US envoy to Saudi Arabia condemns attacks on Aramco oil facilities    'Egyptians have only one of two options: either to surrender to terrorism or to confront and eliminate it,' Sisi says at Youth Conference    Gold closes lower, incurs a weekly loss as bond yields up    Egypt's eighth National Youth Conference discusses effects of publishing lies on the state    Disney CEO Bob Iger quits Apple board    Turkey says OIC to convene in Jeddah after Netanyahu annexation plans    U.S., Brazil pledge $100 mlnn for Amazon development    Kenya is now the third African country to introduce malaria vaccine    Sterling jumps to 7-week high on a Brexit breakthrough upbeat    Egypt's Sisi inaugurates the eighth National Youth Conference    Former PM Cameron 'sorry' for Brexit divisions    Bulgarian FA slams England boss Southgate over racism concerns    Sisi to open 8th edition of the National Youth Conference Saturday    Messi likely to miss Barcelona's next two fixtures, says Valverde    Arsenal's Lacazette ruled out until October with injury    Egypt. China sign agreement to export dates    Egypt's Sisi stresses nuclear safety standards in Dabaa power plant project    Egyptian govt to set up fourth terminal at Cairo airport    Fire breaks out on tanker at Norway's Sture oil terminal    Dollar exchange rate down at Egypt's major banks    Spotify buys music production marketplace SoundBetter    In 'Women Make Film,' a 14-hr epic of an overlooked history    'Harriet,' the first film about Tubman, premieres in Toronto    Egypt's Ahly striker Amr Gamal joins Talae El-Geish for 2 seasons    Suicide kills one person every 40 seconds, says WHO    Shikabala left out of Egypt's Zamalek squad for Generation Foot clash    Egypt's Sisi issues four presidential decrees for private universities    Egypt, UK sign deal to establish branch of London School of Economics at New Administrative Capital    8th edition of Egypt's National Youth Conference to start Sunday    Egypt's Olympic national team beat Saudi Arabia in friendly game    Egypt, Italy ink $4.3mn deal for solid waste recycling programme    Egypt's parliament to discuss new personal status law soon    Egypt's PM discusses details of Al-Hussein Mosque renovation    Sisi renews appointment of Sherif Seif El-Din as Egypt's ACA head    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Cairo's historic Tahrir square to be renovated – PM    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







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US stocks snaps 3-day win streak
Published in Amwal Al Ghad on 21 - 08 - 2019

U.S. stocks finished at their lows of the session on Tuesday as investors contended with worries about the strength of the U.S. economy and political developments in Europe that were weighing on government bonds.
The Dow Jones Industrial Average DJIA, -0.66% declined 173.35 points, or 0.7%, at 25,962.44, the S&P 500 index SPX, -0.79% lost 23.14 points, or 0.8% to 2,900.51, while the Nasdaq Composite Index COMP, -0.68% gave up 54.25 points, or 0.7%, to 7,948.56.
On Monday, the Dow rose 249.78 points, or 1%, to end at 26,135.79, while the S&P 500 index added 34.97 points, or 1.2%, to close at 2,923.65. The Nasdaq Composite Index advanced 106.82 points, or 1.4%, to finish at 8,002.81.
The losses represents the fourth straight decline for the Dow and the S&P 500, the lengthiest period of losses since the period ended July 15.
U.S. stocks struggled Tuesday, even though investors reacted positively to quarterly results from Home Depot Inc. HD, +4.40%, which beat expectations. However, the home-improvement company warned that lumber-price deflation, as well as the impact of possible tariffs, could impact its fiscal year sales. Its shares, still, gained were up 4.4%.
Home Depot earnings come a day after the U.S. Commerce Department said it has given Chinese telecom giant Huawei Technologies Co. Ltd. another 90-day reprieve during which it can continue to do business with American companies, without the granting of case-by-case licenses that would otherwise be needed, after the Commerce Department added it to its "entity list" in May.
Developments in Europe were putting some pressure on U.S. stocks, as Prime Minister Giuseppe Conte resigned, dissolving a tenuous pact with Deputy Prime Minister Matteo Salvini's anti-immigrant League party and the 5 Star Movement, raising worries about the country's leadership and sending bond prices higher and yields lower.
The 10-year Treasury note's yield TMUBMUSD10Y, +2.50% lost 4.6 basis points Tuesday to 1.557%, while the 2-year Treasury note TMUBMUSD02Y, +2.15% yielded 1.515%, down 2.7 basis points.
"The past couple of weeks have been breathtaking for bond investors and observers of the bond market," wrote John R. Mousseau, chief executive officer at Cumberland Advisors.
Meanwhile, President Donald Trump renewed his criticism of the Federal Reserve. "If the Fed would do its job, we'd have a tremendous spurt of growth," he said in remarks alongside the president of Romania at the White House on Tuesday afternoon. On Monday, Trump said the central bank should consider deeper cuts to key interest rates, of around 1%, which he reiterated on Tuesday.
The president also said Tuesday that he was looking at tax cuts, including cutting payroll taxes, which follows a late-Monday Washington Post report that the administration was considering a temporary payroll tax cut. The White House said cutting payroll taxes wasn't under consideration, and Trump on Tuesday didn't put any time frame on such a cut. "Payroll taxes is something I have been thinking about. Many people would like to see that," he said.
"For some time, we have been concerned that investors were too reliant on Fed rate cuts and too complacent about the prospects for a China trade deal, and we are now seeing the market waking up to these risks. There is way too much uncertainty to be near term bullish today," wrote David Spika, president of GuideStone Capital Management, in a Tuesday note.
Weighing on technology shares was a report that indicated as many as 20 states attorneys general will launch a joint antitrust investigation of large technology firms, according to the Wall Street Journal. This comes after the U.S. Justice Department announced a separate antitrust review of the tech firms, which reportedly include Google parent Alphabet Inc. GOOG, -1.32% and Facebook Inc. FB, -1.27%, among others.
Which stocks are in focus?
Shares of Kohl's Corp. KSS, -6.89% fell 6.9% after the retailer reported second-quarter profits and revenues that beat Wall Street expectations.
Medtronic Plc MDT, +2.62% stock rose 2.7%, after issuing the medical technology company beat analyst expectations for fiscal-fourth quarter earnings and sales, while raising its full-year outlook.
U.S.-traded shares of Sea Ltd. SE, -8.59% tumbled 8.6% Tuesday, after the online gaming company reported second-quarter results.


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