Dow Jones futures had changed little on Sunday evening, along with S & P 500 futures and Nasdaq futures amid a catching-up stock market, a US government shutdown, and concerns over Fed chairman Jerome Powell. The Dow Jones and other key indices suffered substantial losses in the last week, expanding the stock market correction and allowing Nasdaq to enter a bear market. Apple shares fell 3.9% on Friday, Facebook shares fell 6.3%, Amazon shares were down 5.7%, Netflix shares were down 5.45%, and Google parent company Alphabet (, 99) 3.2% – all reached new lows. A government deadlock will continue beyond Christmas as President Donald Trump pushes for the financing of the border wall. Meanwhile, Trump's representatives tried to reassure markets that the president, after the Fed's recent rate hike, did not intend to dismiss Fed chairman Powell's week and the S & P 500 index's 7.1
Apple (AAPL) is 35% off its high, low after 10 months. Facebook (FB) 42%, bangs at 23-month lows. Amazon (AMZN) is 32% below its best and is now at an 8-month low. Netflix (NFLX) is 41% below its high at a 10-month low. Google's stock is 23% below its high, but at a 14-month low.
Microsoft (MSFT), still the most valuable company at $ 754 billion, was down 7.3% from last week's Apple Stock, Google Stock, and Amazon Stocks for almost six months.
Trump Government Shutdown
On Saturday, a partial closure of the US government began without signs of a short-term solution. President Trump calls for the financing of a border wall. Parliament approved US $ 5 billion in government funding for a border wall, but there is no chance of receiving 60 votes in the Senate. The Senate has been adjourned until Thursday, December 27th. On January 3, the new Congress is sworn in and the Democrats take control of the house.
White House Budget Director Mick Mulvaney, who is also acting deputy chief of staff of the White House, told Fox News on Sunday that the US government's closure could take "into the new Congress."
Trump Mulls shoot Fed Chairman Powell?
Trump discussed the downing of Fed Chairman Powell after the Fed's Fed rate hike on Wednesday triggered a stock sale. to Bloomberg. Finance Minister Steven Mnuchin, however, said in a statement on Saturday that Trump denies considering Powell's repression and that the president did not believe he had the legal right to do so.
Mulvaney gave a slightly different attitude on Sunday. He told CNN that President Trump now "recognizes that he does not have the opportunity" to fire US Federal Reserve Chairman Powell.
Trump became increasingly vocal about his dissatisfaction with Powell and the consequences of Fed rate hikes. Fed Chairman Powell currently has few fans on Wall Street. However, analysts generally agree that President Trump, who dismissed the head of the Federal Reserve, could trigger a very negative stock market reaction.
Mnuchin Appeals to Top Bankers
Mnuchin called top executives from the six largest US banks this weekend. The Ministry of Finance stated in a statement attached to the tweet that the CEOs "have adequately confirmed their liquidity". Mnuchin will convene a meeting of the President's Working Group on Financial Markets on Monday. He is the chairman of this group, which includes representatives of the Fed, the SEC and the Commodity Futures Trading Commission.
Dow Jones Futures Today
Dow Jones futures fell by a fraction of their fair value. The futures on S & P 500 were unchanged. Nasdaq 100 futures were flat. Dow Jones futures were volatile on Sunday, lost 0.5% fair value loss and were positive for a short time. Keep in mind that Dow futures and other overnight actions will not necessarily be implemented in actual trading at the next regular meeting.
One could argue that the stock market is "due" for a bounce. Market anxiety levels reach a level typically associated with a short-term low. The sale on Friday, especially in technology companies like the FANGs and the Apple stock, had a capitulating effect. But even if the Apple stock or the average average offends for a day or two, that would not end the stock market correction.
Half-day session for stock market holidays
The stock exchange session on Christmas Eve closes on Monday at 10.00 am (ET). Expect light trade while people travel or shop at the last minute. There are no earnings reports this week. The closure of the US government is expected to delay the planned economic reports of the federal authorities.
Holiday shopping seems to meet or exceed expectations. After Christmas, Amazon is expected to announce a record Christmas holiday that will not really tell investors.
So Wall Street will focus on the government in the midst of a stock market correction or a bear market to wind up the year closure, the possible fate of Fed Chairman Powell and all new developments in China's trade war. In other words, all eyes remain on Trump.
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