Wednesday's Market Recap - Mixed Session, On Strong Earning From Morgan Stanley & Rising Cru
What is The Premarket Telling Us?
7:00 AM.
This morning's market set up is moderately positive, ahead of the start of trading. Dow futures up 55 points, Nasdaq up 20 points,
and the S&P up 7.25 points. The cavalcade of first quarter bank earnings continues, with investors anxiously awaiting Morgan Stanley report, out later this morning.
Crude oil also continues to rise, with WTI crude prices nearing the $70.00/barrel level.
On The Bond Desk:
The US 10 Year Bond Yield at 2.81%
Currency Desk:
Euro dollar: 1.23
UK Pound: 1.42
Crude Oil:
WTI crude oil futures at
On the Earnings Calendar:
Strong Quarterly Earnings Report from Morgan Stanley, before the bell this morning. The company beat analyst expectation on earnings, revenues, and other metrics.
IBM quarterly earnings also beat earnings and revenue, but guidance was softer than expectation.
In M&A News:
AT&T and Time Warner merger case is currently in the courts, and should be nearing a decision soon.
What About The Asian And European Markets?
Major Asian markets traded higher overnight . Japan (Nikkei 225) gained 0.1.42%, Shanghai up 0.80%, Hong Kong (Hang Seng) up 0.74%.
Major European markets closed with gains . German (DAX) added 0.04%, France CAC 40 up 0.50%, London FTSE 100 up 1.26%.
Market And Sector Dynamics
Markets opened the trading day modestly higher. The Dow added 34 points, Nasdaq up 11 points, and the S&P added 3.72 points. Solid corporate earnings by Morgan Stanley, and the continued steady rise in crude oil prices, helping shares of energy companies to push higher.
Stocks quickly fell into negative territory shortly after the open, as investors shifted their focus to the US 10 year bond yield, as it started to show signs of wanting to move higher. Stocks jumped modestly, in and out of positive territory during the session, mostly under pressure from shares of IBM, as the company was being punnished, for weaker than expected guidance, despite beating analysts earnings, and revenue expectation.
Markets were orderly, volume was moderate. Six of the eleven S&P sectors traded lower on the day, led by consumer staples, telecommunications services, utilities, and financials. Energy, industrials, basic materials, and consumer discretionary were higher.
Factors Influencing Today's Market
Strong quarterly earnings from banker Morgan Stanley, confirming strong trading revenues, from most of the big banks, as a result of market volatility.
Pressure from shares of IBM, after beating analyst earnings and revenue expectations, but missed guidance and fell.
Crude oil prices jumped in today's trading. WTI crude oil closed at $68.47/barrel, up 2.93%.
This Week's EIA Status Report shows crude oil inventories fell 1.1 million barrels to 427.6 million, and 19.7% lower, year over year.
Market Close Volume Traded And Advance Decline Ratio
Stocks closed mixed today. The Dow fell 38.56 points, Nasdaq gained 14.14 points, and the S&P added 2.25 points. Total NYSE volume traded, a moderate 3.35 billion shares. Advancing and Declining shares were mostly even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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