Monday's Market Recap. Dow Down Triple Digits, As Rising Bond Yields Spook Investors.
What is The Premarket Telling Us?
7:00 AM.
Stock index futures are modestly lower, the ahead of the start of trading. Dow futures down 31 points, Nasdaq futures down 18.50 points, and the S&P down 6.75 points. Investor are anticipating busy week of corporate earnings, with many big cap stocks reporting in the next few days. Alphabet, AT&T, Aetna, Boeing, Eli Lilly, Pfizer, and Facebook, will all report quarterly results this week.
On The Bond Desk:
US 10 year bond yield at 2.66%, up 0.04% or four basis points.
Currency Desk:
Euro dollar at 1.23
UK Pound at 1.40
Crude Oil:
WTI crude oil futures pointing lower at $65.82/barrel, down 0.48%.
On the Earnings Calendar:
Strong Q4 Earning results from Lockheed Martin. Revenues were strong, and the company guided number higher.
In M&A News:
Dr. Pepper, Snapple, is to merge with Keurig Green Mountain
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 0.01%, Shanghai down 0.99%, Hong Kong (Hang Seng) down 0.56%.
Major European markets were mostly lower, their session. Germany (DAX) down 0.12%, France CAC 40 down 0.14%, London FTSE 100 up 0.08%.
Market And Sector Dynamics
US stocks opened moderately negative to begin the new trading week. The Dow fell 49 points, Nasdaq down 26 points, and the S&P fell 8 points. Market are under pressure early, due to the persistent rise of the US 10 year bond, now sitting at the 2.70% rate range.
Investors are responding to news, regarding disappointing sales of Apple's iPhone 10, and this is pushing share of Apple lower, today.
Strong US and and global growth, is still the main force holding markets together at these lofty levels. In addition, fourth quarter earning results, have been nothing short of stellar. So far, 79% of companies have beat earnings expectations, and 82% of companies beat revenue estimates.
Today, investors are a bit skittish because US 10 year bond yields are rising, and if it continues, this could cause the Federal Reserve to increase its pace of interest rate hikes.
All eleven S&P sectors lost ground in today's session, led by energy, telecommunications services, utilities, financials, and basic materials.
Factors Influencing Today's Market
Crude oil traded lower in today's session. WTI crude oil price closed at $65.50/barrel, down 1.13%
US 10 year bond yield continues to creep up at 2.70%.
Dr. Pepper Snapple to merge with Keuriq Green Mountain.
Report of weak iPhone sales spook markets.
European and Asian markets closed lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading stocks were solidly lower. The Dow fell 177.23 points, Nasdaq lost 39.37 points, S&P was off by 19.34 points. Total NYSE volume traded, 3.51 billion shares. Declining shares outpaced Advancing shares almost 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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