Tuesday's Market Recap - Dow Plunges 254 Points On Disappointing Quarterly Earnings From Mega Re
What is The Premarket Telling Us?
7:00 AM.
US stock futures are well into negative territory, to begin this shortened week of trading. Dow futures down 212 points, Nasdaq futures down 55.25 points, and the S&P futures down 21 points.
On The Bond Desk:
The US 10 year bond yield at: 2.88% , up down 0.01% or one basis points.
Currency Desk:
Euro dollar at 1.23
UK Pound at 1.39
Crude Oil:
WTI crude oil futures at $61.93 /barrel, up 0.62%
On the Earnings Calendar:
Walmart reported disappointing quarterly earnings results. Shares of the company are trading lower.
Home Depot reported strong quarterly earning, beating earning and revenue estimates, and all other metrics.
In M&A News:
Qualcomm raises its bid for NXP, making Broadcom's hostile bid for Qualcomm, unlikely.
Albertson's is buying what's left of Rite Aid.
What About The Asian And European Markets?
Major Asian markets were Japan (Nikkei 225) down 1.01%, Shanghai up 0.45%, Hong Kong (Hang Seng) down 0.84%
European markets were mixed in their session. Germany (DAX) up 0.83%, France CAC 40 up 0.64%, London FTSE 100 down 0.01%.
Market And Sector Dynamics
Stocks opened the shortened trading day significantly lower. The Dow dived 146 points, Nasdaq fell 30 points, and the S&P down 12 points. Markets are under pressure due to disappointing quarterly earning report from retailer, Walmart, as well as an uptick in the US 10 year bond yield.
By mid-morning, the Dow had fallen lower, down more than 250 points. Markets recovered during the early afternoon, but began trading lower, with the Dow down more that 350 point shortly before the close.
Today's selloff was orderly. Ten of the eleven S&P sectors traded lower in the session, led by consumer goods, basic materials, healthcare, utilities, telecommunications services, and industrials.
Factors Influencing Today's Market
Crude oil prices slipped today. WTI crude oil closed at $61.66/barrel, down 1.15%
The volatility index, the VIX closed at 20.60. Intraday range 19.75 - 21.34
US 10 year closed at 2.893%. Today's intraday range 2.89% - 2.913%.
Grocery chain, Albertsons is buying what's left of Rite Aid, after Walgreens failed takeover bid, and subsequent purchase of some stores.
Home Depot reported strong quarterly performance, beating on every metric.
Walmart reported disappointing quarterly earnings, and its shares traded lower in the session, putting pressure on the Dow.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were all down. The Dow sank 254.63 points, Nasdaq down 5.16 points, and the S&P lost 15.96 points. Total NYSE volume traded, a moderate 3.40 billion shares. Declining shares outpaced Advancing shares more than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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