Stock Market News: September 30, 2019

Shares rose on Monday as investors continued to follow developments in the US and China.

Here were the key moves in the market, as of 10:21 PM ET:

  • S&P 500 (^ GSPC): + 0.37%, or 10.91 points

  • Dow (^ DJI): + 029 %, or 79.04 points

  • Nasdaq (^ IXIC): + 0.42%, or 33.74 points

  • US crude oil prices (CL = F): -1.07% to $ 55.31 per barrel

  • 10-year yield (^ TNX): +1.4 bps to 1.687%

  • Gold (GC = F): -0.96% to $ 1,499.00 per ounce

On Friday, stocks ended lower amid signs of another ointment in the US-China trade war. Bloomberg reported that the Trump administration considered limiting US investment in China by delisting Chinese companies from US exchanges and dampening Americans' exposure to Chinese assets in public pension funds.

However, the US Treasury Department has since partially rejected the report, writing in a statement that "the administration does not intend to block Chinese companies from listing stocks on US stock exchanges at this time." However, the response did not address other ways of limiting US portfolio flows to China.

Shares of Chinese firms listed on US stock exchanges, including Alibaba (BABA) and Baidu (BIDU), rose in early trade as concerns about their delisting were settled.

High-level talks between the United States and China are set to take place in Washington, DC, in mid-October. Data on the Chinese economy have remained choppy for weeks since the last mid-level talks between the two sides in September, and these reports reflect the impact of the trade war with the United States on the world's second-largest economy.

A new overnight print showed an unexpected increase in activity for China's key manufacturing industry, with domestic consumption helping to offset the weakness in foreign demand.

The private Caixin / Markits industrial buyer's index (PMI) rose to 51.4 in September from 50.4 in August and remained above the neutral level 50 to indicate expansion for another month in a row. The September reading marked the fastest rate of increase since February 2018 for the country's PMI.

But under the heading, the result became more mixed. China's new orders sub-index climbed at the fastest pace since March 2018, while new export orders declined for a fourth consecutive month.

"The upturn in China's manufacturing industry in September benefited mainly from the potential growth in domestic demand," Zhengsheng Zhong, director of CEBM Group macroeconomic analysis, said in a statement. between China and the United States had a significant impact on exports, production costs and business confidence. "

Meanwhile, China's government-issued PMI for Industry rose to 49.8 in September from 49.5 in August, the National Bureau of Statistics said on Monday This represented the fifth consecutive month of contraction in production activity following NBS targets, reflecting the results of the Caixin / Markit survey, production and measurements of new orders, while new export orders remained in contracting territory.

  Traders are working on the floor of the New York Stock Exchange (NYSE) in New York REUTERS / Brendan M cDermid
Traders work on the floor of the New York Stock Exchange (NYSE) in New York. REUTERS / Brendan McDermid

There is a break

Monday marks the final session in both September and the third quarter of the calendar year. As of Friday's close, the S&P 500 and Dow were on track to announce modest gains in both periods, while the Nasdaq fell somewhat marginally.

The third quarter has seen a boom in trade, monetary and policy developments. Both the United States and China added tariffs on each other's goods, before later relieving some of these tensions. The Federal Reserve cut interest rates for the second time this year, and the European Central Bank cut interest rates for the first time in three years, solidifying a global dovish monetary policy tilt. Attacks at the heart of Saudi Arabia's oil infrastructure sent crude oil prices on the rise and set the spectrum for further conflict in the Middle East. And the House Democrats opened an inquiry into President Donald Trump.

These events have triggered staggering stock market volatility, an inversion of a key part of the yield curve for the first time in more than a decade, and steep fluctuations in crude oil prices.

In the midst of events and growing uncertainty about the outlook, September was marked by a significant shift from growth stocks to their securities, or stocks that appear to be undervalued when looking at measures including price / earnings ratios. [19659002] The S&P 500 value of the stock's monthly earnings reached 3.3%, against a mere 0.6% gain in the S&P 500's growth stocks, according to an analysis by DataTrek co-founder Nicholas Colas.

This was primarily driven by the value side of the results of large companies. This is a sector that accounts for 22% of the securities and rose 4.3% for the last month – and Energy, a sector consisting of 7% of the securities and increased by 3.7% over the period.

On the growth side, the technology sector, which accounts for 26% of growth stocks, underperformed and rose only 0.2% for the current month. And the health care system, which accounted for 16% of growth rates, fell 1.4% over the month, Colas said.

"Value gains in September versus growth were more about sectors than" style, "Colas said in a statement Monday." The economy received a boost from higher long-term interest rates. Energy received a bid from Saudi oilfield attacks. Political / regulatory issues,

Portfolio flows from major asset managers have also underscored the month-long rotation of value from growth and momentum. ”In a note to clients Sunday, Deutsche Bank strategist Parag Thatte wrote that the momentum funds saw a another straight week with outflows last week, while low-volatility funds saw the inflow continue, and while the mutual funds saw some outflows last week, they were dwarfed by outflows seen in growth funds.

“In other signs of diminishing risk appetite in currents , small (- $ 5 billion) and mid-cap funds (- $ 4.3 billion), as well as growth (- $ 6.1 billion) and value (- $ 2.0 billion) large outflows, which largely reversed last week's inflow, "wrote Thatta. “Low volume ($ 0.4bn) saw steady inflows continue, but Momentum funds (- $ 0.4bn) saw a second week of outflow. Gold Fund ($ 2.8 billion) flowed back after a few lean weeks. ”

  Note your calendars!
Note your calendars!

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck [194559010] Read more from Emily:

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