Wednesday's Market Recap - Stocks Mixed, As Tariff Talk Leads To Resignation Of WH Economic Advi
What is The Premarket Telling Us?
7:00 AM.
Markets are bracing for the effects on the market of the latest White House departure. Gary Cohn, the head of National Economic Council, has announced his resignation, last evening, after the market close.
US stock index futures are showing its displeasure. Dow futures down 312 points, Nasdaq lost 60 points, and S&P down 26.50 points.
On The Bond Desk:
The US 10 year bond yield at: 2.88%, unchanged.
Currency Desk:
Euro dollar at 1.24
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $62.07/barrel, 0.85%
On the Earnings Calendar:
Abercrombie & Fitch reported strong quarterly performance, beating both earnings and revenue expectation.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 0.77%, Shanghai down 0.55%, Hong Kong (Hang Seng) down 1.03%
European markets were positive. Germany (DAX) up 1.09%, France CAC 40 up 0.34%, London FTSE 100 up 0.16%.
Market And Sector Dynamics
US stocks opened solidly lower, with the Dow losing 289.31 points, Nasdaq down 60 points, S&P down 24 points, driven by news that White House Economic Advisor, Gary Cohn, resigned, from the administration, due to recently announce tariffs. All eleven S&P sectors, and all 30 Dow component stocks, were lower, early in the session, and markets breath was 8:1 declining over advancing shares.
Stocks tumbled lower during the morning and early afternoon, which saw the Dow down as much as 350 points, at the low.
Markets rebounded from the lows, around 1:00 PM, after some White House representative suggested that countries like Canada, and Mexico could be exempted form the tariffs. Stocks continued the rebound into the close, but not sufficient to get back into positive territory.
Eight of the eleven S&P sector closed lower in today's trading. Energy, consumer goods, basic materials, and utilities, led the decline. Technology, healthcare, and industrials, were higher.
Factors Influencing Today's Market
Resignation of the White House Economic Policy Advisor, Gary Cohn rocked markets today.
Fear of potential retaliation by our trading partners, to steel and aluminium tariffs being proposed by the president.
ADP Employment report showed 235,000 private sector jobs were created in February. Better than the 205,000 estimated.
Crude oil inventories rose 2.4 million barrels this week, to 429.5 million barrels, nearly 20% that of one year ago.
Crude oil prices close lower in today's trading. WTI crude oil closed at $61.30/barrel, 2.08%.
Market Close Volume Traded And Advance Decline Ratio
When the closing bell rang, the indices were mixed: The Dow lost 82.76 points, Nasdaq gained 24.64 points, and and the S&P lost 1.32 points. Total NYSE volume traded, 3.33 billion shares. Advancing and Declining shares were basically even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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