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“If you are first you are first. If you are second, you are nothing.” – Pele
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
We’re looking at another negative equity market open today, and once again, the Dow is leading the way lower. The E. coli outbreak tied to McDonald’s (MCD) has that stock down 7%, which works out to more than half of the Dow’s pre-market losses. Along with the negative news from MCD, Starbucks (SBUX) lowered guidance, so it’s not shaping up to be much of a good morning for companies tied to the fast food sector.
The only economic report on the calendar this morning is Existing Home Sales at 10 AM, but there have been plenty of earnings reports in the pre-market with more to come after the close.
The last week has been mixed for equities on a global scale. As shown in the snapshot from our Trend Analyzer, emerging market equities have been the top performer narrowly edging out US stocks with a gain of 0.69%. These are also the only two regions with positive returns as European, Latin American, and Asia Pacific stocks are all lower. With most regions trading lower, the Developed World ex-US ETF is also down 0.71%.
It hasn’t just been the last week where these regions have underperformed. On a YTD basis, the US has rallied 23.5% while emerging markets are up just under 14%. All four of the other ETFs, meanwhile, are up less than 10%, or in the case of Latin America (ILF) down over 10%.
Looking at the charts of all six ETFs over the last year, EEM and SPY have maintained their rallies and trade above their 50-day moving averages. The four other ETFs, however, look less promising from a technical perspective. ILF has been below both its 50 and 200 DMAs for several days now while SPDW, VGK, and VPL all broke below their 50-DMAs in the last few days.