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THE GIST (“THE WHAT”)
Retreating back below the closely-watched 3000 mark, the S&P500 index erased early session gains as investors digested mixed batch of earnings and a fresh setback in Brexit, closing the choppy session at session lows at 2995.99, down 10.73 points and losing 0.36% over previous session’s close.
Holding on to slight gains for most part of the session, the index tumbled late afternoon alongside steep declines in Facebook Inc. and Netflix Inc. A sharp leg lower going into the close pushed the index to session lows. Strength in Energy stocks, however, helped limit day’s losses.
THE DETAILS (The “How & Why”):
With key earnings in focus, the index managed to hold on to the critical 3000 level for most part of the early session. Beneath the choppy lackluster price action, Biogen Inc. skyrocketed 26.11% after the biotech giant surprised investors by announcing its plan to pursue regulatory approval for an Alzheimer treatment drug Aducanumab, months after discontinuing the trails following failed results.
Investors digested mixed earnings by major companies across sectors. Harley-Davidson Inc. and Procter & Gamble Co jumped 7.98% and 2.60%, respectively on beating earnings expectations. Under Armour Inc. soared 6.88% after the apparel and footwear company announced that a new CEO Patrik Frisk will replace its CEO and founder Kevin Plank. On the other hand, toy maker Hasbro Inc. tumbled 16.76% after missing earnings expectations by a steep margin, blaming tariffs for disrupting its supply chains.
Technology and Communication Services sectors posted the biggest percentage declines of the choppy session, closing 1.37% and 0.90% lower, respectively. Facebook Inc. led social media stocks lower, slipping 3.91% following introduction of a new social-media bill that would allow users to migrate data to rival platforms. Twitter Inc. also fell 3.19% ahead of its earnings release.
Investors also monitored the Brexit development. A yet another setback dampened sentiment during the late afternoon session, after U.K. lawmakers rejected Prime Minister Boris Johnson’s proposed timetable for the proposed split with the European Union.
On the bright side, Energy stocks extended their strong gains into the second straight session, closing broadly higher by 1.31%. Oil prices rose for the first time in three sessions amid growing expectations that the OPEC will consider further production cuts when they meet next in December. Pioneer Natural Resources Co, National Oilwell Varco Inc. and Schlumberger Ltd. all jumped more than 3% apiece.