Friday's Market Recap - Opening Rally Fades Despite Strong Earnings From Big Banks.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately elevated in the premarkets. Dow futures up 63 points, Nasdaq futures up 9.45 points, and the S&P futures 7.75 points. A few of the big banks will report quarterly earnings this morning, and investors are hoping, that a solid performance by the banks, will help markets, re-focus on fundamentals.
On The Bond Desk:
The US 10 Year Bond Yield 2.83%
Currency Desk:
Euro dollar: 1.23
UK Pound: 1.42
Crude Oil:
WTI crude oil futures @ $66.97/barrel, down 0.15%
On the Earnings Calendar:
JP Morgan, CitiBank, and Wells Fargo, reported strong first quarter financial results, before the opening bell. Shares of the companies are all higher in premarket session.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) rose 0.55%, Shanghai lost 0.66%, Hong Kong (Hang Seng) lower by 0.07%
Major European markets made modest gains. German (DAX) 0.22%, France CAC 40 0.11%, London FTSE 100 slipped 0.09%.
Market And Sector Dynamics
Markets opened today's session with triple digit gains. The Dow surged 140.59 points, Nasdaq gained 39.68 points, and the S&P added 14.44 points. Strong quarterly earnings results from JP Morgan, CitiBank, and Wells Fargo, are helping to buoy markets.
Market have been quite volatile, fluctuating largely due to geopolitical tensions in Syria, talk of trade tariffs, and retaliation, Fed posture on, interest rates.
Stock started to trend lower mid-morning, after investors seems to sour on financials, despite the strong earnings from banks, and other financial institution. Investors seems to be focusing on loan growth, for these institutions, which were good, but not stellar.
Stock remained in negative territory for the rest of the trading session.
The markets were orderly, volume was light, and mostly even. Seven of the eleven S&P sectors were closed with losses, led by financials, consumer discretionary, and technology. Energy, utilities, consumer staples, and real estate sectors closed with gains.
Factors Influencing Today's Market
Strong quarterly earnings from JP Morgan, Citi Bank, and Bank of America was a early catalyst for markets.
Geopolitical tension is hung over the markets, as the US is expected respond to Syria's use of chemical weapons on it's people.
Crude oil traded higher in today's session. WTI crude oil price closed at $67.39/barrel, up 0.48%.
This week Baker Hughes Rig Count rose 7 for a total of 815 rigs.
Market Close Volume Traded And Advance Decline Ratio
At the end of the trading day, the Dow fell 122.91 points, Nasdaq lost 33.60 points, and the S&P down 7.69 points. Total NYSE volume traded, a light 2.94 billion shares. Declining shares modestly outpaced Advancing shares.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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