News / Economy

    US Markets Claw Back Gains, But Expect More Choppy Trade

    Traders work on the floor of the New York Stock Exchange, Feb. 19, 2016.
    Traders work on the floor of the New York Stock Exchange, Feb. 19, 2016.

    Friday closed out the best week for the S&P 500 since November, with the index gaining 2.8 percent as crude oil and banks regained some losses.

    The rise led traders to wonder whether stocks are bouncing back from their dip at the start of the year, or whether low oil prices and weak global demand will continue to drag down the markets.

    “I think there is more volatility in these markets, and what you may see is choppy trade with 200- to 300-point swings in the Dow and 40 in the S&P 500 going forward, for at least the next few months, mostly because of the instability in oil supply and demand fundamentals,” said Peter Costa, governor with the New York Stock Exchange and president of Empire Executions. “Once that stabilizes, the market will follow.”

    WATCH: Related video report of interview with Peter Costa

    US Markets Claw Back Gains, But Continued Volatility Expectedi
    X
    Jill Malandrino
    February 22, 2016 10:19 PM
    Friday closed out the best week for the S&P 500 since November, with the index gaining 2.8%, as crude oil and banks regained some losses. The rise has led traders to wonder whether stocks are bouncing back from their dip at the start of the year, or if low oil prices and weak global demand will continue to drag down the markets. Peter Costa, Governor with the New York Stock Exchange and President of Empire Executions, told VOA the choppy trading is likely to continue.

    So far this year, the S&P 500 is down by more than 6 percent. The energy and financial sectors are down 74.5 percent and 17.6 percent, respectively, according to S&P Global Market Intelligence.

    “For a confirmation of a rally, we need to see the financial sector participate,” Costa said. “You have to remember that the market rallied for 6.5 years, and from a technical trading perspective, this pullback is what we needed to wash out some of the bad seeds and reinvest in the good ones.”

    Trading week ahead

    Investors are focused on consumer spending next week as heavyweights Home Depot, Macy’s, Lowe’s and Target release financial reports. In addition, the Consumer Confidence report will be released Tuesday, a key piece of data that influences the stock and bond market because spending drives nearly two-thirds of the economy.

    “Consumer discretionary [spending] will be a key sector to watch as the fourth-quarter earnings season winds down, since it is once again among the leaders, currently pegged at 11.0 percent earnings growth and second only to the telecommunications sector that is tracking at 19.9 percent,” Lindsey Bell, senior analyst at S&P Global Market Intelligence, said in a research report.

    American retailing giant Wal-Mart reported earnings below estimates and lowered its full-year sales guidance, reflecting what some see as part of the ongoing shift to online shopping and growing competition from Amazon.com, which keep shoppers at home, away from stores.

     “Amazon is certainly an ongoing pressure. The fact of the matter is e-commerce initiatives are costing money at this point for big-box retailers. Wal-Mart online sales were disappointing,” said Rob Campagnino, consumer sector strategist for SSR.

    Outside the consumer sector, traders have several key pieces of data to contend with in the week ahead. Most important is the gross domestic product report on Friday morning, which is the all-inclusive measure of economic activity. This will also be watched by the Federal Reserve as it uses key data points such as this to help determine monetary policy, the most influential factor in the marketplace.

    You May Like

    Can EU Survive a Brexit?

    Across Europe politicians are asking if the British vote to leave the European Union will set in motion dynamics that will see other member states leave too

    Video Entrepreneurs Tackle Sexual Harassment, Rural Health Care at Global Summit

    VOA talks to enterprising business people from India, Nigeria, Myanmar about their programs to help their respective countries overcome obstacles

    Key African Anti-Venom About to Permanently Run Out

    The tale of Fav-Afrique’s demise is a complicated one that reflects a deeper crisis brewing in global public health

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Britain’s Vote to Leave EU Sends Shockwaves Through Global Marketsi
    X
    June 24, 2016 10:43 AM
    Britain’s historic decision to leave the European Union is sending shockwaves through global markets. Markets from Tokyo to Europe tumbled Friday under the uncertainty the ballot brings, while regional leaders in Asia took steps to limit the possible fallout. VOA’s Bill Ide has more from Beijing.
    Video

