U.S. Stock markets were ready for another round of sales on Friday, with futures markets starting lower for the last session of a week marked by volatility, bringing the major indexes into and out of negative territory for the year ,
How are the main benchmarks?
Dow Jones Industrial Average Futures
fell 222 points or 0.9% to 24,655, while S & P 500 futures
fell 32.45 points or 1.2% to 2,656.75 and Nasdaq 100 futures
slipped 150.75 points or 2.2% to 6,775.75
On Thursday, the Dow Jones Industrial Average
DJIA, + 1.63%
rebounded 399.95 points or 1% to 24,983, while the S & P 500 Index
SPX, + 1.86%
advanced 49.46 points, or 1.2%, to reach 2,705.57. The Nasdaq Composite Index
COMP, + 2.95%
gained 209.93 points, closing at 7,318.34, an increase of 2.95%, marking its best single-day performance since March 26th.
This came after the Dow lost over 600 points on Wednesday, when the Nasdaq dropped over 300 points, marking the worst day since 18 August 2011 and putting the index into a widespread definition of a market correction
the week after Thursday, the Dow was 1.8%, the S & P 500 2.2% and the Nasdaq 1.8%. For October, the S & P has lost 7.15% so far, the Dow has fallen 5.57% and the Nasdaq has lost 9.05%.
Read: Here is a reminder that stock market corrections do not always become bear markets
What drives the markets?
Investors took cautious stats and concerns over ongoing worries over slowing global growth and rising interest over the weekend, as companies saw peak growth gains.
The mood was not disappointing as two of the largest technology companies had problems. Amazon
AMZN, + 7.09%
posted record earnings late Thursday, but sales disappointed, and more importantly, its fourth-quarter revenue forecast – the important Christmas shopping season – was below expectations analysts. The shares slid in late trading by over 7%.
Read: Record profit can not save Amazon from price drops
GOOG, + 4.27%
GOOGL, + 4.40%
were more than 5% in the lead, after posting better-than-forecast gains, but late Thursday a loss of sales.
Economic data will be in focus on Friday, with gross domestic product expected to close at 8:30 am Eastern Time in the third quarter, followed by an index of consumer sentiment around 10am East. According to FactSet, forecasters expect GDP growth above the trend of 3.3% for the quarter, but traders will be watching the headlines for signs of a slowdown in the US economy.
Worries over the trade also sehed after US officials reportedly said trade talks with China will not be resumed until Beijing can present solid proposals against forced technology transfers and other economic issues.
What do analysts say?
"Well, it gets sloppy out there because the Nasdaq smokes Amazon and Google print," warned Dave Lutz, head of ETFs at JonesTrading, in a message to clients. He pointed to weak performance in both the Asian and European markets as a reason to expect a sell-off in the US by the weekend. Yardeni Research's President and Chief Investment Strategist Ed Yardeni argued in a statement to clients Friday morning Despite the continued market weakness in October, the current bull market will continue into next year. "The next relief rally should be about continued signs of economic growth coupled with subdued inflation," he wrote.
How do other markets act?
Asian equities fell 1% on Friday, led by a decline in the Hong Kong Hang Seng Index by 1%
and a 0.8% decline for the Nikkei 225 Index
The Japanese index was ready for a weekly decline of 6%.
European markets are also struggling.
and gold prices
GCZ8, + 0.24%
were higher, suggesting that investors are looking for supposedly safer harbors. oil prices
were lower and oriented towards inventories.
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