Thursday's Market Recap - A Session That Began With The Fed. Ended With Surprising Tariffs On Al
What is The Premarket Telling Us?
7:00 AM.
US stock futures are triple digit lower two and a half hours before the opening bell. Dow futures are down 158 points, Nasdaq fell 36 points, and the S&P futures down 15.25 points. The US 10 year bond yield has moderated, but investors are still cautious, ahead of Fed Chairman's, Jerome Powell, testimony before the Senate Banking Committee, later this morning. Investors are hoping for a less hawkish Powell, compared to his testimony in the House on Tuesday.
On The Bond Desk:
The US 10 year bond yield at: 2.87% , or unchanged.
Currency Desk:
Euro dollar at 1.21
UK Pound at 1.37
Crude Oil:
WTI crude oil futures at $61.14 /barrel, down 0.81%.
On the Earnings Calendar:
Cloud service provider, Salesforce, reported quarterly result. The company beat earning and revenue expectations.
Best Buy, Kohl's, Gap, and Nordstrom, reported strong quarterly financial results, and shares are all pointing higher in the premarket.
In M&A News:
Spotify plans to go public. The online streaming company, will list directly on the exchange, without utilizing underwriters.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 1.56%, Shanghai up 0.44%, Hong Kong (Hang Seng) gained 0.65%
European markets were lower. Germany (DAX) down 1.97%, France CAC 40 down 1.09%, London FTSE 100 % lost 0.78%.
Market And Sector Dynamics
The first trading day of March began with a whimper, but ended with a loud bang. Stock opened modestly higher, with the Dow up 34 points, Nasdaq up 17 points, and the S&P up 5 points, as investors anticipate the Fed Chairman, Jerome Powell's, testimony before the Senate later this morning.
Strong earnings from cloud provider, Salesforce.com and some large retailers, such as Best Buy, Kohl's, and Gap, and their shares are helping to push markets higher. Halfway through the morning session stocks soared higher, sending the Dow up over 150 points, as Fed Chairman, Powell delivered, what was perceived, as less hawkish testimony before the Senate as was expected.
Just before noon, President Trump, dropped a bombshell, on the market, by announcing that he plans to levy tariffs of 25% on steel, and 10% on Aluminium, imported into the country.
Markets turned lower, and tone turned decidedly negative, and sank lower for the rest of the session. By 1:00 PM., the Dow was down 300 points, and continued lower, into the close.
Ten of the eleven S&P sectors closed the session with losses. Technology, healthcare, industrials, consumer goods, and financials, bore most of the losses.
Factors Influencing Today's Market
Fed Chairman, Jerome Powell's testimony before the Senate Banking Committee was received by the market as less hawkish.
A surprising announcement from President Trump, that he is slapping tariffs 25% on Steel, and 10% on Aluminium, imports from other countries. A decision that tanked the markets.
Strong quarterly results from cloud company, Salesforce, electronics retailer, Best Buy, Kohl's, Gap & Nordstrom.
Asian and European markets closed lower in their session.
Crude oil traded lower in today's session. WTI crude oil closed at $60.99/barrel, down 1.05%.
This week's Initial Jobless Claim fell 10,000, to 210,000 total.
Market Close Volume Traded And Advance Decline Ratio
Today is a day investors wanted to forget. At the close of trading, the Dow sank 420.22 points, Nasdaq lost 92.45 points, and the S&P lost 36.16 points. Total NYSE volume traded, a strong 4.35 billion shares. Declining shares outpaced Advancing shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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