8/3/15 Market Recap:
U.S. stocks fell on Monday, with cyclical sectors like industrials among the weakest of the day as renewed concerns about China pushed investors to drop the parts of the market that are most closely tied to the pace of global economic growth. China continued its recent equity weakness following some disappointing factory data, which raised fresh concerns about the impact China’s growth will have on U.S. corporate profits. Companies from Apple (AAPL) to Exxon Mobil (XOM) fell on China concerns; both have a lot of revenue exposure to the market.
Futures were modestly lower on Tuesday, with investors still watching overseas markets. Shares in Shanghai rebounded sharply from their weakness on Monday, with a major index closing up almost 4 percent. In Greece, which continues to struggle with its debt crisis, shares fell for a second straight day. The overseas volatility could give U.S. investors pause, especially with few obvious catalysts that could push shares higher. The current earnings season has largely been disappointing, with profit growth minimal and revenue growth falling. Allstate (ALL) and Aflac (AFL) were both lower in premarket following results released after the market closed on Monday, though Tenet Healthcare (THC) posted strong results after the bell. Make sure to tune into CNBC on Tuesday at 3:45 PM when our Co-Portfolio Manager, Oliver Pursche, will give our latest outlook and discuss why we remain cautiously optimistic.