US Stock Market Overview – Stocks are Mixed, Apples Surges, Boeing Tanks

US stocks were mixed on Monday as the Dow was weighed down by Boeing. The Nasdaq 100 outperformed closing higher rising 0.28% on the session. Sectors were mixed, with Energy and Consumer staples moving higher, and Utilities and Healthcare weighing on the broader markets. Energy shares outperformed following a surge in oil prices. Crude oil prices rose 2.22%, rising above $64 per share for the first time since November 2018. Apple shares were one of the best performers which helped the major average remain buoyed.

Boeing Tumbles and Weighs on the Dow

Boeing shares fall tumbled on Monday weighing on the Dow Industrials after Bank of America downgrading stock. Boeing received a double downgrade as Canaccord Genuity downgraded the company’s stock, citing near-term risk associated with its plans to maintain its current per-month delivery pace of 737 MAX shipsets. Boeing shares dropped 4.44% but was the second worst performer behind GE which dropped 5.19%.

Apple Shares Break Out

Apple shares rallied 1.57% and helped lead the technology sector higher. Shares of the large cap phone maker surged above resistance and is now poised to revisit the all-time highs near 230. Apple is owned by many ETF and mutual funds which helps build broad momentum if the stock prices leads rallies. Semiconductor shares also surged higher hitting a fresh 5-month high. The SMH ETF continues to be one of the best performing ETFs.

The Fed Rebuts White House

The Federal Reserve is finally rebutted the White House and President Donald Trump asserting that the tightness in monetary policy is negatively affecting the US economy. The St. Louis Fed said that the unwind of the bond portfolio which is scheduled to end in September of 2019, will have no negative impact on growth. This counters the Trump claim that this policy normalization that has ensued since he has been President has slowed the US economy down.

The Fed has been going through the process of unwinding its balance sheet which has been occurring in conjunction with higher fed fund rate, until December of 2018. The Fed has been allowing up to $50 billion a month in government securities to roll off what had once been a $4.5 trillion balance sheet.

Oil Prices Surge Helping Energy Shares Rally

Oil prices surged higher on Monday breaking out to a 5-month high rising 2.22%. The first chink in the armor came on Monday when a senior Russian official suggested Russia will press for an end of the OPEC cuts after the end of June. This was further clarified to say that participants will continue their coordinating efforts. Meanwhile, Saudi Arabia’s Energy Minister made a statement about the agreement: Khalid al-Falih told sources that it was too early to say whether the agreement would be extended beyond the end of June.

This article was originally posted on FX Empire

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