Tuesday's Market Recap - Stock Modestly Lower, After Biggest Market Reversals In Two Years.

What is The Premarket Telling Us?

7:00 AM.

The first trading day, after yesterday's MLK Holiday, US stock index futures are significantly higher, in the premarket. Dow futures up 220 points, Nasdaq futures up 44 points, and S&P futures up 12.50 points. Major Asian markets closed with solid gains overnight.

On The Bond Desk:

US 10 year bond yield at 2.55%, up 0.02%or two basis points.

Currency Desk:

Euro dollar at 1.22

UK Pound at 1.37

Crude Oil:

WTI crude oil futures at $63.86/barrel, down 0.68%.

On the Earnings Calendar:

Strong 4 Quarter Earning reports from United Healthcare, and CitiGroup. However, CitiGroup took a one time hit, due to the effects of the new tax cut bill.

In M&A News:

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What About The Asian And European Markets?

Major Asian markets were higher in their Tuesday session. Japan (Nikkei 225) up 1.00%, Shanghai up 0.77%, Hong Kong (Hang Seng) up 1.81%.

European markets closed mostly higher. Germany (DAX) up 0.35%, France CAC 40 up 0.08%, London FTSE 100 down 0.17%.

Market And Sector Dynamics

Stock rocketed higher at the start of trading. The Dow jumped 200 points, Nasdaq up 46 points, and the S&P up 14 points. Crude oil prices are down slightly, early in the session, putting pressure on energy related stock.

Markets remained supercharged very early in the session, with the Dow up nearly 300 points, at it high. One hour into the session stocks lost some momentum, but continued in that range until midway through the afternoon session. Unfortunately, buyers seems to have disappeared a short while later, sending all the major indices into negative territory.

In today's session, investors appeared somewhat fearful that markets may be seriously overbought, and may be due for a pullback. Large high technology, and industrial stocks bore the brunt of today's downturn.

Today's reversal was gradual and orderly. Seven of the eleven S&P sectors ended the session with losses. Basic materials, energy and industrials were the biggest drag on the markets.

Factors Influencing Today's Market

• Fear that the markets may be overbought dominated today's trading session.

• Crude oil traded moderately lower in today's session. WTI crude price closed at $63.73/barrel, down 1.54%.

• Better than expected Q4 Earnings performance from United Healthcare and Citigroup.

• Dow hit the 26,000 level intraday, for the first time in history, less than one month after hitting Dow 25,000.

Market Close Volume Traded And Advance Decline Ratio

At the close of trading, the Dow gave up 10.33 points, Nasdaq fell 37.38 points, and the S&P lost 9.82 points. Total NYSE volume traded, 4.03 billion shares. Declining shares outpaced Advancing shares better than 2:1.

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