Closing Bell: Markets Fall on Geopolitical Worries

Markets stayed in the red in Thursday’s session amid geopolitical concerns and earnings that disappointed the market. The S&P 500 ended down 0.28%, the Nasdaq-100 lost 0.41%, the Dow Jones fell 0.54%, and the Russell 2000 was the only index that ended higher, up 0.24%. Despite the fears, gold prices ended basically flat, though crude oil rose, and Crypto saw a green day, as price is finding consolidation around the mid-60K range.

U.S. Hints at Potential Strike on Iran

The U.S. is amassing forces in the Mideast, creating the potential for a major strike against Iran. The buildup is the biggest since the invasion of Iraq. This comes as Iran and the U.S. negotiate around its nuclear program. President Trump said we would find out if there was a deal “over the next probably 10 days.” Concern around conflict pressured stocks and helped boost oil prices – around 20% of the world’s oil goes through the Strait of Hormuz, which Iran could close.

Walmart (WMT) Earnings

Walmart (WMT) dominated market discussion after its earnings report. The company beat estimates, but guidance disappointed, although its CFO called it “conservative” and hopes to outpace their projections. A new CEO is beginning his tenure just as Amazon (AMZN) beat Walmart on sales for the first time ever, taking its crown as the biggest U.S. company by revenue. However, advertising revenue is growing, which is a high margin business, and it continues to see strong demand on all sides of the K-shaped economy.

Tomorrow’s Economic Data

• 8:30 AM ET: GDP, Personal Income & Outlays
• 9:45 AM ET: PMI Composite Flash, Fed’s Bostic Speaks
• 10:00 AM ET: New Home Sales (Delayed), Consumer Sentiment
• 1:00 PM ET: Baker Hughes Rig Count
• 3:30 PM ET: Fed’s Musalem Speaks

Tomorrow’s Earnings

• Premarket: AU, WU
• Postmarket: None

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.