*
U.S. equity indexes fall, Nasdaq leads with 1.7% drop
*
Cons disc weakest S&P 500 sector; energy sole gainer
*
Euro STOXX 600 index down ~0.2%
*
Dollar, crude edge up; gold, bitcoin slip
*
U.S. 10-Year Treasury yield rises to ~3.93%
Welcome to the home for real-time coverage of markets brought to
you by Reuters reporters. You can share your thoughts with us at
CONSUMER DISCRETIONARY LEADS WALL STREET'S EARLY LOSSES
(1004 EST/1504 GMT)
Wall Street's three major indexes are lower on Tuesday with
broad declines and particular pressure on retail stocks as Home
Depot and Walmart Inc both issued full-year
earnings guidance that was lower than analysts had expected.
The S&P 500's consumer discretionary index is leading declines, last down 2.1%, while the S&P retail index is down 2.7%.
The sole gaining index among the S&P's 11 major industry
sectors is energy , which is being boosted by rising oil
prices. If their early trading trends continue to the close S&P
500 and Nasdaq would clock three straight sessions of
declines.
The Dow would erase its Friday advance unless it regains some ground.
Here is a snapshot from 1004 AM: (Sinéad Carew)
*****
DOW INDUSTRIALS: GLASS CEILING OR GLASS FLOOR? (0900
EST/1400 GMT)
The Dow Jones Industrial Average , which ended Friday
at 33,827, has essentially gone sideways for more than three
months.
With this, a daily historical volatility measure has now
collapsed to its tightest reading since early-September 2021.
Thus, the blue-chip average appears especially ripe for much
more spirited action, or indeed, a next trend:
Daily Bollinger Band (BB) width has compressed to 0.0207 or
its lowest reading since 0.0205 on September 7, 2021.
Including the September 2021 low, and prior to the current
print, the DJI has seen five sub-0.0400 BB width troughs (four
which preceded declines and one which preceded a rally).
The average immediate decline was as much as 6.2% over the
next 12 trading days. The rally was 6.4% over the next 18
trading days.
Low BB width does not in itself predict direction, and it
could become more compressed. However, with e-mini Dow futures suggesting more than 300 points of downside pressure at
Tuesday's open, the DJI looks poised to test its lower daily BB,
which ended Friday at around 33,570.
In the event the Dow closes below this line, coupled with a
BB width rise, a more sustained downside flurry may ensue.
The DJI has support at its December 22 low of 32,573. The
200-day moving average (DMA) ended Friday around 32,345.
If the DJI can reverse back above its 20-DMA, which should
be around 33,950 on Tuesday, it can instead tilt the blue-chip
average toward an upside range breakout.
(Terence Gabriel)
*****
FOR TUESDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT
- CLICK HERE
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
DJI02212023B Wall Street indexes in the red ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
