Thursday's Market Recap. Dow Modestly Higher, In Volatile Session, Driven By Rising Bond Yields.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are looking very indecisive this morning ahead of the start trading for the new month. Dow futures down 22 points, Nasdaq future up 4.75 points, and S&P up 2.25 points. Yesterday, the Feds left US interest rates unchanged, but remain on track to raise rates steadily this year.
On The Bond Desk:
US 10 year bond yield at 2.72%, down .01% or one basis point.
Currency Desk:
Euro dollar at 1.24
UK Pound at 1.42
Crude Oil:
WTI crude oil futures at $65.18/barrel, up 1.65%.
On the Earnings Calendar:
Facebook reported strong 4 Qtr. Earnings results after the bell yesterday evening. Shares fell in the after market, but quickly turned around, and moved higher.
Apple, Amazon, and Microsoft report earnings results after the closing bell this evening.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mixed to begin the new month. Japan (Nikkei 225) up 1.68%, Shanghai fell 0.97%, Hong Kong (Hang Seng) fell 0.75%.
Major European markets fell in their session. Germany (DAX) down 1.41%, France CAC 40 0.50%, London FTSE 100 down 0.57%.
Market And Sector Dynamics
Markets open negative to start the new trading month, Dow fell more than 100 points, Nasdaq fell 24 points, and the S&P fell 5 points. Investors have a lot on their minds today. The last few trading sessions, we see that volatility has returned to the markets. The Fed seems slightly more hawkish. The 10 year bond yield continues to march higher, and the US $ has weakened.
Markets turned positive around 11:00 AM, and Dow was up nearly 160 points, early in the afternoon session. Stocks slipped in and out of negative territory during the rest of the session, eking out a slight gain just before the close.
Seven of the eleven S&P sectors closed the day with modest losse, led by utilities, technology, real estate, and basic materials. Energy and financial ended with gains.
Factors Influencing Today's Market
Crude oil traded moderately higher in the session. WTI crude oil closed $65.80/barre, up 1.65%.
Strong 4 Qtr. Earnings from Facebook, which saw share of the company surging higher in today's trading.
Persistent surge in the US 10 year bond yield has really gotten investors attention.
Asian and European markets were mostly lower in their respective sessions.
This week's Initial Jobless Claims fell 1000 jobs to 230,000.
January 2018 Auto sales came in at an annualized 17.1 million units.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading markets were mixed. The Dow rose 37.32 points, Nasdaq fell 25.62 points, S&P down 1.83 point. Total NYSE volume traded, 3.91 billion shares. Declining shares outpaced Advancing shares slightly better than even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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