U.S. stocks on Tuesday morning bounced modestly higher, after the worst day of 2019, with the technology sector up 1.5%, after China moved to restrain the fall in its currency.
On Monday, stocks had their worst day of the year, with the Dow shedding more than 767 points. The Dow ended the day down 2.9%, at 25,717.74, while the S&P 500 declined 87.31 points, or 3%, to close at 2,844.74. The Nasdaq Composite shed 278.03 points to finish at 7,726.04, a decline of 3.5%. China’s yuan traded Tuesday at 7.0695 to the dollar in offshore trade USDCNH, -0.6311%. In mainland trade USDCNY, -0.4127%, the yuan traded at more than 7.0316 per dollar, holding around its lowest level in about a 10 years. The People’s Bank of China allows the onshore yuan currency to trade in a band within 2% of its midpoint against the dollar.
“This move by China may have brought investors a brief respite after several days of selling but it remains to be seen whether today’s move is emblematic of a short term base, or just merely the precursor to a dead cat bounce.,” Hewson wrote. Looking further ahead, investors are awaiting a speech from St. Louis Federal Reserve President James Bullard, which could provide insights about monetary policy in the face of increasing trade spats. Bullard is set to speak at 1:05 p.m. Eastern Time at the National Press Club in Washington.Which stocks are in focus? SeaWorld Entertainment Inc. SEAS, -1.
Shares of Dean Foods Co. DF, -24.55% plummeted 28% after the milk-and-dairy products seller reported a wider-than-expected second-quarter loss and sales that rose less than analyst projections, amid volume pressure and an “accelerated decline” in the conventional white milk category.
$VIX at 6 month high. Day traders are trying to make some money on yesterday's deep and some confused long term investors becoming bag holders thinking it's a good buying opportunity. StockMarket is still significantly overvalued by 150%! Insiders like JeffBezos are selling!
Dead cat bounce?
turnaroundtuesday
Chinese stuffs