This article was originally published on this site
Posted on August 11, 2017 at 1:52 pm GMT
Woes among European equities continued during the day as political tensions failed to dissipate. The pan-European STOXX 600 extended its losses by 1.10% with the Italian FTSE MIB index underperforming other indices on the old continent by falling 1.47%. In the US, the main indices opened higher following the dollar weakening ahead of US trading on inflation disappointment. The Dow Jones index rose 0.17%, the S&P 500 was up 0.07% and the NASDAQ Composite rose 0.12%.
Sentiment for European stocks was bearish, pushing shares across the region lower with the blue chip STOXX 50 index down 1.09% ahead of US trading. Volatility jumped on the wide market sell-off, modestly lifting recent depressed trading activity.
Some of the sectors that fared the worst in Europe include the basic resources, banks and oil and gas. The indices representing these sectors were down 2.54%, 1.17% and 1.54%, respectively. Basic metal stocks slid following a plunge in prices of basic metals over the US-North Korea tensions, while lower oil prices induced a negative sentiment in the energy sector.
Among individual stocks that led fallers Dixon Carphone (down 7.83%), Tullow Oil (down 5.51%), SBM offshore (down 4.84%) and ArcelorMittal (down 4.01%) stood out. Dixon Carphone’s share price was dragged lower amid the recommendation downgrade by Exane BNP Paribas. The bank’s analysts don’t see any catalysts for the company, especially its mobile phone business and project issues with profit and cash generation.
Among US stocks, retail sector has been hammered towards the end of this week due to negative sentiment following big-stock earnings. The share prices of Macy’s, Kohl’s and Dillard’s plunged yesterday following pre-market earnings. Today’s rout among retailers continued with JC Penney disappointing investors with poor quarterly profit performance and same-store-sales. JC Penney’s share price plunged 23% with high short-interest on the stock, signaling bear sentiment. Next week, Wal-Mart and Target are due to report earnings and questions loom whether they would be able to reverse the so far disappointment. Sole outperformer in this sector is Nordstrom, the high-end department store that surprised investors with better than expected same-store sales. A beat in like-for-like sales growth (a 1.7% gain against the expected 0.5% decline) helped drive the stock 1.52% higher in pre-market trading.
Other stocks that could have high trading activity today include Snap and Nvidia. Shares of Snap fell 11.04% in pre-market trading following last night’s results. The company disappointed by delivering worse results than expected, mostly slower pace of new users. Nvidia’s share price was also down 4.94% before the bell as its data center business got investors worried.