Trade Developments Pressure Techs, Markets…..
U.S. equities were lower for the first trading session of the new week, led by pressure from the technology sector amid escalated trade tensions, and concerns over the ripple effect of U.S. actions taken against Chinese telecom giant Huawei. But, shares of T-Mobile and Sprint were solidly higher after overcoming a key first hurdle in their $26.5 billion merger agreement, getting a recommendation from the Federal Communications Commission Chairman. Treasury yields ticked higher and the U.S. dollar dipped amid a dormant domestic economic docket and as earnings season winds down, while gold was modestly higher and crude oil prices were mixed.
The Dow Jones Industrial Average (DJIA) decreased 84 points (0.3%) to 25,680, the S&P 500 Index was down 19 points (0.7%) to 2,840, and the NASDAQ Composite lost 114 points (1.5%) to 7,702. In moderate volume, 773 million shares were traded on the NYSE and 2.1 billion shares changed hands on the NASDAQ. WTI crude oil rose $0.29 to $63.21 per barrel and wholesale gasoline was down $0.04 at $2.01 per gallon. Elsewhere, the Bloomberg gold spot price increased $0.64 to $1,278.17 per ounce, and the Dollar Index— a comparison of the U.S. dollar to six major world currencies—ticked 0.1% lower to 97.94.
Housing data set to kick off the economic week…..
Treasuries were modestly lower, as the yields on the 2-year and 10-year notes, along with the 30-year bond, ticked 1 basis point higher to 2.21%, 2.40% and 2.83%, respectively. Volatility has ramped up amid escalated trade tensions and last week’s mixed global economic data.
Results from the retail sector will continue to put the finishing touches on earnings season this week, while the economic calendar will remain focused on the housing market, courtesy of tomorrow’s existing home sales report, with economists forecasting a 2.7% month-over-month (m/m) increase during April to an annual rate of 5.35 million units following March’s 4.9% decline.
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