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Market Commentary – Wednesday, August 08, 2018

landsberg bennettStocks finished mixed Wednesday. The Dow dropped 45 points to 25583, while the S&P 500 was unchanged at 2857. The Nasdaq Composite gained 4 points to 7888.

The major averages fluctuated as investors assessed the latest corporate earnings and trade-related updates. In geopolitical news, the Trump administration finalized plans on Tuesday to impose an additional $16 billion of tariffs on Chinese imports to take effect August 23rd. In central bank news, Richmond Fed President Barkin reiterated the need to continue increasing interest rates gradually amid a strong economy.

Six of 11 S&P 500 sectors closed in negative territory with Consumer Staples leading decliners. Energy shares also lagged in sympathy with weakness in crude oil prices. In earnings, Walt Disney slipped 2.0% to $114.28 after missing Wall Street earnings and revenue expectations. Meanwhile, 3D Systems rallied 32.6% to $17.99 after the 3-D printer manufacturer topped consensus profit projections. Snap Inc. lost 6.5% to $12.26 as average daily users fell during the second quarter. CVS Health gained 4.1% to $68.15 after besting analyst forecasts on both the top and bottom line.

Breadth was negative on issues by 5:4 on the NYSE and positive by 7:6 on the Nasdaq. Composite NYSE volume was more than 3.7 billion shares.

Treasuries were modestly higher with the yield on the 10-year note off two basis points to 2.96% following today’s record $26 billion auction of that maturity. In commodities, WTI crude fell 3.4% to $66.81/barrel. COMEX gold rose 0.3% to $1212.60/ounce amid a weaker dollar.

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