Stocks on track for three straight losses amid trade worries

Le Fonti International – February 7th 2019
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February 11, 2019

Stocks on track for three straight losses amid trade worries

Stocks extend losses that have followed two days of negative headlines surrounding U.S.-China trade tensions and slowing economic growth, but the market also may have been due for a pullback; S&P -0.4%, Dow -0.5%and Nasdaq -0.6%.

“The fear factor over the trade war has crept back into the market,” says Peter Cardillo, chief market economist at Spartan Capital Securities. “We’re probably looking at a more defensive situation until we have more clarity” on the negotiations.

European bourses are lower, with U.K.’s FTSE -0.2%, France’s CAC -0.3%and Germany’s DAX -0.8%; in Asia, Japan’s Nikkei finished -2% while China’s Shanghai Composite has been closed all week for Lunar New Year.

In U.S. earnings news, Mattel +25.2% after beating lowered expectations and offering an encouraging 2019 outlook and Phillips 66 +2% after easily beating earnings estimates.

All 11 S&P sectors trade in the red, led by consumer discretionary (-0.6%), energy (-0.5%) and financials (-0.5%).

U.S. Treasury prices edge higher, pushing the two-year yield down 2 bps to 2.45% and the 10-year yield lower by a basis point to 2.64%; the U.S. Dollar Index is flat at 96.50.

WTI crude oil +0.1% to $52.71/bbl.