|Day's range||2,623.14 - 2,708.54|
|52-week range||2,532.69 - 2,940.91|
Trade has become the driving theme for investors, and with trade optimism fading and the market selling off in response, what investors saw last week could be a preview of things to come next year.
Investors are returning to emerging markets, hoping to find bargains after one of the worst selloffs in years. Flows into developing countries’ stocks and bonds surged in November to $33.9 billion, their highest level since January, data from the Institute of International Finance showed. After years of double-digit returns, emerging markets have been slammed in 2018 by a host of concerns, from a stubbornly strong dollar to a trade conflict between the U.S. and China.
In recent weeks, U.S.-China trade tensions, signs of slowing global growth and central-bank tightening have roiled stocks, fixed-income securities and commodities. Meanwhile, a potential yield-curve inversion in the bond market, where shorter-dated bonds yield more than longer-dated ones, has caused concerns of a looming economic recession. The MSCI All Country World Index, which captures equity returns from 23 developed and 24 emerging markets, has only fallen six times in December in the past 30 years, a better record than any other month.
An investor trend that has helped buoy stocks over most of the past decade is showing signs of breaking down. For the first time since the dot-com era, investors are cautious about buying shares after selloffs, raising signals that the longest bull market in U.S. history is in its late stages. This year, that “buy-the-dip” trend has broken apart.
When Terry Laughlin died unexpectedly in October, (BAC) lost the chief of its global wealth management business and a close advisor to CEO Brian Moynihan. Now, instead of appointing a direct replacement, B of A has bumped up the leaders of its two wealth management businesses to its top management team. Andy Sieg, who heads Merrill Lynch Wealth Management, and Katy Knox, the president of U.S. Trust, will join the team and report directly to Moynihan.
Although falling stocks and rising interest rates will continue to weigh on sentiment, those negatives are likely to be offset by higher wages and retreating oil prices, Goldman says in a research note to clients. "Three of the key drivers of consumer spending send a positive message for the near-term outlook," the bank's analysts say. For a market that's become increasingly jittery over the U.S. economy, Goldman Sachs has a message: All is not lost.
Wall Street's sour mood after its latest tumble could stretch into the New Year, says Bank of America technical strategist Paul Ciana. "Going back long term, the dollar versus the S&P as a ratio has a few significant bottoms that end up leading to a period where the dollar severely outperformed the S&P 500," Ciana said on CNBC's " Futures Now " on Thursday. It was a similar setup in 2008 and 2014-15, said Ciana, BofA's chief global fixed income technical strategist.
A potentially torrid week of Brexit volatility ahead has left investors nervous about taking up a firm position either way on sterling. The currency started December with a bout of volatility, triggered by news from the European Court of Justice that the UK could cancel Brexit without explicit permission from EU member states. The 1.4 per cent move within a day illustrates the difficulty facing forex traders as sudden flurries of Brexit-related news batter the market.
Russell Investments' Doug Gordon is optimistic stocks will find a floor — just not until next year. "The first and fundamental question: Is this a correction or is this the start of the bear market? While you can certainly see a path that could get us to a bear market, I think it's more of a messy correction," he told CNBC's " Trading Nation " on Friday.