Monday's Market Recap - Stock Reversed After Negative Comments About Iran Deal, From Israeli Pri
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately higher in the premarket, suggesting the markets will open in positive territory. Dow futures up 98 points, Nasdaq futures gained 33.50 points, and S&P futures added 8.50 points. First quarter earning season continues this week many corporations reporting this week.
News of T-Mobile proposal to buy Sprint Network for $26 Billion announced over the weekend, could be a catalyst for markets today.
On The Bond Desk:
The US 10 Year Bond Yield at 2.96%.
Currency Desk:
Euro dollar: 1.20
UK Pound: 1.37
Crude Oil:
WTI crude oil futures sits at $67.37/barrel, up 1.07%.
On the Earnings Calendar:
McDonald's reported blowout 1 Qtr. financial results. The company beat analyst earnings, revenue, and compstore estimates.
In M&A News:
T-Mobile announced plans to purchase Sprint Network in a deal worth an estimates $26 Billion.
Marathon is buying Andeavor for $23 Billion.
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) 0.66%, Shanghai up 0.23%, Hong Kong (Hang Seng) up 1.74%
Major European markets closed with gains. German (DAX) up 0.25%, France CAC 40 0.68%, London FTSE 100 0.09%
Market And Sector Dynamics
Stocks opened the trading session in positive territory, with the Dow surging 126 points, Nasdaq rose 16 points, and the S&P up 6 points. Strong quarterly earning from McDonald's, is pushing the shares higher. Shares of Apple are also on the rise, perhaps in anticipation of its earning, which will be reported after the closing bell on Tuesday.
Crude oil is also moderately lower, this morning. WTI crude oil price sits at $67.49/barrel, down 0.91%. Today's read on Chicago PMI for April, came in at a respectable 57.9, a bit shy of expectations.
Markets remained elevated during the morning session, but turned lower, after comments from Israeli Prime Minister, Benjamin Netanyahu, made some hawkish comments that Iran, was not complying with the Nuclear deal. Market sold off on these comments, and closed near the lows of the day.
Crude oil surged higher on the the Netanyahu comments, with WTI reaching an intra-day high of $69.33, and just shy of that $70/barrel level.
Today's stock reversal was orderly, with all eleven S&P sectors closing with losses, led by telecommunication services, healthcare, industrials, and basic materials, being the major laggards.
Factors Influencing Today's Market
Solid quarterly earnings performance from McDonald's
Merger announcement from T-mobile and Sprint, in the wireless space.
Merger announcement from Marathon Oil and Andeavor, in the energy space.
Softer than expected 57.9 read on April Chicago.
Crude oil surged on the back of comments from the Israeli Prime Minister. WTI crude oil price closed at $68.53/barrel, up .81%.
Market Close Volume Traded And Advance Decline Ratio
On the final trading session of April, the major US markets were lower. The Dow lost 148.04 points, Nasdaq fell 53.53 points, and the S&P down 21.86 points. Total NYSE volume traded, 3.68 billion shares. Declining shares outpaced Advancing shares by 1.7:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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