Summary:
US stocks fell Thursday, led by NASDAQ, as investors assessed mixed earnings and rising interest rates. All major indexes are set for weekly losses.
US stocks tumbled on Thursday, dragged by the NASDAQ as investors digested mixed earnings and high interest rates. All three major indexes are on track for weekly declines.
A third of the S&P 500 stocks are due to post results this week. Roughly four-fifths of the companies reported earnings that surprised on the upside.
The S&P 500 was down seven of the past eight sessions despite a relatively strong earnings season. The VIX is back above the key 20 the first time after the banking crisis in March.
The benchmark index is teetering near a correction after breaching 4,200 for the first time since May. Another bout of pain may be felt its 200 MA cannot be reclaimed in the coming sessions.
Oil prices fell more $2 a barrel as fears of a spillover from the Middle East conflict eased. Countries including the US urged Israel to delay a full invasion of Gaza.
US crude stocks climbed by 1.4 million barrel, according to the EIA, exceeding a gain of 240,000 barrels expected by analysts from a Reuters poll.
Brent crude recovery faltered near its 50 MA which is acting as a ceiling. The neutral technical picture will likely continue with price bound by the trading range formed since late Aug.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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