Dow wins 120 points, but tech and internet-related shares are washing Nasdaq
Joe Raedle / Getty Images
U.S. Shares were mixed during dinner trading Monday, before an updated political statement from the Federal Reserve and midterm elections that could change the balance of power in Washington.
How did benchmarks work?
Dow Jones Industrial Average
DJIA, + 0.50%
increased 1[ads1]24 points to 25398, a gain of 0.5% and S & P 500
SPX, + 0.19%
increased 5 points to 2.727, an increase of 0.2%. Nasdaq Composite Index
COMP, -1.06%
fell 78 points, or 1% to 7.280.
On Friday, Dow lost 110 points, or 0.4%, eventually 25.270, the S & P 500 index fell 17.31 points, or 0.6% to 2.723.06 and the Nasdaq Composite Index went down 77.06 points, or 1% to 7.356.99.
In the week, both Dow and S & P 500 increased 2.4% and Nasdaq developed 2.7%, its first weekly gain since the end of September.
What ran the market?
Midterm congressional elections, which are expected to see Democrats take control of the House and Republicans, take hold of the Senate, will take place on Tuesday. On Thursday, the Fed ends a two-day police meeting, which is not expected to change prices, but can provide investors with new insights about the pace of upcoming interest rate hikes and the impact of trade disturbances between the US and China on the domestic economy.
On Friday, the markets featured a number of contradictory headlines on the progress of negotiations between Beijing and Washington. Stocks pared loss in late trading Friday after President Donald Trump said progress was made in talks with Chinese leadership. A few hours earlier, his top economic advisor, Larry Kudlow, said that the US and China were far from reaching a trade agreement.
On Monday, China President Xi Jinping promised at a trade show in Shanghai that he should address criticism that trade is "unfair" by reducing its tariffs and opening the economy for more imports.
The Caixin survey of Chinese production slipped to 50.8, marking its lowest reading for more than a year, and backed the idea that the economy of the world's second largest economy has slowed down. A reading of at least 50 indicates better relationships.
Read: How trade negotiations in the US and China are the biggest catalyst for the stock market
Which stocks are in focus?
Shares at Apple Inc.
AAPL, -3.00%
shares were down 3.1% Monday after the iPhone manufacturer's decline of 6.6% on Friday, after to say that it would no longer reveal unit sales of its products to investors, as it has been for over ten years.
Under Armor Inc .
The UAA, + 1.27%
share is trading up 2.2% after the analysts at Stifel Nicolaus upgraded its $ 30 target price from $ 27.
Shares at ] Sysco Corp. .
SYY, -9.79%
falls more than 10% Monday morning after the company has missed earnings estimates for the first quarter of 2019. The stock is at a pace for the most per cent decline since October 19, 1987 when it fell 25.86%, according to Dow Jones Market Data.
Cabot Oil & Gas Corp. .,
COG, + 5.50%
rose 5.9% and EQT Corp. . advanced more than 7.3% as natural gas prices increased sharply on forecasts that turned out to be colder weather than previously assumed over much of the US later this month. December natural gas futures
NGZ18, + 8.10%
increased by 7.5% and hit a 9 month high.
Stocks of Home Improvement Dealer Lowes Companies
LOW, -0.03%
was up 4% after the company said it would close 20 underperforming stocks in the US and 31 stores in Canada as a part of a strategic reassessment.
Read: These Lowes stores close the next three months
Ferrari NV
RACE, -1.66%
stock fell 1.7% after Monday morning announcement of higher earnings in the third quarter.
What data is in focus
Markitservices industry index came in at 54.8 in October, against expectations of 54.7, according to FactSet.
The ISM services index fell to 60.3 in October, down from 61.6 in September, but hits 58.6 average estimates of economists surveyed by MarketWatch.
What do analysts say?
"Investors face a wall of concern," which has to climb for stocks to resume September, told Peter Bye, portfolio manager at UBS Asset Management MarketWatch. Bye said that slowing growth in China and Europe, coupled with rising interest rates at home, makes traders nervous about how much longer the current economic expansion may last.
"You have increasing evidence of pressure on technology leaders" like Google and Facebook, as investors have expected to run the bull market, Bye warned. "They face several new headwinds," he said as a new digital tax abroad to bipartisan's interest in regulating the US technology industry, he said.
How do other markets trade?
Asian stock markets were down the board on Monday, while European stocks
SXXP, -0.16%
was also under pressure as investors focused on the effects of global trade tensions.
Oil futures
DXY, + 0.00%
edged up on Monday, when sanctions against Iran came into force. The dollar fell a modest 0.1% while gold prices
GCZ8, -0.11%
was flat.
Provides critical information for USA's trading day. Subscribe to MarketWatch's free need to know newsletters. Sign up here.
