Good morning a warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im Morgan Brennan. Good morning great to have you with us its not a great picture for the futures market this morning. Big selloff in asia has infected the rest of the world. Futures pointing lower to the tune of 70 points. Less pronounced in the Asian Session or the european session. Nasdaq down 23 the s p down 6 yesterday the broad summary was that a small tech recovery was not enough to spur the other indices higher we were down 0. 4 for the dow and s p. The nasdaq did outperform but down slightly. 10 of 11 s p sectors were lower. Only tech was higher tenyear treasury note has been slipping in terms of yield this week so a riskoff sentiment. A bit of buying of the tenyear bond has pushed yields down to 2. 33 this morning. Over the weekend we pushed above 2. 4. Its been a steady slippage. A bit of buying of bonds over the course of the week turning to asian equities red arrows on that continent lower trading
The opening bell, piercing thh 26,000. It seemed like the he will rally was entering a new phase. But then a turn. And then a collapse. The rally was no more. The indexes turned negative. And when the closing bell rang, the dow swung nearly 400 points in total, its biggest reversal in yearly two years. At the close, the Dow Jones Industrial average fell ten points to 25,792. The nasdaq was off 37, and the s p 500 drope wild day was a he scratcher. Bob watched from the new york at it a color coaster ride for the markets with the cow opening at a new record of 26,000. But shortly after that milestone, with the dow up 283 points in the middle of the morning, investors just seemed to lose interest and the markets drifted lower into the afternoon with the dow ending fractionally negative. What happened . Shutdowns later on. Up y but for most traders the markets reached such lofty levels it was logical to take profits. You cant blame them for thinking this way. Much of the early rally was fu
And the administrations plan to ease regulation. Have a look at european equities, a different color on the wonderful gmm function. Yesterday this was a sea of red. The biggest increase for europes benchmarks is stoxx 600 since april of 2017. The gauge is rising for the first day in seven. We saw a big decline yesterday of the magnitude of 2. 4 , to the love was level since the end of august. Oflowest level since the end august. Currencies falling against the dollar, bond yields declining and the german tenyear is higher. Lets get to some of the earnings, profits fell more than expected last quarter from a company that lost patent protection when its blockbuster insulin, the impact from recently made acquisitions. Billione more than 16 of deals last month and shares down 1. 5 . Rio tinto with shares up 9 10 of 1 , the number two minor. It raised dividend payments. It says it will extend a Share Buyback program, responding to a request from shareholders like blackrock. Underlying profit
The dow is the story today bet than 1 gain the russell, small caps trailing a little bit bob pisani on the floor with more were reversing that trend. We used to sell off in the middle of the day, but friday we diplomat and today we are holding onto our highs its very important. Three trends ive seen thats happened in the last two days. Number one, the healing continues. S p regained 20 of the losses were finally seeing new highs appear and familiar names are on that list. Finally, the Leadership Group since the bottom is the Leadership Group getting us into this, and that is cyclical stocks look whats leading today. Boeing, 3m, apple, cisco, these are all cyclical names lacker eds, coke, mcdonalds, johnson johnson, General Electric not doing too much overall s p new highs, old faces weve seen time and time again on the list amazon, netflix, adobe, hewlettpackard, jpmorgan chase. We continue to see the rally move forward not going back to that idea of selling off late in the day. Well s
In the u. S. , which we had to reduce our tax asset, reducing completely our tax level in the u. S. , with Significant Growth of our net profit. Swiss re says it is considering a partnership with softbank after better than expected profits and returning more cash to shareholders. We feel comfortable that we have the ability to return funds to share hoholders. And a number of negative earnings limit cap gains in europe as James Bullard tells cnbc that rates should not go up too quickly. The idea that we have to go 100 basis points in 2018, that seems like a lot to me thats price for perfection. Everything would have to go just right. The economy would have to surprise on the upside a bunch of times in the year im not sure thats a good way to think about 2018. Good morning flat open so far across europe the stoxx 600 slightly into negative territory, but not by a massive, massive margin. Its down less than 0. 1 we look at the individual markets, you can see its a bit of a mixed picture t