    Video Britain’s Vote to Leave EU Sends Shockwaves Through Global Markets

    Britain’s historic decision to leave the European Union is sending shockwaves through global markets. Markets from Tokyo to Europe tumbled Friday under the uncertainty the ballot brings, while regional leaders in Asia took steps to limit the possible fallout. VOA’s Bill Ide has more from Beijing.
    Video

    Video Tunisian Fishing Town Searches for Jobs, Local Development Solutions

    As the European Union tries to come to grips with its migrant crisis, some newcomers are leaving voluntarily. But those returning to their home countries face an uncertain future.  Five years after Tunisia's revolution, the tiny North African country is struggling with unrest, soaring unemployment and plummeting growth. From the southern Tunisian fishing town of Zarzis, Lisa Bryant takes a look for VOA at a search for local solutions.
    Video

    Video 'American Troops' in Russia Despite Tensions

    Historic battle re-enactment is a niche hobby with a fair number of adherents in Russia where past military victories are played-up by the Kremlin as a show of national strength. But, one group of World War II re-enactors in Moscow has the rare distinction of choosing to play western ally troops. VOA's Daniel Schearf explains.
    Video

    Video Experts: Very Few Killed in US Gun Violence Are Victims of Mass Shootings

    The deadly shooting at a Florida nightclub has reignited the debate in the U.S. over gun control. Although Congress doesn't provide government health agencies funds to study gun violence, public health experts say private research has helped them learn some things about the issue. VOA's Carol Pearson reports.
    Video

    Video Trump Unleashes Broadside Against Clinton to Try to Ease GOP Doubts

    Recent public opinion polls show Republican Donald Trump slipping behind Democrat Hillary Clinton in the presidential election matchup for November. Trump trails her both in fundraising and campaign organization, but he's intensifying his attacks on the former secretary of state. VOA National Correspondent Jim Malone reports.
    Video

    Video Muslim American Mayor Calls for Tolerance

    Syrian-born Mohamed Khairullah describes himself as "an American mayor who happens to be Muslim." As the three-term mayor of Prospect Park, New Jersey, he believes his town of 6,000 is an example of how ethnicity and religious beliefs should not determine a community's leadership. Ramon Taylor has this report from Prospect Park.
    Video

    Video Internal Rifts Over Syria Policy Could Be Headache for Next US President

    With the Obama administration showing little outward enthusiasm for adopting a more robust Syria policy, there is a strong likelihood that the internal discontent expressed by State Department employees will roll over to the next administration. VOA State Department correspondent Pam Dockins reports.
    Video

    Video Senegal to Park Colorful ‘Cars Rapide’ Permanently

    Brightly painted cars rapide are a hallmark of Dakar, offering residents a cheap way to get around the capital city since 1976. But the privately owned minibuses are scheduled to be parked for good in late 2018, as Ricci Shryock reports for VOA.
    Video

    Video Florida Gets $1 Million in Emergency Government Funding for Orlando

    The U.S. government has granted $1 million in emergency funding to the state of Florida to cover the costs linked to the June 12 massacre in Orlando. U.S. Attorney General Loretta Lynch announced the grant Tuesday in Orlando, where she met with survivors of the shooting attack that killed 49 people. Zlatica Hoke reports.
    Video

    Video How to Print Impossible Shapes with Metal

    3-D printing with metals is rapidly becoming more advanced. As printers become more affordable, the industry is partnering with universities to refine processes for manufacturing previously impossible things. A new 3-D printing lab aims to bring the new technology closer to everyday use. VOA's George Putic reports.
    Video

    Video Big Somali Community in Minnesota Observes Muslim Religious Feast

    Ramadan is widely observed in the north central US state of Minnesota, which a large Muslim community calls home. VOA Somali service reporter Mohmud Masadde files this report from Minneapolis, the state's biggest city.
    Video

    Video During Ramadan, Faith and Football Converge in Lebanon’s Megadome

    In Beirut, a group of young entrepreneurs has combined its Muslim faith and love of football to create the city's newest landmark: a large, Ramadan-ready dome primed for one of the biggest football (soccer) tournaments in the world. But as the faithful embrace the communal spirit of Islam’s holy month, it is not just those breaking their fasts that are welcome.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8780
    JPY
    USD
    105.69
    GBP
    USD
    0.6725
    CAD
    USD
    1.2746
    INR
    USD
    67.302

    Rates may not be current.