Thursday, November 15, 2018
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Market Digest Online THURSDAY, NOVEMBER 15, 2018..... Stocks fell on Wednesday as shares of Apple rolled over and dipped briefly into a bear market before recovering. A decline in bank shares also pressured the broader market.

The S&P 500 closed down 0.8 percent, clinching its fifth straight day of losses. It's now in the red for the month of November following October's 7 percent rout. The Dow Jones Industrial Average finished 206 points lower on Wednesday. The Dow fell more than 400 points from its highs of the day. The Nasdaq Composite pulled back 0.9 percent.

Apple fell 2.8 percent and traded 20 percent below its all-time high, dipping into a bear market. The decline comes after Guggenheim downgraded the stock and UBS cut its iPhone estimates. Investors have been worried the company's iPhone sales will slow down in the near future. The stock had traded higher earlier on Wednesday and closed 19.9 percent from its record high reached earlier this year.

The SPDR S&P Bank ETF (KBE) fell 1.9 percent, erasing earlier gains, after Democratic Rep. Maxine Waters said the Trump administration's efforts to curb banking regulations "will come to an end." Goldman Sachs, J.P. Morgan Chase and Citigroup all traded lower. Waters is expected to take over as chair of the House Financial Services Committee.

"I believe the stock market is experiencing is a continuation of the selling pressure that began in early October," said Robert Pavlik, chief investment strategist at SlateStone Wealth. "If investors don't understand what was behind the selling or what started it then there is hesitation to buy and with continued pressure it leads to an unwillingness to hold stocks especially as the volatility and selling pressure continues."

Market sentiment was also hurt by comments from Rep. Bill Pascrell, D-NJ. In an interview with Bloomberg News, Pascrell said the updated trade deal between the U.S., Canada and Mexico needs to be changed before it can pass through Congress. There needs "to be not only changes in the legislation but more enforcement," said Pascrell, who is in line to be the head of the House Ways and Means subcommittee on trade.

Wednesday's moves come after a volatile session on Tuesday, with the Dow falling just a touch above 100 points by the close, despite a rise earlier in the session in excess of 100 points. Reports of renewed trade talks between the U.S. and China failed to lift sentiment on Wednesday, with traders keeping a wary eye on volatility in the oil market.

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