Dow, S&P Swing to Weekly Losses on Recession Fears

The yield curve inverted for the first time since 2007

Mar 22, 2019 at 4:29 PM
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Stocks fell into the red at the open, as troubling eurozone manufacturing data amplified concerns of a slowing global economy. The selling pressure only intensified by midday, as disappointing U.S. factory data and a rare inverted yield curve -- typically seen as a pre-recession signal -- spooked an already-shaky Wall Street. By the time the dust settled, the Dow, S&P 500, and Nasdaq had all erased their weekly gains, and were staring at their biggest daily losses since Jan. 3.

Continue reading for more on today's market, including:

  • This Nasdaq alarm is sounding for the first time in 10 years.
  • This retail stock just flashed a technical warning sign.
  • Plus, another upgraded Apple supplier; why bears blasted this Turkey ETF; and more bull notes for Chipotle.

The Dow Jones Industrial Average (DJI - 25,502.32) closed near its session lows, down 460.2 points, or 1.8%. Nike (NKE) led 26 Dow decliners with its 6.6% post-earnings slump, while Verizon (VZ) paced the four advancers with its 2.5% gain. For the week, the Dow gave back 1.3%.

The S&P 500 Index (SPX - 2,800.71) shed 54.2 points, or 1.9%, to land right at the key 2,800 level, while the Nasdaq Composite (IXIC - 7,642.67) surrendered 196.3 points, or 2.5%. Week-over-week, the SPX and IXIC slipped 0.8% and 0.5%, respectively.

The Cboe Volatility Index (VIX - 16.48) popped 2.9 points, or 20.9% -- its biggest daily advance since Dec. 4. The market's "fear gauge" surged 27.9% on the week.

Closing Indexes Summary March 22

NYSE and Nasdaq Stats March 22

5 Items on our Radar Today

  1. The U.S. racked up its biggest monthly budget deficit to date in February, logging a record $234 billion shortfall. According to the Treasury Department, total spending reached $401 billion last month, while the U.S. brought in just $167 billion. Year-over-year, the budget deficit surged 39%. (MarketWatch)
  2. Existing home sales were a bright spot on the economic radar, surging 11.8% in February -- its swiftest pace since 2015 -- to a seasonally adjusted annual rate of 5.51 million. This was more than analysts were expecting, and was due in part to low mortgage rates and strong single-family home sales in the South and West. (Bloomberg)
  3. This Apple supplier was the latest to get an analyst upgrade.
  4. Why options bears blasted this Turkey ETF.
  5. Chipotle stock received its third bullish brokerage note of the week earlier.

Corporate Earnings Chart March 22

Unusual Options Activity March 22

Data courtesy of Trade-Alert

Gold Nabs Third Straight Weekly Win

Oil lost ground today, as disappointing economic data at home and abroad sparked concerns of easing global crude demand. By the close, May-dated crude was down 94 cents, or 1.6%, at $59.04 per barrel. Comparing front-month contracts, oil prices added 0.9% this week.

Gold benefited from its safe-haven status, with the April contract climbing $5, or 0.4%, to settle at $1,312.30 an ounce. For the week, the gold prices rose 0.7% -- marking their third straight weekly win.

Winning With Weekly Options

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