No Mueller market bounce | Apple's reinvention

No Mueller market bounce | Apple's reinvention | Avenatti arrested

MON, MAR 25, 2019

EVENING BRIEF

AS OF MON, MAR 25, 2019 • 04:03 ET

DJIA		25516.83
		+0.06%	+14.51

S&P 500		2798.34
		-0.08%	-2.37

NASDAQ		7637.54
		-0.07%	-5.13

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	188.74	-2.31	-1.21%
MSFT	117.66	+0.61	+0.52%
JPM	98.93	-0.83	-0.83%

S&P 500
NAME	LAST	CHG	%CHG
AMD	25.97	-0.40	-1.52%
BAC	26.84	-0.17	-0.63%
GE	9.88	-0.10	-1.00%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	25.97	-0.40	-1.52%
AAPL	188.74	-2.31	-1.21%
SIRI	5.75	-0.01	-0.17%

EDITOR'S NOTE

Why didn't the stock market rip higher after the Mueller report showed President Trump did not collude with Russia? The main reason is because the investigation had dragged on for so long, it kind of fell off Wall Street's radar. Investors we spoke with felt that if Mueller was going to surface something really damning, they would have known it by now.

Instead, fears of a global economic slowdown have taken over. Check out this chart of different benchmark bond yields from around the world:

A gravitational pull is happening here. German and Japan benchmark bond yields are back in negative territory, and the 10-year yield is being dragged lower by that same force. The global bond market is telling us something is wrong. The U.S. bond market specifically, with its inversion of the 3-month and 10-year yields, is also telling us something is not right. It's all reminiscent of behavior during the Great Recession, except this time global central banks have used most of their bullets. If there really is a global economic slowdown again, investors may need to navigate it without the help of the Federal Reserve. In fact, the more the central bank says it will help (like last week), the more it may hurt confidence. Morgan Stanley told clients today to stick with staples and utilities, which should benefit from lower rates and have a track record of steady cash flow during tough economic times.