Monday's Market Recap: Dow Drops 1175 Points, Wiping Out All 2018 Gains, Due To Rising Yields, A
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are triple digit lower this morning, although, less ugly than last Friday morning, which precipitated the massive, more than 600 point selloff at the close on Friday. Dow futures down
Dow futures are currently down 186 points, Nasdaq futures down 25.25 points, and S&P futures down 12.50 points.
On The Bond Desk:
US 10 year bond yield sits at 2.85%, up 0.08% or eight basis points.
Currency Desk:
Euro dollar 1.24
UK Pound 1.40
Crude Oil:
WTI crude oil futures $65.05/barrel, down 0.61%
On the Earnings Calendar:
Strong Fourth Quarter Earnings results from Bristol Meyers (BMY). The company beat on the top and bottom line.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were most lower. Japan (Nikkei 225) down 2.55%, Shanghai added 0.73%, Hong Kong (Hang Seng) fell1.09%.
Major European markets declined today. Germany (DAX) down 0.76%, France CAC 40 fell 1.48%, London FTSE 100 lost 1.46%.
Market And Sector Dynamics
Markets opened the trading day lower, continuing the selloff of last Friday's session. The Dow fell 283 points, Nasdaq down 75 points, S&P down 26 points. Crude oil prices are also lower, with WTI crude oil currently at $65.11/barrel, down 0.53%.
Between Friday's selloff and this mornings decline the Dow is now down 5%.
Investor are responding to rising US bond yields, and a fear of Inflation, which could cause the Fed to hike rates at a faster pace.
Stocks traded off the lows shortly after the open, as a wave of buyers came into the market, after the release of January ISM Non-Manufacturing Index showing an increase of 59.90 vs 56.20 estimated. The turnaround was short lived however, as stock continued its decline.
Around 3:00 PM, stocks took another another leg down, with the Dow sinking 1600 points, a mere 15 minutes later, before bouncing about 800 points, off the low. Stocks took another leg lower just before the close.
Today's selloff was scary, but orderly. All eleven S&P sectors closed with significant losses. Consumer goods, healthcare, industrials, financials, energy, telecommunications services, took the brunt of the losses.
Factors Influencing Today's Market
US 10 year bond yield continues to spook investors climbing near the 2.90%.
A strong read on January ISM Non-Manufacturing Index showing it rose 59.90 vs 56.20 estimated.
Crude oil fell moderately in today's session. WTI crude oil closed at $63.58/barrel, down 2.21%
Strong 4 Qtr. Earning results from Bristol Myers.
Asian and European markets ended their sessions lower.
Market Close Volume Traded And Advance Decline Ratio
At close of trading, the indexes were depressingly lower. The Dow dived 1175.21 points, Nasdaq tanked 273.42 points, and the S&P sank 113.19 points. Total NYSE volume traded 5.21 billion shares. Declining shares outpaced Advancing shares by 9:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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