Thursday's Market Recap: Stocks Lower As Government Shutdown Looms.
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are predicting a flat to mixed opening this morning. Dow futures are up 16 points, Nasdaq futures down 6.25 points, S&P futures up 1.5 point. Asian markets closed mixed, and so is Europe in early trading.
On The Bond Desk:
US 10 year bond yield at 2.58%, 0.04% or four basis point.
Currency Desk:
Euro dollar at 1.22
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $64.00/barrel, up 0.05%
On the Earnings Calendar:
Morgan Stanley 4th. QTR. results beat analyst earnings and revenue expectations
IBM and American Express report Q4 Earnings results, after the closing bell this evening.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 0.44%, Shanghai up 0.87%, Hong Kong (Hang Seng) up 0.43%.
Major European markets also ended their session mixed. Germany (DAX) up 0.74%, France CAC 40 up 0.02%, London FTSE 100 0.32%.
Market And Sector Dynamics
Stocks opened unchanged to begin the trading session. The Dow was up 14 points, Nasdaq fell 4 points, and the S&P lost 1.50 point. WTI crude oil is down 0.31%, sitting at $63.77/barrel, pressuring energy stocks.
Overnight were learned that China GDP rose 6.70%, for 2017, as evidence that China's economy is in fact growing again.
On the fixed income side of things, the US 10 year bond traded and closed above the 2.60% level, after a long time, leading investor to question, whether interest rate could be finally be moving higher in a meaningful way.
By noon, the Dow had sank to the low of the day, with the Dow down around 100 points. Stocks recovered almost half of those losses during the afternoon session, but lost momentum again, just before the close of trading.
Eight of the eleven S&P sectors closed the day with moderate losses. Utilities, energy, basic materials, and industrials were the main laggards. Telecommunications services closed the day higher.
Factors Influencing Today's Market
Crude oil prices fell modestly in today's session. WTI crude oil closed at $63.66/barrel, down 0.48%.
This week's EIA Status Report shows a 6.9 million barrel drawdown in inventories, the ninth week of declines.
Morgan Stanley reported better than expected 4Q Earnings results, before the start of trading this morning.
US 10 year bond yield traded above 2.60%, for the first time in about two years.
This week's Initial Jobless Claims fell 41,000 to 220,000.
China's 2017 GDP rose 6.90%.
A potential Government shutdown may have also contributed to today's market weakness.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading the Dow fell 97.84 points, Nasdaq down 2.23 points, S&P slipped 4.53 points. Total NYSE volume traded, 3.62 billion shares. Declining shares outpaced Advancing shares nearly 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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