Tuesday's Market Recap - Dow Dow 300 Points, & 10 Year Bond Yield Spikes, After New Fed Chai
What is The Premarket Telling Us?
8:00 AM.
US stock futures are modestly negative so far this morning, suggesting markets could be lower at the open. Dow futures are down 42 points, Nasdaq futures down 12 points, S&P futures down 5 points. Investors are hoping to hear from the new Fed Chairman, Jerome Powell, who will testify on the Economy, on Capitol Hill, at 10:00 AM this morning. Markets are hoping he is ready for his close-up, especially, after the recent selloff, due to the fear of rising interest rates.
On The Bond Desk:
The US 10 year bond yield at: 2.86% , down 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 $63.72/barrel, down 0.30%
On the Earnings Calendar:
Macy's reported better than expected quarterly earning results, fueled by strong sales gains. Shares of the company are indicated higher, in the premarket.
In M&A News:
New this morning. Comcast is making a $31 Billion bid for European broadcaster, Sky, which is partially owned by Rupert Murdoch, potentially complicating, Disney's own deal to buy most of the assets from Twenty First Century Fox.
Salesforce, reports quarterly results after the bell this evening.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) gained 1.07%, Shanghai down 1.13%, Hong Kong (Hang Seng) down 0.73%
Major European markets were all lower. Germany (DAX) 0.29%, France CAC 40 down 0.01%, London FTSE 100 lost 0.10%
Market And Sector Dynamics
Stock opened lower to kick off the trading day. The Dow lost 63 points, Nasdaq slipped 5 points, and the S&P fell 5 points. Stocks turned positive shortly, after the opening, with the Dow up more than 100 points, just prior to the start of testimony from the new Fed Chair.
Strong earning from Macy's, is pushing shares of all the other department stores higher. On the other hand, shares of Comcast, Disney, and Twenty First Century Fox, are trading lower, due to the announced Comcast deal for Sky.
Stocks started to selloff gradually, as the testimony began, and during the question and answer session, and continued lower into the afternoon, and into the close.
Today's selloff was broad based, with all eleven S&P sectors closing lower. Consumer goods, telecommunications, energy, utilities, basic materials, and industrials, were the main laggards.
Factors Influencing Today's Market
The US 10 year bond yield ticked higher again today, after the testimony of Fed Chairman, Jerome Powell, on Capitol Hill.
The VIX also jumped higher in the session.
Strong quarterly earnings results from Macy's pushed its shares higher, as well as the share prices of other department stores.
Comcast is making a $31 billion bid for European broadcaster, Sky, possible complicating the Disney Twentieth Century Fox deal.
Crude oil fell in today's trading. WTI crude oil closed at $63.01/barrel, down 1.41%.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading markets gave back most of the gains of yesterday. The Dow fell 299.14 points, Nasdaq lost 91.11 points, and the S&P lost 35.32 points. Total NYSE volume traded, a moderate 3.55 billion shares. Declining shares outpaced Advancing shares nearly 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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