The Stock Market Today & What You Need To Know For January 2, 2019

The Stock Market Today: What To Know For Wednesday January 2, 2019

stock market today January 2 2019



The stock market today is likely to continue to slide at least for the early morning session on Monday, January 2. Though today markets the first trading day of 2019, the bulls are taking a back seat early on.

China Pushes Economic Growth Sentiment Lower

China helped to push sentiment lower in the stock market today as factory activity declined for the first time in over a year and a half. In December, China’s factory activity was weighed down by the US-China trade uncertainty, which was in addition to the slower economic growth outlook for the global economy.

Is Energy Set To Head Lower; Again?

Continuing the way Oil prices ended in 2018, the new year has brought more weakness. During Wednesday’s early session, prices declined by more than 1% with much being attributed to China’s factory slowdown. Easily the biggest importer of oil, China slowing down does not bode well for the near-term future of oil prices.

Oil futures were trading just slightly higher than $45 as of 7:12 AM EST on January 2.

Stock Market Futures Point To A Lower Open

Bearish sentiment continues to impact markets into the new year. The data from China has not helped things either, and the ongoing dispute for US-China trade has begun to take a toll. US stock market futures pointed to a negative open. As of 6:50 AM EST, the Dow 30 was down 343 points or -1.47%, S&P 500 futures were negative by 36.75 points or about -1.46%, the SmallCap 200 was down by nearly 1.3%, and Nasdaq futures were walloped, down 2.22% or roughly 140 points.

Of course, this can all change at the drop of a hat or well-timed tweet as we all saw in late 2018. The market has responded in volatile fashion especially when people like the US President makes a statement on social media. The stock market today doesn’t seem to have reacted favorably to any recent Presidential tweets.

The Government Is Still Shutdown

The US Congress is looking to reconvene today. There are no apparent signs of an end to the “Partial Government Shutdown.” The big hangup is this wall. The US President Donald Trump has requested the approval of a $5 billion funding for the US/Mexico border wall and Congress isn’t budging right now. Thought to have been Mexico’s responsibility a few years ago, now it appears as though the US will formally foot the bill for “the wall.”

Kim & Donny

The US President tweeted on January 1:

“Kim Jong Un says North Korea will not make or test nuclear weapons, or give them to others – & he is ready to meet President Trump anytime.” PBS News Hour. I also look forward to meeting with Chairman Kim who realizes so well that North Korea possesses great economic potential!

Even so, there seems to be some miscommunication still. The reason why has much to do with what the “Supreme Leader” told his people in his January address:

“I am willing to sit with the U.S. president any time in the future and will strive to produce outcomes that would be welcomed by the international community,” Kim said. “However, if the United States does not deliver its promise and misjudge our people’s patience, making unilateral demands to continue sanctions and put pressure on us, we will have no choice but to seek a new path to protect the country’s independence, interests and peace on the Korean Peninsula.”

Doesn’t necessarily convey the same confidence that President Trump has alluded.

Joe Samuels
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