Today's sell-off is a good entry point for year-end rally: Tony Dwyer
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- เผยแพร่เมื่อ 15 ก.ย. 2024
- Canaccord Genuity's Tony Dwyer on today's pullback and the opportunity it presents. With CNBC's Melissa Lee and the Fast Money traders, Guy Adami, Tim Seymour, Karen Finerman and Dan Nathan. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
U.S. stocks began the week deeply in the red as investors continued to flock to the sidelines in September amid several emerging risks for the market.
The S&P 500 fell 1.7% to 4,357.73, posting its worst daily performance since May 12. It was a broad sell-off with each of the main 11 sectors of the benchmark registering losses. The Dow Jones Industrial average lost 614.41 points, or 1.8%, to 33,970.47 for its biggest one day drop since July 19. The tech-heavy Nasdaq Composite dropped 2.2% to 14,713.90.
One optimistic sign from Monday’s rout: The Dow closed well off its session low. The 30-stock average was down 971 points at it low for the day.
There were a number of reasons for the sell-off:
Investors fear a contagion sweeping financial markets from the troubled China property market. Hong Kong equities saw a big sell-off during the Asia trading session on Monday. The benchmark Hang Seng index plunged 4% with embattled developer China Evergrande Group on the brink of default.
The Federal Reserve begins a two-day meeting Tuesday and investors are worried the central bank will signal it’s ready to start pulling away monetary stimulus amid surging inflation and improvement in the job market.
Covid cases because of the delta variant remain at January levels as colder weather approaches in North America.
September has the worst track record of any month, averaging a 0.4% decline, according to the Stock Trader’s Almanac. History shows the selling tends to pick up in the back half of the month.
Investors are also concerned about brinkmanship in DC as the deadline to raise the debt ceiling approaches. Congress returned to Washington from recess rushing to pass funding bills to avoid a government shutdown.
Monday’s sell-off briefly pushed the S&P 500 5% below its last record on an intraday basis. It’s been a long time since the market has faced a sell-off of this magnitude as investors continued to buy the dip with fiscal and monetary stimulus backstopping the markets. The index closed the session 4.1% below its record high from Sept. 2.
Stocks linked to global growth led the broad-based sell-off Monday. Ford lost more than 5%. General Motors and Boeing fell 3.8% and 1.8%, respectively. Steel producer Nucor shed 7.6%
Energy stocks tumbled as WTI crude oil fell nearly 2% on concerns about the global economy. The energy sector slid 3%, becoming the worst-performing group among the 11 S&P 500 groups. APA shed more than 6%, while Occidental Petroleum and Devon Energy both dropped over 5%.
Bond prices gained as investors sought safety. The move pushed the 10-year Treasury yield down by 6 basis points to 1.31%. (1 basis point equals 0.01%)
Big bank stocks took a hit as the falling rates may crimp profits. Bank of America and JPMorgan Chase dropped 3.4% and 3%, respectively.
“We think the mid-cycle transition will end with the rolling correction finally hitting the S&P 500,” wrote Mike Wilson, Morgan Stanley’s chief U.S. equity strategist. “We point to downside risk to earnings revisions, consumer confidence and PMIs.”
Wilson said he believes a “destructive outcome” is looking more likely that results in a pullback of 20% or more. On Friday, University of Michigan’s September consumer sentiment index came in at 71, just slightly above the August level that was the lowest in 9 years.
The Cboe Volatility index, Wall Street’s fear gauge, jumped above the 28 level on Monday, the highest since May.
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*Rich people plays the money game to win.* *Poor people plays the money to not lose.* *The goal of the truly rich people is to have massive wealth and the poor sees a surplus as an opportunity for consumption instead of investing it.* *change your mindset and do what the rich does,* *which is investing,* *investing and investing.*
That's right.
Investment should be what every wise person should engage in.
Yeah. Poor people plays the game not to lose because they don't have much to lose on the same game.
So they have to be sure
Talking about investment. __I'm even afraid of anything concerning lnvesment..but a lot of people are benefiting from it. What am I doing wrong?__.
Let me know if Jerome Powell and his BROS at the Fed were buying today. Then I will buy. I wish they would tweet their buys and sells so we could all time the market like those in the 0.001%.
I don't want a year end rally, I want a real pullback for cheaper shares. Whiny wall street can't lose ever holy crap
THE ONLY REASON SMALL CAPS ARE DOWN IS BECAUSE THEYRE ALL BEING NAKED SHORTED
Do the opposite of Jim Cramer and do the same as this man. Easy money
Pullback? More like dead cat bounce. Buy storable food, water filtration and ammunition.
The building is on fire, great time to run inside!
Yeah totally agree that. Just bought some.
Not touching anything until there's a healthy 10% correction. We touched 5% in the S&P today, but I think we'll see another 5% this week into next week with the doom and gloom of the Fed Meeting. That said, I'm only interested in profitable companies that aren't subject to the Chinese market. I think that there's still great companies within the Chinese marketplace, but I don't think they're going to recover anytime soon.
No capitula
I'm waiting for 7 pct at least
Yes AMC AMC
FIRST WE RUN AMC TO 500K, THEN WE DESTROY THE US ECONOMY!
Where’s Tom Lee lol?
everyone is selling, just not trying to trigger the algos!
Not yet, they are trying to entice people with no cash abilities to drown more deeper into debts and perhaps collapse. It is always beneficial for extremely wealthy to stay wealthy and keep the poor beneath. Do your due diligence, take a stock market education and then invest.
go cash before the crash.
Great entry point if you want bagholding
This didn't age well
Not even a scratch on the surface of this bubble.
Market is already up …lol…1% s&p down and media crying…market will go up
Lolll I know right like cmon it’s only down 2% that could be made back so easily the s&p shouldn’t even be day traded like that it’s meant to hold for a long time so all this noise means nothing because if you hold for long enough you should almost always have more than you started with
Good thing there's no place else to put your money.
2 words for you: "Exit Liquidity"
Warren Buffet: stop being a lil B####, and start buying the dip
Its great unless pullback continues?
Lunatic
lol, I didn't know China was part of USA??? and stock market went down today :))))
Big investors sitting on pile of cash…market will go much higher…
“Equities are too expensive . There’s no good entry point.” Well…now you have one.
At the least HK will implode
Wow this is the first time I hear him bullish.
agent 47
Talking head talking about buying more stocks
Just do the opposite of what they say here and you should be good
Another bear that's capitulated
Tony usually has no idea what he talks about, I March 2020 he kept on harping on double bottom test of lows which never happened and instead it was V shaped recovery!
Cash Out 👎👎👎
NOPE, GOING LOWER! A LOT LOT LOWER!
NOPE, GREAT DEPRESSION 2.0 COMING BY END OF OCTOBER MARK THIS POST!!!