Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Stocks Slide As Bullish Sentiment Disappears, Market Top?

By CMC Markets (David Madden)Market OverviewNov 17, 2017 16:33
Stocks Slide As Bullish Sentiment Disappears, Market Top?
By CMC Markets (David Madden)   |  Nov 17, 2017 16:33
Saved. See Saved Items.
This article has already been saved in your Saved Items


Stocks are subdued as traders can’t make their minds up about the future direction. Stocks were in the red in early trading and now they are only slightly lower on the day. Dealers are wondering if the sell-off that begun last Thursday could continue in the short to medium term. The fact that yesterday’s bullish sentiment wasn’t replicated today could be a sign that markets may turn over next week. Buying the dip has been a popular strategy in recent months, but on this occasion there isn’t the same optimism. Traders have been talking about a market top for a long time, and in light of the recent declines we may have seen the highs of the year.

Carillion (LON:CLLN) continue to have a rough ride as the company has warned it could breach its covenants next month. The update also stated that profits would be lower than previously forecast. The construction company has had a severe cash-flow problem recently, and now that it may break its covenants next month investors are running scared. The stock is 90% year to date.

B Sky B (LON:SKYB) shares are up 4.1% as Comcast (NASDAQ:CMCSA) and Verizon Communications (NYSE:VZ) have expressed an interest in buying the assets of Twenty-First Century Fox (NASDAQ:FOX) – which own a 39% stake in B Sky B. The fact that two companies are eyeing Fox’s assets makes it better for B Sky B shareholders as a bidding war may ensue.


US equities are slightly in the red as the yesterday’s buying momentum has disappeared. Traders are still mindful of the sell-off that stated in Japan last Thursday, and they are looking to trim their position ahead of the weekend for fear the next round of selling could start next week.

Foot Locker (NYSE:FL) posted third-quarter earnings per share of 87 cents, while analysts were expecting 80 cents. Comparable-store sales fell by 3.7% in the-quarter. The company’s share price has been hit over the year for fear that Amazon (NASDAQ:AMZN) would start encroaching on their business, so when the EPS topped estimates, the share price jumped 24%.

The latest housing data from the US was impressive as the housing starts and building permits jumped. In October, housing starts were 1.29 million, while the consensus was for 1.18 million Building permits rose to 1.29 million from 1.21 million. This is further proof the US economy is motoring along nicely.

Tesla (NASDAQ:TSLA) shares are up 1.6% after the company revealed its electric truck last night. The vehicle will be able to operate 500 miles, and a 30 minute charge at a ‘megacharger’ will allow for another 400 miles. The update also showed cased a new roadster – which will have a range up to 600 mile.


EUR/USD is up on the day as the slide in the greenback is helping the single currency. The European Central Bank (ECB) President, Mario Draghi gave a speech in Frankfurt. Mr Draghi talked about how the eurozone economy was recovering, but still expressed concern for inflation. The central banker stated that a loose monetary policy was needed to keep inflation up.

GBP/USD is largely unchanged on the day, even though we have seen a broad decline in the US dollar. There wasn’t any major economic indicators from the UK today so volatility has been low. This week saw the announcement of some encouraging economic indicators from the UK. Inflation held steady, while wages and retail sales nudged up – this bodes well for this British economy. The pound has been in an upward trend versus the US dollar for the past 8 months, and the bullish outlook is likely continue.


Gold is slightly higher on the session as the softer US dollar has helped the metal. But as per usual the metal is still trading within as tight range. The cooling of global stock markets has also assisted gold, but it would appear that it is going to remain range bound. A move north of $1306 or a move below $1261, would be required for the metal top snap out of its current range.

WTI and Brent Crude are rallying today after Saudi Arabia stated OPEC should look to extend the co-ordinated production cut beyond the March 2018 deadline. The major oil producers are meeting later this month are the energy market has been pushing higher as talks of an extension have been doing the rounds. Saudi Arabia doesn’t always keep its promises, but traders don’t want to be against them.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Stocks Slide As Bullish Sentiment Disappears, Market Top?

Related Articles

Ipek Ozkardeskaya
BoE Hawks Can’t Save The Pound By Ipek Ozkardeskaya - Aug 18, 2022

The equity rally in the US didn’t pick up momentum after the Federal Reserve (Fed) released its latest meeting minutes, which sounded more hawkish-than-expected, or more...

Stocks Slide As Bullish Sentiment Disappears, Market Top?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email