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An Indecisive Market
09-Oct-18 16:30 ET
Dow -56.21 at 26430.57, Nasdaq +2.07 at 7738.21, S&P -4.09 at 2880.18

http://www.wsj.com/mdc/public/page/2_3021-tradingdiary2.html?mod=topnav_2_3021

[BRIEFING.COM] U.S. stocks waffled on Tuesday amid concerns about growth, rising interest rates, and the impending arrival of Hurricane Michael in Florida's panhandle. The broader market seemed reluctant to make a decisive move in any direction, as the S&P 500 index crossed back and forth across the unchanged line numerous times during the trading session.

The S&P 500 finished 0.1% lower, the Dow Jones Industrial Average closed lower by 0.2%, and the tech-heavy Nasdaq Composite reset to its flat line.

An overnight spike in U.S. Treasury yields spooked investors this morning, as the benchmark 10-yr yield rose as high as 3.26%. However, renewed buying interest drove prices up and yields down, which eased some of the early angst. The 10-yr note yield settled Tuesday's session at 3.21%, down three basis points from Friday.

The latter move aside, the stock market looked to have gotten caught up on economic and earnings growth concerns that were fostered by the the International Monetary Fund (IMF) cutting its 2018 and 2019 global growth outlook to 3.7% from 3.9% and a third quarter earnings warning from specialty chemicals company PPG Industries (PPG 98.56, -11.02, -10.1%), which pinned some disappointing guidance on currency pressures, cost inflation, softer demand in China, and a lower end-user demand in Europe and the U.S.

PPG's warning rattled the materials sector, which plunged 3.4%. Several sector components finished trading at their 52-week lows.

In addition, transportation stocks weighed on the industrials sector (-1.5%), as worries about higher fuel costs and likely transportation disruptions related to Hurricane Michael weighed on investor sentiment. The Dow Jones Transportation Average tumbled 1.9% and is now down 3.4% this month.

American Airlines (AAL 33.55, -2.35, -6.6%) was a notable laggard despite saying it expects its third quarter total revenue per available seat mile to be up approximately 2-3% year-over-year versus its prior guidance of up 1-2%.

Conversely, the heavily-weighted S&P 500 information technology sector (+0.4%) outperformed on Tuesday, rebounding modestly from recent selling that had it down 3.4% for the month entering today's trading, and lent an important measure of support to the S&P 500, which closed right on top its 50-day moving average.

Apple (AAPl 226.87, +3.10, +1.4%) and Microsoft (MSFT 112.33, +1.48, +1.3%) helped carry the load after failing to show gains the previous three sessions.

Separately, WTI crude climbed 0.8% to $74.86/bbl, as some oil production has been shut down in the Gulf of Mexico in anticipation of Hurricane Michael. The oil-sensitive energy sector led the sector standings, closing 1.0% higher.

Investors received the NFIB Small Business Optimism Index for September was released earlier today, decreasing to 107.9 from 108.8.

Nasdaq Composite +12.1% YTD
S&P 500 +7.7% YTD
Dow Jones Industrial Average +7.0% YTD
Russell 2000 +5.6% YTD