Monday's Market Recap - Steep Declines As Facebook, And Other Technology Stocks Stumble.
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are well in the red this morning, suggesting stock will be lower at the open. Dow futures down 122 points, Nasdaq futures down 96.75 points, and S&P down 14.25 points. Facebook is under pressure, after news broke the weekend, that the Trump Campaign and Cambridge Analytica, used unauthorized FB data to target segments of the US population with fake news.
Many investors are worried that this type of action could invite the government to consider regulatory measures to force Facebook, Google, and other social media companies to better protect user-information.
On The Bond Desk:
The US 10 year bond yield at: 2.85%.
Currency Desk:
Euro dollar at 1.22
UK Pound at 1.40
Crude Oil:
WTI crude oil futures at $62.25/barrel, down 0.26%
On the Earnings Calendar:
Oracle reports after the close of trading this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) lost 0.90%, Shanghai up 0.29%, Hong Kong (Hang Seng) added 0.04%
Major European markets were lower. Germany (DAX) down 1.39%, France CAC 40 lost 1.13%, London FTSE 100 fell 1.69%.
Market And Sector Dynamics
Stock opened the trading day solidly in the red. The Dow sank 90 points, Nasdaq fell 64 points, and the S&P down 18 points. Shares of Facebook, as well as other FAANG shares are under pressure after news of the misuse of Facebook data by Cambridge Analytica during the 2016 General Elections.
By 10:00 AM stocks fell a leg lower, as investors worry not only about Facebook, but also about the effect of tariffs on the retail sector. The Dow down 180 points, Nasdaq down 67 points.
The Dow continued its decline, as buyer failed to show up. Markets had no leadership today, technology rolled over, as did banks and energy.
By 3:00 PM, the Dow was down 485 points, at the low of the day. Market tone was negative, the selloff was broad-based.All eleven S&P sectors were lower, as was most of the Dow component stock.
Factors Influencing Today's Market
A more than seven percent decline in Facebook shares dominated markets in the session.
The US 10 year bond yield ticked up a couple a basis points intra-day, as the Fed is set to meet and hike rates this week.
Crude oil prices fell modestly in the session. WTI crude prices closed the day at $62.02/barrel, down 0.23%.
Asian and European markets were mostly lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed all the major markets were solidly lower. The Dow sank 335.60 points, Nasdaq gave up 137.74 points, and the S&P fell 39.09 points. Total NYSE volume traded, 3.24 billion. Declining shares outpaced Advancing shares almost 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments