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Mar 19, 2018

The Washington Post | Money Beat. March 19, 2019.

Morning MoneyBeat is the Journal’s pre-market primer. To receive the newsletter via email, click here.
Market Snap at 03/19/2018 07:43:29 AM ET
S&P 500 Futures -0.57%
DJIA Futures -0.55%
U.S. 10 Year -5/32
WSJ Dollar Index 0.03%
Crude Oil -0.43%
Gold -0.15%
FTSE 100 -1.24%
Nikkei 225 -0.9%
DAX -0.88%
Hang Seng 0.04%
CAC 40 -0.7%
Shanghai 0.29%

Overnight Developments

  • Global markets fell on Monday in a week when the Federal Reserve is expected raise interest rates. S&P 500 futures pointed to a 0.6% fall at the open.
  • The Stoxx Europe 600 was recently down by 0.6%.
  • Earlier, Japan’s Nikkei Stock Average closed down 0.9% amid political headwinds for Prime Minister Shinzo Abe.
  • The Breakfast Briefing

    Market volatility may have shaken investors this year, but it hasn't scared them away.
    Measures of market sentiment still look elevated, even after major stock indexes dropped by more than 10% last month. Consumers put the probability of a rise in stock prices over the next year at more than 60%, according to sentiment survey data released by the University of Michigan on Friday.
    That gauge remains near the record high of almost 67% from January, suggesting that the market sentiment hasn't been dented much by recent volatility. By contrast, that gauge fell back toward 50% when stocks fell into correction territory in 2016.
    Investors watch sentiment because it tends to be a contrarian indicator. Buyers often get euphoric when they start to think the market will only go up, sometimes a prelude to a sharp decline once the rally exhausts itself, as it did in January. On the contrary, extreme bearishness can be a buying opportunity, bargain hunters say. With the market churning mostly sideways in recent weeks, sentiment doesn’t appear to be at either extreme.
    But with the S&P 500 trading just 4.2% below its all-time high in January and valuations high by historical standards, many are on the lookout for signs of whether another market selloff is in store. Some see the elevated sentiment as a warning sign.
    "Sentiment is not at all washed out and as such only a brave soul would suggest we are anywhere close to a capitulation point," said David Rosenberg, the chief economist and strategist at Gluskin Sheff.
    Other gauges show the bulls are still dominant, even if they've become less so since January. A report found only 6% of investors pulled money from stock-related accounts during last month's selloff and 60% intentionally did nothing.
    A Bank of America Merrill Lynch indicator showed sentiment ticked lower but remained bullish. An American Association of Individual Investors survey showed bulls still outnumber bears, though the share of bullish investors has moderated since January.
    For some market watchers, these measures suggest more volatility may be in store.
    What are you doing with your stock investments? Let the author your thoughts at

    Investors Are Still Quite Bullish

    By Ben Eisen

    Daily Factoid

    On this day in 1792, Wall Street experienced its first-ever market crash as Treasury bonds lost 10% of their value and shares of the Bank of the United States fell 12%.

    Key Events

    There are no key events today.

    Stocks to Watch

    CSRA—Up 2.6%: CACI International made a roughly $7.2 billion bid to buy IT provider CSRA, in an attempt to break up its sale to General Dynamics.
    Facebook—Down 3.5%: The social-media giant said it suspended Cambridge Analytica, a data firm that helped President Donald Trump with the 2016 election, after learning that it misled it and violated its policy for handling user data.
    Alibaba—Down 1.5%: Alibaba is investing another $2 billion in e-commerce subsidiary Lazada Group and naming Lucy Peng as its chief executive.
    GrubHub—Down 2.3%: The online food delivery firm is expanding its partnership with Yelp, which will more than double the number of U.S. restaurants on its website and app.

    Number of the Day

    Women working at the main U.K. arm of Goldman Sachs make 36% less than men, according to a filing, reflecting a dearth of females in the bank’s senior ranks and laying bare a continuing challenge for Wall Street as a whole.​

    Must Reads

    How the Bear Stearns Meltdown Wrecked Something More Valuable Than Money: The financial crisis shattered investors' trust in markets.
    No Profit? No Problem! Loss-Making Companies Flood the IPO Market: More than three-quarters of the 108 companies that completed IPOs in 2017 reported per-share losses in the 12 months leading up to their debuts.
    A Deeper Look at the Flattening Yield Curve: The long-awaited repricing of the U.S. bond market has stalled once again.
    Harvard’s Nutty Idea: Cracking Into the Almond Market: Almonds are shaping up to be a more lucrative endeavor for pension funds, endowments and other institutions with very long-term investment horizons.

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