Market Perspective for November 19, 2018

Equities closed lower to start the week as the Nasdaq declined 3.03 percent. Facebook (FB), Nvidia (NVDA) and Apple (AAPL) dragged on the index. The Dow Jones Industrial Average slipped 1.56 percent.

SPDR Utilities (XLU) and Real Estate (XLRE) gained 0.46 and 0.34 percent, respectively. Energy (XLE), Financials (XLF) and Consumer Staples (XLP) were also relatively strong, losing only 0.04, 0.07 and 0.18 percent. SPDR Technology (XLK) declined 3.78 percent.

Apple dragged the technology sector lower after reports of production cuts and supplier confusion. The firm declined 3.97 percent on the day. Facebook’s (FB) woes grew after it alienated its media supporters, stoking tensions within the company. Shares slipped 5.71 percent. Nvidia slumped 12 percent after Bitcoin fell below $5,000 and pulled the cryptocurrency sector with it. Nvidia’s sales surged as cryptocurrencies peaked in December 2017. During the run-up, cryptocurrency miners were buying supplies of video cards, boosting Nvidia. The sales boom is seemingly over as the cost of cryptocurrency mining now exceeds the value of the popular currencies.

The homebuilder confidence index slipped to 60 in November. Nevertheless, any reading above 50 is positive. Tomorrow, the government will release housing starts and building permits for October. Analysts expect increases from September. Existing home sales are out on Wednesday.

Durable goods orders, consumer sentiment and the flash PMIs are also out this week.

Crude oil rebounded to $57 on Monday. Natural gas also rallied to $4.70 per mmBTU after weather forecasters predicted cold weather would last longer than expected for many parts of the country.

Intuit (INTU), Agilent Technologies (A), L Brans (LB), Urban Outfitters (URBN), Jack in the Box (JACK), Medtronic (MDT), TJX Companies (TJX), Target (TGT), Kohl’s (KSS), Lowe’s (LOW), Ross Stores (ROST), Best Buy (BBY), Autodesk (ADSK), Foot Locker (FL), The Gap (GPS), Deere & Co (DE), Rockwell Collins (ROK) and SodaStream (SODA) all report earnings this week.

 

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