Stock market sell-off could signal turning point for bull market, as Dow plunges again

The stock market sell-off has shifted the mood on Wall Street from greed to fear. Some market pros say it reflects a turning point for the bull.

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Bear Market is a term that sends fear into Wall Street and investors. What does it mean? And how does it affect both Wall Street and Main Street? Adam Shell explains.

In a span of six treacherous days on Wall Street, the mood of the stock market has turned from giddy optimism to gloomy pessimism.

Pinpointing major shifts in markets is an inexact science. But some Wall Street pros say the current one’has reached a turning point, as the low interest rates that powered stocks higher over the last decade give’way to higher borrowing costs and heightened risks.

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  • Publisher: USA TODAY
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News Wrap: Stock market selloff ripples around the world

In the day’s other news, a stock market sell-off rippled around the globe. And Wall Street took heavy losses again.

The Dow Jones industrial average plummeted 546 points to close at 25052. It is down more than 1,000 points in the last two days, the biggest percentage drop since February. The Nasdaq fell 93, and the S&P 500 last 57 to its lowest close in three months.

Rising interest rates are helping to drive the sell-off today. President Trump charged again that the Federal Reserve is raising rates too quickly.

President c I think the Fed is out of control. I think what they’re doing is wrong. I think the Fed is far too stringent, and they’re making a mistake. And it’s not right. And it’s ‘ despite that, we’re doing very well, but it’s not necessary, in my opinion. And I think I know about it better than they do.

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  • Publisher: PBS NewsHour
  • Date: 2018-10-11T18:45:01-04:00
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Technically Speaking: Markets Cling To Support

In this past weekend’s newsletter, I discussed the fact the markets had finally awoken to the reality that rates have once again broken above 3%.

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However, I also noted that on a very short-term basis, the market was oversold enough to generate a bounce. Importantly, with market testing the January breakout highs this is a ‘make or break’ point for the markets. There are two things currently that are worth paying attention to from a portfolio management standpoint.

So far, the markets have been able to fend off the impact of higher rates and tariffs on the back of strong earnings results and the strength in the economic data.

  • Publisher: investing.com
  • Date: 2018-10-09
  • Author: Lance Roberts
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One person could turn around this failing market on Friday: Jamie Dimon

The bank, along with Wells Fargo and Citigroup, is set to release earnings. But J.P. Morgan, the cr’me of the banking sector is the one to watch, particularly during its conference call in the hour before the opening bell.

“I think the market is going to be laser focused on J.P. Morgan,” as it’s the first big blue chip to report, said David Lefkowitz, senior Americas equity strategist at UBS Global Wealth Management’s Chief Investment Office.

J.P. Morgan is set to report earnings at around 7:00 a.m. ET Friday morning, but traders will be listening to CEO Jamie Dimon’s comments on the economic and banking outlook at 8:30 a.m. ET. The bank is expected to report earnings of $2.25 a share for the previous quarter, up from $1.65 a year ago, according Thomson Reuters. Revenues are expected at $27.5 billion versus $25.2 billion the same period a year ago.

The stock market tends to be a leading economic indicator

Last week offered some insight to economics and stock market behavior. The U.S. unemployment rate reached its lowest level since 1969 and wages moved higher, yet major U.S. stock indices lost value.

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The answer is stock prices tend to be leading indicators. They reflect investors’ expectations for the future. Even though there are several strong indicators within the economy, there are also several weakening ones, and higher interests rates, which can be a drag on corporate profits longer-term.

In general, ‘while it usually takes at least 12 months for any increase or decrease in interest rates to be felt in a widespread economic way, the market’s response to a change is often more immediate,’ explained Mary Hall on Investopedia.com.

  • Publisher: The Edmond Sun
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