Market Brief: Major Indices See Worst 2-Day Start to a Quarter Since 2008

See a summary of the top market themes and trends from today's US trading session!

  • FX: The safe haven Japanese yen was the strongest major currency on the day, while the oil-sensitive loonie fell the most, reaching a 1-month low against the US dollar. Meanwhile, AUD/USD continues to probe its lowest levels since the Great Financial Crisis.
  • US data: The September ADP Employment report printed at 135k vs. 140k eyed, though there were substantial negative revisions to the previous month’s report.
  • Commodities: Gold gained 1% while oil slumped -2% in its ninth consecutive loss as oil inventories rose by more than expected.
  • US indices closed sharply lower on the day, marking the worst 2-day start to a quarter since 2008 (see here and here for more)
  • All sectors fell on the day, with REITs (XLRE) falling the least and Energy stocks (XLE) losing the most ground.
  • Stocks on the move:
    • Online brokers extended yesterday’s drop as TD Ameritrade (TD, -3%) followed Charles Schwab (SCHW, -3%) in cutting commissions for online trades to $0. All eyes now turn to E-Trade (ETFC, -4%)
    • Ford (F, -3%) and General Motors (GM, -4%) both fell after reporting weak quarterly auto sales figures.
    • Johnson and Johnson bucked the broader selling trend to gain 2% after the company cut a deal to avoid a trial over its involvement in the opioid epidemic.

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