Weak global data impact sentiment
U.S. stocks closed mostly lower on Monday, 25 March 2019 after data showing weakness on the global economic front triggered heavy losses at the end of last week in a session that showed little conviction from buyers or sellers. Lingering concerns about global economic growth tempered buying interest and contributed to a further decline in U.S. Treasury yields. However, the Dow bucked the trend to rise as shares of Boeing rallied after recent losses.
The Dow Jones Industrial Average meanwhile, rose 14.51 points to 25,516.83. The S&P 500 index shed 2.35 points to 2,798.36 with technology and financials topping the losses. The Nasdaq Composite edged down 5.13 points to 7,637.54.
Wall Street remained focused on global recession fears sparked Friday by a round of weak March purchasing-managers-index readings in the eurozone that pointed to a further slowdown in activity. U.S. data showed growth in the manufacturing sector slowed to a 21-month low in March, compounding those fears. Global markets fell in tandem with Asian stocks in the red while Europe stocks also weaker.
Rattled investors poured money into bonds, forcing the spread between the 3-month Treasury and the 10-year note to invert for the first time since 2007. The yield-curve inversionwhen the rate of longer-dated debt falls beneath its shorter-dated counterpartsis seen by many as an accurate recession indicator.
It was a quiet day for the U.S. economic calendar but fresh data out of Europe showed the German business sentiment survey from the Ifo Institute rose to 99.6 in March from a forecast of 98.3. The index fell to 98.5 in February.
Shares of Apple slid 1.2% after the tech giant announced a news subscription service and a credit card in partnership with Goldman Sachs Group and Mastercard at its special event.
Boeing shares rose 2.3%, recouping some of the losses in the wake of the fatal crash of the company's 737 Max 8 aircraft near Ethiopia's capital, Addis Ababa that resulted in the death of 157 people. The stock is down 16% so far this month.
Bullion prices ended higher at Comex on Monday, 25 March 2019. Pries rose due to a weak dollar.
Gold futures settled around 0.8% higher to open the final week of March at $1,322.60/oz, its best levels in a month. Silver prices ended 0.3% higher at $15.8 an ounce.
The U.S. Dollar Index ended about 0.1% lower at 96.55.
Crude oil futures settled on a mixed note on Monday, 25 March 2019 with U.S. prices marking their lowest settlement in just over a week on the back of persistent worries about an economic slowdown hurting energy demand. Global prices, however, found support from ongoing cuts among major crude producers as well as tensions in Venezuela.
West Texas Intermediate crude for May delivery on the New York Mercantile Exchange fell 22 cents, or 0.4%, to settle at $58.82 a barrel, the lowest for the front-month contract since March 15. On Friday, the front-month contract fell 1.6%, but ended 0.4% higher for the week.
In contrast, May Brent crude tacked on 18 cents, or 0.3%, to end at $67.21 a barrel on ICE Futures Group, after booking a weekly decline of 0.2%. It lost 1.2% in Friday's session.
Investors did not receive any U.S. economic data.
Looking ahead, investors will receive several economic reports on Tuesday: Housing Starts and Building Permits for February, the FHFA Housing Price Index for January, the S&P Case-Shiller Home Price Index for January, and the Conference Board's Consumer Confidence Index for March.
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