more than the rest of the market Monday.
"And we're in a bull market", said Cote.
Politics dominated the concerns of the survey respondents. Only 20 per cent of respondents indicated they were bearish or very bearish.
Investors will be able to buy and sell shares in the Swedish music streaming service Spotify in the New York Stock Exchange's first-ever direct floor listing. Despite the market-wide misgivings on display Monday, many analysts are upbeat about the prospects for the money-losing Swedish music giant.