Stock Market News For Nov 15, 2018
Zacks Investment Research | Nov 14, 2018 09:40PM ET
U.S. stock markets closed sharply lower on Wednesday following investor concerns that banks will face tighter regulations once Democrats take control of the House of Representatives. Moreover, precipitous fall of tech-behemoth Apple’s shares and conflicting news from trade front also made investors skeptical about investing in risky assets like equities. All three major stock indexes closed in the red.
The Dow Jones Industrial Average (DJI) closed at 25,080.50, shedding 0.8% or 205.99 points. The S&P 500 Index (INX) also declined 0.8% to close at 2,701.58. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 7,136.39, dropping 0.9%. A total of 8.96 billion shares were traded on Wednesday, higher than the last 20-session average of 8.53 billion shares. Decliners outnumbered advancers on the NYSE by 1.54-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 1.93-to-1 ratio. The CBOE VIX increased 5.3% to close at 21.08.
How Did the Benchmarks Perform?
The Dow ended in negative territory for the fourth straight day, its longest losing streak since Aug 13. Notably, 23 components of the 30-stock blue-chip index closed in the red while 6 finished in the green and the remaining one was unchanged. The tech-laden Nasdaq Composite closed resumed its downward journey after a brief gap of yesterday when the tech-heavy index closed flat.
Meanwhile, the S&P 500 also closed in the red for fifth consecutive days. In broad-market index is in negative territory for the month so far. Financials Select Sector SPDR (XLF), Technology Select Sector SPDR (XLK) and Utility Select Sector SPDR (XLU) are major losers dropping 1.5%, 1.2% and 1%, respectively. Notably, ten out of total 11 sectors of the benchmark index closed in the red while one finished in the green.
Banking Stocks Plunge
On Nov 14, CNBC reported that Democrat Representative Maxine Waters stated that Trump administration policy of gradual deregulation of banking industry will come to an end once the new House of Representatives starts proceedings from January 2019. Maxine Waters is likely to become the Chairman of the powerful House Financial Services Committee in the new Congress.
Maxine Waters conveyed her concerns about the Federal Reserve’s efforts to reduce capital and liquidity requirements for banks. According to her, deregulation of banks is in fact raising the possibility of another financial crisis for the United States. Democrats will do what is needed to save the country from this severe risk.
Following the news of tighter regulatory measures, shares of major banks like JPMorgan Chase & Co. (NYSE:JPM) and The Goldman Sachs Group Inc. (NYSE:GS) declined 2.1% and 1.3%, respectively. Both stocks carry a Zacks Rank #3 (Hold). You can see Original post
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