Tuesday's Market Recap - Stock Failed To Hold Morning Gains, As Fear Of Tariff Retaliation Looms
What is The Premarket Telling Us?
7:00 AM.
US stock futures are again higher this morning. Dow futures up 57 points, Nasdaq futures up 8.25 points, and the S&P futures up 6.00 points.
President Trump has unceremoniouly, fired his Secretary of State, Rex Tillerson, this morning, adding to the confusion of this administration.
On The Bond Desk:
The US 10 year bond yield at: 2.87%.
Currency Desk:
Euro dollar at 1.23
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $61.57/barrel, up 0.34%.
On the Earnings Calendar:
Dick's Sporting Goods, quarterly results disappointed investors, as holiday sales fell short of expectations.
In M&A News:
Broadcom's proposed hostile takeover of Qualcomm is finally dead. Last night the President signed a CFIUS order preventing Broadcom from buying Qualcomm, for national security reasons.
What About The Asian And European Markets?
Major Asian markets were mixed today. Japan (Nikkei 225) up 0.66%, Shanghai down 0.49%, Hong Kong (Hang Seng) up 0.02%
European markets were mostly lower. Germany (DAX) down 1.59%, France CAC 40 down 0.64%, London FTSE 100 down 1.05%.
Market And Sector Dynamics
US markets opened moderately higher, with the Dow up 106 points, Nasdaq gained 35 points, and the S&P added 12 points. Investors are cheering the release of February CPI, which rose 0.20%, as was estimated. No indication of an over heating economy.
We also learned last evening the the president signed off on a CFIUS decree, barring Broadcom from ever acquiring Qualcomm, for national security reasons.
At the high of the day, the Dow was up over 214 points, shortly after the open, but by 10:30 PM, stock slowly retreated from the high, with the Dow down more than 100 points, by the end of the morning session. Concern around the recently announced tariffs, and their potential effects on the economy continues to linger.
The President's unceremonious firing of Secretary of State, Rex Tillerson, on Twitter, also cast a negative shadow over the markets.
Stocks returned to positive territory, holding just above the flat line, for the first half of the afternoon session. But, unfortunately, for the bulls, stocks lost momentum, falling to the low of the day, at the close.
Today's selloff was broad-based. Eight of the eleven S&P sectors closed the session with moderate losses, led by, technology, telecommunications services, financials, energy, industrials, and basic materials.
Factors Influencing Today's Market
Potential fall out from the newly imposed tariffs on steel and aluminium is casting fear over the markets.
Surprising and unceremonious firing of Secretary of State, Rex Tillerson.
President Trumps terminates Broadcom's proposed purchase of Qualcomm.
Crude oil prices fell today. WTI crude oil closed at $60.88/barrel,down 0.78%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, all the major indices were solidly lower. The Dow sank 171.58 points, Nasdaq fell 77.31 points, and the S&P lost 17.71 points. Total NYSE volume traded, 3.26 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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