Wednesday's Market Recap - Mixed Session, As Crude Falls Sharply.

What is The Premarket Telling Us?

7:00 AM.

Stock futures are modestly negative. Dow futures down 36 points, Nasdaq futures down 28 points, S&P futures down 3.5 points. Asian markets were down markedly, overnight, and Europe is off in early session.

On The Bond Desk:

The US 10 year bond yield hovering at 2.36%, down 0.02or two basis points.

Currency Desk:

Euro dollar at 1.18

UK Pound at 1.33

Crude Oil:

WTI crude oil futures down moderately, at $56.92/barrel, off 1.21%.

On the Earnings Calendar:

Lululemon Athletica reports Q3 Earnings results after the closing bell this evening.

In M&A News:

We learned of another healthcare related merger this morning. United Healthcare announced it is buying DaVita Medical Group Clinics for $4.9 Billion.

Walgreens is taking a 40% stake in a China drugstore chain, in a deal worth $416 million.

What About The Asian And European Markets?

Major Asian markets fell hard overnight; Japan (Nikkei 225) down 1.97%, Shanghai slipped 0.29%, Hong Kong (Hang Seng) down 2.14%.

European markets were mostly lower; Germany DAX down 0.38%, France CAC 40 down 0.02%, and London FTSE 100 up 0.28%.

Market And Sector Dynamics

Stocks opened modestly lower; The Dow down 9 points, Nasdaq fell 17 points, and the S&P slipped 1.7 points. Crude oil is also trending lower, with the WTI crude at $56.97/barrel, down 1.13%. Utilities and healthcare led the markets early, as investors learned, this morning, that United Healthcare has agreed to buy DaVita Medical Medical Group, for $4.9 Billion.

Banks are also down, so is AT&T and Time Warner, as they prepare duke it out with the Department of Justice, in court. Investors are also worried about what this DOJ challenge says about other potential vertical mergers, going forward.

Asian markets were down big, ahead of our open, perhaps a response to the US tax plan, and the Trump administration's expected decision, to recognize Jerusalem as the Capitol of Israel, and eventually moving the embassy there.

While the Dow did enter positive territory on a few occasions intraday, it ultimately failed to hold on to any gains.

Seven of the eleven S&P sectors closed with moderate losses. Energy, telecommunications services, consumer cyclicals, basic materials, financials, and healthcare, were the main laggards.

Factors Influencing Today's Market

• New merger in the healthcare industry. United Healthcare agreeing to by DaVita Medical Group for $4.9 billion.

• Crude oil fell sharply in today's trading. WTI crude oil price closed at $55.96/barrel, down 2.88%.

• Asian markets fell sharply in their Wednesday session..

• ADP November Private Payroll rose a solid 190,000 jobs.

• This week's EIA Petroleum Status Report, shows crude oil inventory fell 5.6 million barrels.

Market Close Volume Traded And Advance Decline Ratio

When the markets closed stocks were mixed. The Dow lost 39.73 points, Nasdaq added 14.16 points, and the S&P off a fraction 0.30 of a point. Total NYSE volume traded, 3.19 billion shares. Declining shares outpaced Advancing shares better than even.

Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.