Wednesday's Market Recap - Stocks Took Their Cue From Declining Crude Oil Prices In Today's
What is The Premarket Telling Us?
7:00 AM.
Stock index futures are mildly positive this morning, after yesterday's almost 300 point selloff. Dow futures are up 28 points, Nasdaq futures up 5.75 points, and S&P futures up 1.25 point.
Today, Dick's Sporting Goods, announced it will no longer sell assault rifles, or large magazines for them. The company will also increase the age limit for purchases to 21.
On The Bond Desk:
The US 10 year bond yield sits at 2.91%, unchanged.
Currency Desk:
The dollar has been strengthening against other currencies in the last two weeks.
Euro dollar at 1.22
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $62.91/barrel, down 0.16%
On the Earnings Calendar:
Lowe's reported quarterly earnings results. The company missed earnings expectations, but revenues were better than expected.
In M&A News:
Spotify, the music streaming company, announced today that it plans to file for an IPO.
Markets also learned today that Pershing Square's - Bill Ackerman, has surrendered, in his protracted fight with Herbalife Ltd., and has sold all his securities with the company.
What About The Asian And European Markets?
Major Asian markets lost ground overnight: Japan (Nikkei 225) 1.44%, Shanghai lost 0.99%, Hong Kong (Hang Seng) down 1.36%
European markets were also weaker today. Germany (DAX) fell 0.28%, France CAC 40 fell 0.40%, London FTSE 100 lost 0.70%
Market And Sector Dynamics
Stocks opened the trading day, moderately higher. The Dow rose 98.48 points, Nasdaq gained 41 points, and the S&P rose 13 points. Twenty five minutes later, the Dow was to 150 points, as both the US 10 year bond yield, and the VIX retreated from yesterday's levels.
In today's session, investors chose to ignore, the retreating 10 year bond yield, and the VIX, preferring to focus on the recent strength of the US dollar, and the resulting decline of crude oil prices, in the session. Of course there is some lingering nervousness, arising from Fed Chairman, Jerome Powell's testimony on Capitol Hill, on Tuesday.
While market tone was negative, the selloff was broad-based, and orderly. All eleven S&P sectors ended the day with losses, lead by basic materials, energy, healthcare, consumer goods, industrials, financials and telecommunications services.
Factors Influencing Today's Market
Crude oil prices fell significantly in the session. WTI crude oil price closed at $61.64/barrel, lower by 2.17%.
US dollar continues to strengthen, moderately against other currencies.
Both the US 10 year bond yield, and the VIX retreated from the upper levels, intraday.
Lingering concerns about the perceived hawkish testimony of Fed Chairman, Jerome Powell, and the potential for more rate hikes.
Lowe's disappointing quarterly earnings performance report.
Market Close Volume Traded And Advance Decline Ratio
At the close, markets were significantly lower. The Dow sank 380.83 points, Nasdaq fell 57.35 points, and the S&P lost 30.45 points. Total NYSE volume traded, 3.89 billion shares. Declining shares outpaced Advancing shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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