At the closing of the week, almost all worlds’ indexes showed a small decline. But, if the US stock market had just a small retracement after a relatively strong growth on Tuesday and on Wednesday against the background of the US Congressional elections, then the European indexes are clearly in a protracted crisis.
1. Dow Jones
There are two factors putting a small pressure on the US stock indexes: the decrease of the demand from China that is the main trade partner of the US, and the discount rate growth in December. At the end of Friday, Dow Jones declined by 0.77%. The closing price is USD 25 989.30, the daily volatility range is 25 882.91 – 26 161.49.
Here are the companies that demonstrated a small growth per one day – Walt Disney (+1.72%) and Pfizer (+0.98%). Financial companies are again among drawdown leaders. For example, shares of Goldman Sachs declined by 3.89%.
2. S&P 500
Within one day this index has lost 0.92%, declining down to USD 2 781.01. The daily range was USD 2 764.5 – 2 811.25. In general, during one week, this index demonstrated pretty good growth, so such the slight retracement at the last day of the week is not very significant. Moreover, this retracement is explained with the fact that investors are locking in positions in the run-up to weekends.
The growth record on Friday was demonstrated by the securities of Monster Beverage Corp (+4.99%) and Colgate Palmolive (+4.76%). The securities of gas and oil refining companies have declines along with the oil. Some small drawdown was also demonstrated by Pacific Gas, declining by 16.49%.
NASDAQ index has once again become a drawdown leader of the last day. Its decline was around 1.65%. The closing price was the level of USD 7 406.90, the daily range: 7 349.49 – 7 474.34.
The unexpected increase was demonstrated by a biotechnological sector. Some small increase was also demonstrated by the securities of Novelon Therapeutics (+36.8%) and Twist Bioscience (+31.58%). The strongest drawdown was demonstrated by the securities of MoneyGram (-49.22%).
Quite surprising positive trend was demonstrated by the leading European index that increased by 0.02%. The opening price was the level of 11 468.94, the closing price – 11 529.16. The daily range: 11 418.35 – 11 549.06.
The fact that its quotes have closed close to its daily maximum, might be considered as a positive trend, if it wasn’t in a protracted crisis. 13th of November – is the deadline for providing Brussels with the new project of the Italian budget. The bank system problems, political divisions in respect of the necessity to cut the Italian government expenses, as well as the probability of Brexit put very big pressure on the stock market.
5. Nikkei 225
The Japanese index has closed this week with the modest decline by 1.05%, but, in general, demonstrated its positive dynamics within the week. The closing price was the level of “22 250”, the daily range was USD “22 223.00 – 22 482.00”. Thanks to the weekly growth, since the year 2018, investors losses has been reduced to 1.89%.
Next week forecast
So far there is almost no reason for optimism. We shouldn’t expect any growth of European and Asian indexes: Asia suffers from trade wars more than the US, and Europe is experiencing some internal political conflicts. The situation in the United States of America is not much better. For instance, during the last month, NASDAQ hasn’t brought any profit to its investors. In many aspect quotes will depend on the financial reports of companies, but it will hardly serve as a trigger for growth during the next week.