Good Morning Fellow Traders,
Thanks @Quantum Torus @Ravgnome and AM Loungers. An idea was floated that we should forget the market and go trekking instead - either Nepal or Tassie. I'm in. Will this be before or after we embark on @zero2a$mill's road trip?
The Australian share market has pulled itself off the canvas and finished slightly higher after a choppy day's trading and despite the US futures markets looking ominous.
The benchmark S&P/ASX200 index was up 1.1 points, or 0.02 per cent, at 5665.2 points at 1615 AEDT on Friday, while the broader All Ordinaries was up 0.1 point.
The Australian dollar has been hammered as risk sentiment took a knock following steep losses in US stock futures and weakness in the Chinese yuan, with it buying 70.33 US from 70.74 US cents on Thursday.
The S&P 500 ended at its lowest level since early May on Friday and flirted with correction territory after technology and internet shares sold off further, capping another volatile week for U.S. stocks.
During the session, the benchmark S&P 500 fell more than 10 percent from its Sept. 20 record closing high, but pared losses to end above that level. A finish of 10 percent or more below its all-time closing high would confirm a correction.
The Nasdaq registered its biggest weekly drop since March 23 after confirming a correction earlier in the week.
Grim results late Thursday from Amazon.com Inc (
AMZN.O) and Alphabet Inc (
GOOGL.O), two stocks that have helped power the equity markets decade-long bull run, sparked the day’s selloff and overshadowed data showing the U.S. economy continued to grow at a healthy clip.
“It’s all been driven off quarter reporting,” said Ernesto Ramos, portfolio manager for BMO Global Asset Management in Chicago. “When the reports are bad in technology you get a really bad day because of the elevated valuations.”
Investors may see more volatility through the remainder of the U.S. earnings season and ahead of the Nov. 6 U.S. midterm congressional elections, he and other money managers said.
“Once the elections and earnings are out of the way, we’ll have a calmer market but not necessarily a big move up,” Ramos said.
Google-parent Alphabet’s revenue missed estimates, fanning concerns that regulatory scrutiny and competition would throttle its scorching pace of growth. The stock fell as much as 5.6 percent before recovering to end down just 1.8 percent.
Amazon tumbled 7.8 percent in its worst daily percentage drop since October 2014, after it missed quarterly sales estimates and gave a below par holiday-season sales forecast.
The Dow Jones Industrial Average
.DJI fell 296.24 points, or 1.19 percent, to 24,688.31, the S&P 500
.SPX lost 46.88 points, or 1.73 percent, to 2,658.69 the Nasdaq Composite
.IXIC dropped 151.12 points, or 2.07 percent, to 7,167.21.
Source: Netwealth Morning Business Roundup
I think we may need a BIG Breakfast this morning along with our Coffee.
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Happy trading, play nicely and make informed decisions.
