Originally published by Rivkin Securities
The Dow erased all gains for the year finishing Wednesday’s session 608 points lower. Unfortunately the rest of Wall Street followed suit as the Nasdaq and S&P 500 fell 4.4% and 3.1% respectively. Weak US housing data, mixed corporate earnings results, trade war fears and concerns regarding a slowing global economy all contributed to the sell off.
Amidst the turmoil we continued to see positive earnings results as Boeing (NYSE:BA) and Microsoft (NASDAQ:MSFT) reported strongly. Investor sentiment remains cautious as we anticipate the reports of over 100 S&P 500 companies including Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) and Comcast (NASDAQ:CMCSA). Optimism is not forgotten as over 80 percent of companies that have reported so far have beaten earnings expectations.
S&P/ASX 200 futures are down 94 points indicating a sharp drop at the open. Yesterday’s session clearly indicated indecisiveness as we saw the market rally and drop twice throughout the day. The current condition in the market potentially presents various buying opportunities. Today we look to New Zealand trade data for September, further US housing data and the European Central Bank policy meeting.