Tuesday's Market Recap - US 10 Year Bond Hits 3% Intraday, For First Time In 4 Years. Stocks Sol
What is The Premarket Telling Us?
7:00 AM.
Stock futures are solidly in the green this morning. Dow futures are up 136 points, Nasdaq futures up 44.75 points, and S&P futures up 15 points. Investor are anticipating a slew of earning this morning from a number of major corporation. Google reported strong results after the bell yesterday evening.
On The Bond Desk:
The US 10 Year Bond Yield at 2.97%.
Currency Desk:
Euro dollar: 1.22
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $68.92/barrel, up 0.41%.
On the Earnings Calendar:
Alphabet (Google) beats 1 Qtr. Earning and Revenue expectations, after the closing bell last evening.
Verizon handily beats analyst earnings and revenue estimates.
Caterpillar also reported a blowout 1 Qtr. earning results.
In M&A News:
Investors learned late this evening that a deal could be announced as early tomorrow, in that on again, off again, Takeda offer to buy Shire.
What About The Asian And European Markets?
Major Asian markets were all higher. Japan (Nikkei 225) up 0.86%, Shanghai added 1.99%, Hong Kong (Hang Seng) 1.26%
Major European markets also rose today. German (DAX) 0.36%, France CAC 40 up 0.10%, London FTSE 100 up0.36%.
Market And Sector Dynamics
Stock opened moderately higher, with the Dow adding 84 points, Nasdaq gaining 29 points, and the S&P up 8 points. Thanks to strong quarterly from a variety of large US technology, and industrial companies, like, Google, 3M, Caterpillar, and Verizon.
Early in the morning session the Dow surged to a high 125 points, and it looked like we were in for a strong up day. That's when things changed. The US 10 year bond yield briefly hit the scary 3% level, and all bets were off. The markets turned lower, starting with technology shares. At the low of the day, the Dow was down 619 point.
Eight of the eleven S&P sectors close the session with losses. Industrials, materials, technology, consumer discretionary, energy, healthcare, and financials.
Factors Influencing Today's Market
The US 10 year bond yield briefly hit the 3.00% mark this morning, for the first time in four years, triggering a selloff in stocks.
Despite strong 1st. Quarter earnings results from Alphabet, Caterpillar, 3M, they all sold off during the session.
Crude oil lost ground in trading today. WTI crude oil price closed at $67.83/barrel, down 1.18%.
Major Asian and European markets closed their sessions with gains.
March New Home Sales came in at 694,000, better than the 687,000 consensus.
April Consumer Confidence came in a strong 128.70 vs 127 for March.
Market Close Volume Traded And Advance Decline Ratio
Markets were down for the fourth day in a row. The Dow sank 424.56 points, Nasdaq lost 121.25 points, and the S&P down 25.73 points. Total NYSE volume traded, a moderate 3.68 billion shares. Advancing shares outpaced Declining shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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