Stock Market Update

[BRIEFING.COM] The stock market logged declines, again. The market has been in a steady downtrend as trade war tensions intensify and growth concerns increase. The former was relevant today after President Trump announced that the US will impose a 50% tariff on Canadian steel and aluminum imports, starting Wednesday, instead of the originally proposed 25%.

The escalation follows a retaliatory measure by Ontario, which imposed a 25% tariff on exports of electricity to the U.S. in response to the originally planned 25% tariffs on Canadian imports. 

Investors were also dealing with warnings about corporate earnings from several airlines and a few retailers. Delta Airlines (DAL 46.68, -3.65, -7.3%), American Airlines (AAL 11.46, -1.04, -8.3%), and Southwest Airlines (LUV 30.53, +2.35, +8.3%) lowered their Q1 revenue outlook.

Dick's Sporting Goods (DKS 198.97, -12.05, -5.7%) and Kohl's (KSS 9.15, -2.90, -24.1%) disappointed with full-year guidance after reporting their quarterly results.

The CBOE Volatility Index (VIX) spiked above 29.5 today, indicating preparation for further downside in the market. 

It wasn't all bad in the equity market, however. The Nasdaq Composite traded above its prior close at its high of the day, propelled by rebound buying in some mega cap names. Tesla (TSLA 230.58, +8.43, +3.8%) and NVIDIA (NVDA 108.76, +1.78, +1.7%) were among the standouts.

Reviewing today's economic data:

• February NFIB Small Business Optimism 100.7; Prior 102.8
• January JOLTS - Job Openings 7.740 mln; Prior was revised to 7.508 mln from 7.600 mln

Wednesday's economic data includes:

• 7:00 ET: Weekly MBA Mortgage Index (prior 20.4%)
• 8:30 ET: February CPI (Briefing.com consensus 0.3%; prior 0.5%) and Core CPI (Briefing.com consensus 0.3%; prior 0.4%)
• 10:30 ET: Weekly crude oil inventories (prior -2.33 mln)
• 14:00 ET: February Treasury Budget (prior -$129.0 bln)