Friday's Market Recap - Dow Shed Another 425 Points, As Buyers Fail To Show Up.
What is The Premarket Telling Us?
7:00 AM.
US stocks futures were in and out of positive territory for the duration of the premarket session, as investors attempted to digest, news of reciprocal trariffs, announced by China, the new $1.3 trillion Omnibus Budget, passed by the House and Senate yesterday, as well as the FOMC interest rate hike, two days ago.
On The Bond Desk:
The US 10 Year Bond Yield at 2.83%
Currency Desk:
Euro dollar: 1.23
UK Pound: 1.41
Crude Oil:
WTI crude oil futures at $64.28/barrel.
On the Earnings Calendar:
Lennar
In M&A News:
Drop Box, the cloud storage service, goes public today. Its IPO was priced overnight at $21.00 per share.
What About The Asian And European Markets?
Major Asian markets were significantly lower in their session. Japan (Nikkei 225) down 4.51%, Shanghai down 3.39%, Hong Kong (Hang Seng) down 2.45%.
Major European markets closed with losses. German (DAX) down 1.77%, France CAC 40 down 1.39%, London FTSE 100 down 0.44%.
Market And Sector Dynamics
Stock opened the trading day higher. The Dow jumped 92.38 points, Nasdaq rose 11.61 points, the S&P gained 7.43 points, as investors try to assess the impact of the recent rate hike, tariffs, the new Omnibus Budget passed last night.
Markets swung in and out of positive territory for the entire morning and early afternoon session, buoyed somewhat, Facebook shares, that traded higher early in the session, and other technology stocks, that lost ground yesterday. The successful launch of Drop Box IPO, is also a positive catalyst, for the markets.
One of the most important concern for investors, in the last month has been PE multiple compression. Will corporations continue to maintain their lofty price earnings multiples, in the face of changing economic environment.
All eleven S&P sectors closed significantly lower, led by financials, technology, healthcare, consumer discretionary, and basic materials, all down near two percent or more on the day.
Factors Influencing Today's Market
President Trump signing of the Omnibus spending bill, avoiding another possible shut down of the government.
Drop Box, the consumer cloud provider, went public today. Shares were priced at $21.00/share.
US 10 year bond yield closed at 2.83%. The day's range 2.83% - 2.85%.
Asian and European markets closed lower in their session.
Crude oil traded higher in today's session. WTI crude price closed at $65.88/barrel, up 2.46%.
This week's Baker Hughes Rig count rose by 4 to 804 total.
February New Home Sales rose at an annualized rate of 618,000, just shy of the 620,000 expected.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, stocks were lower. The Dow sank 424.69 points, Nasdaq fell 174.01 points, S&P fell 55.43 points.
Total NYSE volume traded, 3.82 billion shares. Declining shares outpaced Advancing shares 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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