Thursday's Market Recap - Dow Falls 1032 Points, The Second Largest Point Drop Ever.
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are mostly lower, ahead of the start of trading. Dow futures down 37 points, Nasdaq futures up 5.25 points, and the S&P futures down 2.75 points. Between 7 AM, and when the markets opened stock futures swung wildly, in and out of negative and positive territory, suggesting, more volatility, to come in today's session.
On The Bond Desk:
The US 10 year bond yield has ticked higher at: 2.84 % , up 0.07% or 7 basis points.
Currency Desk:
Euro dollar at 1.22
UK Pound at 1.39
Crude Oil:
WTI crude oil futures at $61.32/barrel, down 0.76%
On the Earnings Calendar:
Twitter, (TWTR) reported better than expected fourth quarter earnings results. Shares of the company are up more that 20%.
Tyson Foods, also reported better than expected earnings this morning. The company also announces employee bonuses, due to the recent tax cuts.
In M&A News:
Qualcomm formally rejects Broadcom's sweetened $121 Billion hostile bid.
What About The Asian And European Markets?
Major Asian markets were higher overnight; Japan (Nikkei 225) up 1.13%, Shanghai down 1.43%, Hong Kong (Hang Seng) rose 0.42%.
European markets closed lower on the day. Germany (DAX) down 2.62%, France CAC 40 fell 1.98%, London FTSE 100 down 1.49%.
Market And Sector Dynamics
Stocks opened the day modestly lower. The Dow fell 23 points, Nasdaq up 20 points, and the S&P fell 2 points. WTI crude oil is also catching a bid early, at $62.02/barrel, up 0.37%. Strong quarterly earnings from Twitter, recording its first GAAP profit in history, was a catalyst for markets, as shares of the company soared more than 20%, higher in early trading.
Twenty minutes after the open, the Dow sank more than 175 points, as the US 10 year bond ticked up to 2.873%, as some investors worry about the effects of the new US spending bill, agreed to between Senate Republicans, and Republicans last night.
By 11:00 AM, the Dow fell to a new intraday low 350 points, and by 1:00 PM, it was down 650 points, as the volatility continues with now end in sight.
Stocks continued to drift steadily lower during the entire session, closing at the low of the day, as buyers disappeared.
Despite the negative market tone, today's selloff, was orderly. All the eleven S&P sectors closed with losses in the session, led by consumer goods, technology, industrials, financials, healthcare, basic materials.
Factors Influencing Today's Market
Fear of the steep rise of the US 10 year bond yield, continues to be a negative catalyst for stocks, leading to more volatility.
Crude oil has been losing ground during this market volatility. WTI crude oil closed at $60.49/barrel, down 1.91%.
This week's Initial Jobless Claims fell 9000 to 221,000, a 45 year low.
Better than expected quarterly earning from Twitter, one of the few catalyst for markets in the session.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, all the major indexes were at the lows of the day. The Dow tanked 1032.89 points, Nasdaq dived 274.82 points, and the S&P lost 100.66 points. Total NYSE volume traded, 5.26 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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