Published: Thu, October 25, 2018
Markets | By Otis Pena

Markets Right Now: Stocks plunge in early trading

Markets Right Now: Stocks plunge in early trading

Wall Street sank on Tuesday, continuing a punishing month for USA stocks, as dismal outlook from industrial bellwethers Caterpillar and 3M sparked concerns over corporate growth and added to worries ranging from China's slowdown to Saudi Arabia's diplomatic isolation.

The S&P 500 lost 84.59 points, or 3.1 percent, to 2,656.10.

The S&P 500 fell 25 points, or 0.9 percent, to 2,730 as of 1:15 p.m.

The Toronto Stock Exchange's S&P/TSX composite index dropped 376.04 points, or 2.46 per cent, at 14,909.13. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

About 24 percent of the companies in the S&P 500 had reported third-quarter results as of Wednesday.

Earnings from S&P 500 companies are expected to have increased about 22 percent in the third quarter from a year ago, though 2018 is seen as a peak for the profit cycle, according to I/B/E/S data from Refinitiv.

BOTCHED DELIVERY: United Parcel Service slid 5.3 percent to $108.02 after the shipping company reported weak worldwide revenue, while the strong dollar and high fuel prices also hurt its results. In Russia, the RTS dollar index was losing 0.46 percent, while the ruble-denominated MOEX was trading flat.

HOUSING SKID: The Commerce Department said sales of new US homes plunged 5.5 percent in September, the fourth monthly drop.

Benchmark U.S. crude fell 4.2 percent to settle at $66.43 per barrel in NY.

China to launch lunar lighting into outer space
The extra light could be made to shine into disaster zones during blackouts, aiding relief and rescue efforts, he said. China will launch its first moon from the Xichang Satellite Launch Center in Sichuan in 2020.

"We think that the S&P 500, Treasury yields and the United States dollar will all fall by the end of next year, as a sharp slowdown in the U.S. economy prompts the Fed to stop hiking rates sooner than investors are anticipating", researchers at Capital Economics said in a note earlier this week.

Traders bid up shares in McDonald's after the fast-food chain reported third-quarter results that topped analysts' forecasts.

Energy, meanwhile, also pressured the border market, as oil prices plunged 4% as Saudi Arabia vowed to meet the global oil demand as sanctions on Iran, slated for November 4, are expected to dent global oil supplies. Technical buying at support levels around 2,700 on the S&P 500 also helped stocks to bounce back, strategists said.

The beaten-down technology sector fell 1.37 percent, led by chipmakers, over concerns of slowing growth in China and ahead of key earnings. Brent crude, used to price global oils, dropped 4.1 percent to $76.52 per barrel in London. Valero Energy slid 4.6 percent to $87.44.

METALS: Gold fell 0.5 percent to $1,231.10 an ounce.

MARKETS OVERSEAS: Major indexes in Europe finished mixed. Marathon Oil dropped 3.5 percent to $19.74. The euro fell to $1.1387 from $1.1467.

Germany's DAX slid 2 percent and France's CAC 40 fell 1.5 percent lower. Hong Kong's Hang Seng index dropped 0.4 percent and the Kospi in South Korea gave up 0.4 percent. Britain's FTSE 100 picked up 0.9 percent.

The US stock decline was preceded by a sharp sell-off in Asia, where China's Shanghai Composite declined 2.26 percent and Japan's Nikkei plunged 2.67 percent.

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