Wednesday's Market Recap - Dow Recover From Triple Digit Losses, To Close Slightly Lower.

What is The Premarket Telling Us?

8:30 AM.

US stock futures are moderately negative this morning, due to a report that China is planning to decrease its purchase of US Treasury securities. Dow futures down 91 points, Nasdaq futures down 30.50 points, and S&P futures down 9.25 points. Higher interest rates, and fixed income issues are expected to dominate markets today, as the US 10 year bond yield continues to climb higher.

On The Bond Desk:

US 10 year bond yield at 2.59%, up 0.04% or 4 basis points.

Currency Desk:

Euro dollarat 1.19

UK Pound at 1.35

Crude Oil:

WTI crude oil prices is up at $63.51/barrel, up 0.87%

On the Earnings Calendar:

Lennar Homes decline after reporting disappointing 4th Quarter financial results. The home-builder, missed earnings estimates, , but met revenue expectations.

In M&A News:

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What About The Asian And European Markets?

European markets closed mixed overnight. Japan (Nikkei 225) down 0.26%, Shanghai up 0.23%, Hong Kong (Hang Seng) up 0.20%.

European markets were most lower; Germany (DAX) down 0.78%, France CAC 40 down 0.35%, London FTSE 100 up 0.23%.

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Market And Sector Dynamics

Markets opened the trading day moderately lower. The Dow sank 66 points, Nasdaq fell 34 points, and the S&P lost 8.50 points. Rising US bond yields, and fear that Fed could increase the pace of tightening, could a downturn in the economy and the markets.

The Dow sank even lower early in the morning session, hitting a low of 135 points, but managed to recoup some of those losses as the session continued. By 2:00 PM stocks had returned to positive territory, for a brief period, before a modest sell off just before the close.

Seven of the eleven S&P sectors ended the day with modest losses. Utilities, telecommunications services, technology, and industrials, were the laggards. Financials were higher in today's session.

Factors Influencing Today's Market

• Reports that China is planning to reduce its purchase of US debt spooked markets.

• Crude oil prices climbed higher in today's session. WTI crude oil prices closes at $63.45/barrel, up 0.78%.

• Toyota and Madza announced plans to build a plant in Alabama. It is anticipated that 4000 new jobs will be created.

• This week's EIA Status Report shows crude oil inventories, fell 4.9 million barrels to 419.5 barrels. The eight straight week of drawdown of inventory.

• Homebuilder, Lennar, posted disappointing 4th Quarter results.

Market Close Volume Traded And Advance Decline Ratio

When the markets closed, the three major indexes were lower. The Dow lost 16.67 points, Nasdaq fell 10.01 points, and the S&P slipped 3.06 points. Total NYSE volume traded, a moderate 3.36 billion shares. Declining shares outpaced Advancing shares nearly 2:1.

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