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Home / Business / Stock Market Update from Yahoo Finance: January 22, 2019

Stock Market Update from Yahoo Finance: January 22, 2019



Stock prices declined as new signs of slowing global growth emerged.

The S & P 500 (^ GSPC) fell 1

.83%, down 1.83% or 49.01 points. ET. The Dow (^ DJI) fell 1.68% or 414.82 points, while the Nasdaq (IXIC) dropped 2.29% or 163.94 points.

The session on Tuesday begins as stock markets in the US were shortened Monday closed, taking into account the Martin Luther King Jr. holiday. Meanwhile, leading politicians gather this week in Davos in Switzerland until Friday for the annual World Economic Forum.

On Monday, China reported that its economy had grown 6.6% over the past year, the country's slowest pace of growth since 1990. This is evident as data for China's consumer spending, factory activities and car sales declined for the fourth quarter of 2018 ,

<p class = "Canvas Atom Canvas Text Mb (1.0em) MB (0) – sm Mt (0.8em) – sm" type = "text" content = "President Donald Trump commuting the journey of his delegation commented on the WEF because of the partial closure of the government, China's wreckage data commented in a Twitter post week. "data-reactid =" 19 "> President Donald Trump commuting the trip of his delegation to the WEF Government stalemate had canceled earlier this week in a Twitter post the data on China's patchy growth.

"China has the lowest economic data since 1990 and new policies due to US trade flows. It makes so much sense for China to finally make a real deal and stop playing! "Trump wrote on Twitter."

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, told a Davos seminar that economic growth will slow in 2019 due to tensions in trade with the United States and a cooling real estate market at 6 %.

Fang's forecast falls just short of the International Monetary Fund's growth outlook for 2019. The IMF had earlier published this in its updated World Economic Outlook report. It is predicted that China's economy will pick up in both 2019 and 2019 slowing to 6.2% growth in 2020. This is unchanged from the IMF's previously published October 2018 outlook.

The bleak outlook for the world's second largest economy slowed oil prices lower due to lesser concerns Demand for fuel. Crude oil prices for West Texas Intermediate (CL = F) fell 2.3% to $ 52.57 a barrel. Brent crude oil prices (BZ = F) fell 1.9% to $ 61.54 a barrel at approximately 2:30 pm. ET.

While China's economic woes continue to dominate the headlines, similar slowdown concerns weigh on other emerging and developed economies. The IMF lowered its expectations for global aggregate growth to 3.5% in 2019 and to 3.6% in 2020. This represents a decline of 0.2 and 0.1 percentage points from its October forecast and is the IMF's second downward revision in three months. The IMF's October decline from the global growth forecast was mainly due to the increase in trade tariffs between China and the US. The IMF reiterated this point in its latest revision, adding a list of global concerns to German automakers due to new fuel-emission standards, weak domestic demand in Italy and the prospect of a no-deal Brexit.

Traders work on the New York Stock Exchange (NYSE) in New York. Michael Nagle / Bloomberg via Getty Images

The IMF expects US growth to slow to 2.5% in 2019 and to 1.8% in 2020, to 2.9% last year , These figures are unchanged from the forecasts of October 2018. However, in its most recent report, the IMF referred to the US government's closure since mid-December as a newly introduced disruption in domestic markets. He noted that the shutdown "continues to weigh on the sentiment of the financial sector at the end of the year".

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The government is shutting down and the According to a number of analysts, Day may well be a significant risk to US GDP in the first quarter, with Brett Ryan, a leading US economist at Deutsche Bank, writing in a note last week that the partial shutdown The Government has already led to a drop in real GDP growth of at least 0.3 percentage points, while JPMorgan analyst Michael Feroli has lowered its forecast for annualized real GDP growth for the first quarter to 2.25% due to the closure of 2.25% % House said in its own estimate that every week after the government stalemate will cause 0.13 percent decline in age in the US. "Data-reactid =" 37 "> The closure of the government on its 32 day could according to estimates of a a first-quarter US dollar GDP risk series of analysts. Brett Ryan, a leading US economist at Deutsche Bank, said in a statement last week that the government's partial stalemate had already caused real GDP growth to fall by at least 0.3 percentage points. Michael Feroli, an analyst at JPMorgan, lowered his forecast for annualized real GDP growth in the first quarter from 2.25% to 2% due to the shutdown. The White House said in its own assessment that every week of the government's downfall will cause a 0.13 percentage point decline in US growth.

Other companies have found that the lengthy stoppage – now the longest ever in the country – entails risks to the stock markets.

"In the past, the market has been rolling out decommissioning (average S & P 500 return of + 0.3% for government closures since 1981) and has risen after closure (median return of + 2.1% the month after) ), "Bank of America analyst Merrill Lynch wrote in a note. "But we're off the grid now, and the risks to both the US economy and the market are rising the longer the current shutdown lasts."

The analysts noted that the direct impact of the closure on GDP would have been "negligible" impact on earnings per share of S & P 500 in the first quarter of 2019, but companies with high government exposure could be at risk. In addition, consumer discretionary companies may be impacted by lower and delayed consumption, and tech and industrial companies may be affected as investment stagnates due to uncertainty in closures.

