Stocks open lower on global growth worries

Buy this market on dips, says Peter Cardillo
March 22, 2019
Dow drops more than 450 points, S&P 500 posts worst day since January amid global growth worries
March 25, 2019

Stocks open lower on global growth worries

Stocks slump at the open as weak manufacturing data out of Europe sparks worries about the global economy; Dow -0.3% while S&P and Nasdaq both -0.5%.

“The fear of recession is increasing,” says Peter Cardillo, chief market economist at Spartan Capital Securities. “As a result, we have a market that is rethinking some of the optimism that was priced in.”

European bourses trade in the red after the latest flash PMI readings in Germany and France fell deeper into contraction, with France’s CAC and U.K.’s FTSE both -1.4% while Germany’s DAX -0.8%; in Asia, Japan’s Nikkei and China’s Shanghai Composite both closed +0.1%.

In U.S. corporate news, Nike -3.4% after beating earnings estimates but posting disappointing North American sales growth, and fellow Dow component Boeing -1% after reports that Indonesia cancelled an order for 49 of its 737 jets.

Among the S&P 500 sectors, materials (-1.4%), energy (-1.2%) and financials (-1.1%) are leading the broader market lower, while the defensive-oriented utilities (+0.5%), consumer staples (+0.2%) and real estate (+0.2%) groups start out in the green.

U.S. Treasury yields continue to decline across the curve, with the two-year yield down 4 bps to 2.36% and the 10-year yield tumbling 7 bps to 2.47%; the U.S. Dollar Index +0.2% to 96.65.

U.S. WTI crude oil -1.2% to $59.25/bbl, pulling back from YTD highs.