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US STOCKS: Late Equities Roundup: Extending Lows Into Expiration, Other Factors

US STOCKS
USEquitiesBulletMarketsFixed Income BulletsForeign Exchange BulletsNorth America
  • Stocks continued to extend lows late Friday with SPX Eminis and Nasdaq at last week Thursday levels while the DJIA retreats to 4 week lows. Currently, the DJIA trades down 773.52 points (-1.75%) at 43579.27, S&P E-Minis down 100.25 points (-1.63%) at 6062.75, Nasdaq down 394.9 points (-2%) at 19665.11.
  • Several factors were in play Friday, stocks reversed modest early gains, extended session lows after this morning's weaker than expected economic data (S&P flash Services PMI below 50, Existing home sales were softer than expected while the final University of Michigan consumer survey for February showed a worrying rise in long-term inflation expectations.
  • Trading desks also cited today's call weighted option expiration that has historically leaned toward bearish price action in the week after. President Trump reiterating a 25% tariff on cars starting April 2 didn't help either. But wires recirculating a South China Morning Post article regarding new Covid strain with "pandemic potential" triggered renewed risk-off selling vs. buying in Treasuries (TYH5 hit 109-24 high +18.5; yield falling to 4.4042% low.)
  • Consumer Discretionary and Industrials continued to underperform in late trade, autos and travel related stocks weighing on the Consumer sector: Norwegian Cruise Line -6.37%, Airbnb Inc -5.65%, Carnival Corp-5.62% and Tesla -4.47%. GE Vernova -8.17%, Builders FirstSource -5.74%, Howmet Aerospace -5.28% and United Rentals Inc -5.21% weighed on the Industrial sector.
  • On the positive side, Consumer Staples and Utilities outperformed in the second half, food & beverage shares leading gainers: Hershey Co +4.58%, Conagra Brands +4.31%, Campbell's Company +3.76%, Mondelez International Inc +3.67%. American Water Works +3.11%, Consolidated Edison +3.07%, Dominion Energy +1.92% and Duke Energy +1.86% led gainers in the Utility sector.
  • Of note, pharmaceutical stocks rallied on the re-aired Covid headlines, Moderna climbing to 35.90 high from 33.18 low. On the flipside, United Health Care shares were -6.75% as DOJ investigated fraud charges.
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  • Stocks continued to extend lows late Friday with SPX Eminis and Nasdaq at last week Thursday levels while the DJIA retreats to 4 week lows. Currently, the DJIA trades down 773.52 points (-1.75%) at 43579.27, S&P E-Minis down 100.25 points (-1.63%) at 6062.75, Nasdaq down 394.9 points (-2%) at 19665.11.
  • Several factors were in play Friday, stocks reversed modest early gains, extended session lows after this morning's weaker than expected economic data (S&P flash Services PMI below 50, Existing home sales were softer than expected while the final University of Michigan consumer survey for February showed a worrying rise in long-term inflation expectations.
  • Trading desks also cited today's call weighted option expiration that has historically leaned toward bearish price action in the week after. President Trump reiterating a 25% tariff on cars starting April 2 didn't help either. But wires recirculating a South China Morning Post article regarding new Covid strain with "pandemic potential" triggered renewed risk-off selling vs. buying in Treasuries (TYH5 hit 109-24 high +18.5; yield falling to 4.4042% low.)
  • Consumer Discretionary and Industrials continued to underperform in late trade, autos and travel related stocks weighing on the Consumer sector: Norwegian Cruise Line -6.37%, Airbnb Inc -5.65%, Carnival Corp-5.62% and Tesla -4.47%. GE Vernova -8.17%, Builders FirstSource -5.74%, Howmet Aerospace -5.28% and United Rentals Inc -5.21% weighed on the Industrial sector.
  • On the positive side, Consumer Staples and Utilities outperformed in the second half, food & beverage shares leading gainers: Hershey Co +4.58%, Conagra Brands +4.31%, Campbell's Company +3.76%, Mondelez International Inc +3.67%. American Water Works +3.11%, Consolidated Edison +3.07%, Dominion Energy +1.92% and Duke Energy +1.86% led gainers in the Utility sector.
  • Of note, pharmaceutical stocks rallied on the re-aired Covid headlines, Moderna climbing to 35.90 high from 33.18 low. On the flipside, United Health Care shares were -6.75% as DOJ investigated fraud charges.