“Seesaw” – Vista Partners Daily Market Recap 12/11/2018
Stocks seesawed on Tuesday before the market closed as investors reacted to a string of headlines. The S&P 500 ended the day just barely in the red with a loss of 0.04% (0.94 points), and the Dow also finished down, dropping 0.22% (53.02 points). The Nasdaq was able to hold onto some gains, as it was up 0.16% (11.31 points as the session closed.
Individual components of the Dow saw fairly mixed results. The Travelers Companies (TRV) had the largest overall change today with a drop of 1.65%. NIKE (NKE) had the second largest movement, but it swung in the opposite direction and ended the day up 1.46%. Boeing (BA) saw shares tumble 1.32%.
Apart from the Dow, Atossa Genetics (ATOS) was able to retain a gain of 1.18% as the market closed.
Today’s volatility is nothing new and could likely become the new normal. Stocks started off the day strong as investors reacted to the news that trade talks may have been advancing while Chinese and US representatives spoke on the phone to discuss the plan moving forward.
They took a sharp downturn, though, after a rough meeting between Democratic congressional leaders and President Trump in which he threatened to shut down the government over funding for the border wall.
VelocityShares Daily 2x VIX ST ETN (TVIX), basically a leveraged “bet” against the broad markets, swung as high as $55.56 & hit a low of $48.61 before settling in at $52.16. Noe this post-closing yesterday at $52.51. Another wild ride that traders are loving!
Chris Rupkey of Mitsubishi UFJ Financial Group, had the following to say about the President’s effect on the market: “From last week’s ‘I am a Tariff Man’ to this week’s ‘I will be the one to shut it down,’ the stock market is swinging crazily in fear of just what the president might tweet or say or do next. Continuous change is not good for stocks as it sows the seeds of uncertainty.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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