Thursday's Market Recap - Dow Sank More Than 700 Points, After White House Impose Tariffs On Chi
What is The Premarket Telling Us?
7:00 AM.
US stock futures are significantly lower, two and a half hours before the start of trading. Dow futures down 201 points, Nasdaq futures down 88 points, and S&P futures down 22 points. All happening after the Fed/FOMC hiked interest rates, by a quarter point yesterday. Later this morning, the White House is expected to announce a bunch of new tariffs, against China, and that is also contributing to negative sentiment this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 2.91%
Currency Desk:
Euro dollar: 1.23
UK Pound: 1.41
Crude Oil:
WTI crude oil futures $64.51/barrel, down 1.00%
On the Earnings Calendar:
In M&A News:
Accenture, (ACN) reported strong Q2 Earning results, topping both earnings and revenue estimates.
Carnival Cruise Lines, also beat profits expectations, and raised its outlook.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up 0.99%, Shanghai down 0.53%, Hong Kong (Hang Seng) fell 1.09%.
Major European markets closed lower. German (DAX) down 1.70%, France CAC 40 fell 1.38%, London FTSE 100 lost 1.23%.
Market And Sector Dynamics
Stocks opened the trading day significantly lower. The Dow sank 260 points, Nasdaq fell 88 points, and S&P lost 26 points. Shares of Facebook is again under pressure this morning, even after CEO Mark Zuckerberg released a statement yesterday, and finally, sat down with a few journalist to apologize, for the misuse of FB data. Shares of the company traded off the morning lows, for a while, but later continued its decline intra-day.
Market glided lower throughout the session, as investors dealt with the continuing fallout from the Facebook story, White House announcement of tariffs on China, and yesterday's FOMC rate hike, all of which were negative sentiments for the markets today.
Ten of the eleven S&P sectors closed the session lower. Financials, industrials, basic materials, healthcare, technology, consumer discretionary, and energy were the main laggards.
Factors Influencing Today's Market
The White House announced trade tariffs on China, was a negative for markets today.
Facebook and other technology stocks declined again in the session.
Carnival Cruise Lines beat earnings expectation before the bell this morning.A
Accenture reported strong quarterly results, beating both earnings and revenue expectatations.
Crude oil prices fell modestly in today's session. WTI crude oil closed at $64.66/barrel, down 0.94%.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading, all the major markets were deep in the red. The Dow dived 724.42 points, Nasdaq sank 178.61 points, and the S&P lost 68.24 points. Total NYSE volume traded, 3.52 billion shares. Declining shares outpaced Advancing shares nearly 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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