ECONOMY: Sales of Existing Homes Declined in December [19659018] Existing home sales declined 6.4% month-on-month to 4.99 million in December, the lowest level in three years. The National Association of Realtors headlines, according to Bloomberg, were well below estimates of a 1.5% monthly decline and the November revised-up of 2.1% month-on-month. Home sales in December were 10.3% lower than a year ago, and sales of existing homes have now fallen in four consecutive months compared to the previous year.

The average price of existing property in December was $ 253,600, an increase of 2.9% Last year, this was the smallest increase since the beginning of 2012.

The higher interest rates for 2018 were largely responsible for the weak home sales, said the chief economist of NAR, Lawrence Yun, in a statement.

"The housing market is obviously very vulnerable to mortgage rates. Weaker sales in December reflected consumer searches and contract signing in recent months, when mortgage rates were higher than today, "Yun said. "Now that mortgage rates are lower, house sales are expected to pick up in spring."

STOCKS: Johnson & Johnson Records Slower Sales in 2019

<p class = "Canvas Atom Canvas Text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = " Johnson & Johnson (JNJ) exceeded expectations for the fourth quarter of 2018, but said slower revenue growth in 2019. The Healthcare group posted a decline in the last three months of the year For fiscal year 2018, adjusted earnings of $ 1.97 per share were $ 20.4 billion, ahead of $ 1.95 per diluted share of earnings, with revenues of $ 20.2 billion US Dollar According to Bloomberg, the company recorded sales of $ 80.4 to $ 81.2 billion for full-year 2019, which was below consensus estimates of $ 82.7 billion, and J & J's shares declined at 10:57 ET by 1.76% to $ 128.39. "data-reactid = "51"> Johnson & Johnson (JNJ) exceeded expectations for the fourth quarter of 2018, but predicted slower revenue growth in 2019. Healthcare Conglomerate Reports Adjusted Earnings of $ 1.97 Per Share Revenues were $ 20.4 billion for the last three months of fiscal 2018, outperforming $ 1.95 per diluted share a turnover of 20.2 billion US dollars, according to Bloomberg. However, the company said it expected to achieve sales of $ 80.4 to $ 81.2 billion for full-year 2019, which does not meet consensus estimates of $ 82.7 billion. J & J shares fell 1.76% to $ 128.39 at 10:57 ET.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Activist Investors Are Pushing eBay (EBAY ) to consider the spin-off of StubHub ticketing and classifieds business Elliott Management Corp. announced on Tuesday that it holds more than 4%, and its stake in eBay represents a market value of approximately $ 1.4 billion. The company called on eBay to divest its StubHub and Classifieds properties, which are labeled "Valuable Strategic Assets of Significant Value in excess of the Value Currently Attributed to Them." In an article in the Wall Street Journal in which citing an unnamed person familiar with the matter reported that the hedge fund Starboard Value, which has a stake of less than 4% in eBay, has also talked to the online marketplace about this strategy from eBay rose at 7:57 ET by 7.61% to $ 33.36. "data-reactid =" 52 "> Activist investors are urging eBay (EBAY) to consider outsourcing their StubHub ticketing and ad transactions Elliott Management Corp. announced on Tuesday that it holds a stake of more than 4% in eBay, which represents a market value of approximately $ 1.4 billion, and asked eBay to divest its StubHub and Classifieds properties, which are said to be "more valuable as valuable strategic assets As part of the e-commerce platform, however, an article in the Wall Street Journal citing an unnamed person familiar with the matter reported that hedge fund Starboard Value who also owns less than 4% of eBay, has also talked to the online marketplace about this strategy, with eBay's shares rising 7.61% to $ 33.36 each (10:57 am ET)

<p class = "Canva s-Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Arconic (ARNC) announced Tuesday that it had a deal with The private equity firm Apollo Global reject. The deal should have been valued at over $ 10 billion and timed. According to Bloomberg, as one of the biggest leverage buyouts since the financial crisis, Arconic Chairman John C. Plant said in a statement explaining the decision, " We have not received any proposal for a full transaction that we believe to be in the best interests of Arconic shareholders and other stakeholders. "Arconic's shares dropped 17.5% to $ 16.78. data-reactid = "53"> Arconic (ARNC) announced Tuesday that it is giving up management of a deal with private-equity firm Apollo Global . The deal would be worth more than $ 10 billion and, according to Bloomberg, would be one of the largest leverage buyouts since the financial crisis. John C. Plant, Chairman of Arconic, said in a statement explaining the decision, "We did not receive a proposal for a full transaction that we believe is in the best interest of Arconic shareholders and other stakeholders "Arconic's shares dropped 17.5% to $ 16.78 from 10:56 ET.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck "data-reactid =" 55 "> Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = " text "content =" Follow Yahoo Finance at Twitter Facebook Instagram Flipboard LinkedIn and reddit . "data-reactid =" 56 "> Follow Yahoo Finance at Twitter [Facebook Instagram Flipboard LinkedIn and reddit .

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Read more about Emily: "data-reactid =" 57 "> Read more of Emily:

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