Tuesday's Market Recap - Trade Talks With China Takes Center Stage, As US Sends Negotiation Team
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly in the red this morning. Dow futures are down 32 points, Nasdaq futures down 6.25 points, and S&P futures down 1.25 point. Market learned overnight, that the Trump Administration has approved a one month extension of the Aluminium and Steel tariffs for our European Union, Canada, Mexico, hoping to complete negotiations, before any tariffs goes into effect.
A trade delegation from the Administration leaves for China today, in an attempt to initiate trade negotiations. The outcome seems uncertain, at best, and this could cast a cloud over markets today.
All eyes will be on Apple, when it reports earnings after the close of trading this evening. There has been speculation, based on analysts channel checks, that sales of the iPhone 10, has been weak, and could have a negative impact on Apple's revenue.
The Fed/FOMC begins its two day policy meeting today, and will announce any policy decisions tomorrow afternoon. No interest rate hike is expected, at this meeting.
On The Bond Desk:
The US 10 Year Bond Yield at 2.94%.
Currency Desk:
Euro dollar: 1.20
UK Pound: 1.36
Crude Oil:
WTI crude oil futures at $67.94/barrel, down 0.92%.
On the Earnings Calendar:
Drug makers, Pfizer and Merck reported better than expected earning performance before the opening bell this morning. Both companies beat analyst earnings estimates, but revenues fell shy of expectations.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up 0.18%, Shanghai up 0.23%, Hong Kong (Hang Seng) closed for Labor Day.
Some European markets were closed for Labor Day Holidays. German (DAX) closed, France CAC 40 closed, London FTSE 100 up 0.15%.
Market And Sector Dynamics
Stocks opened the trading day with moderate losses. The Dow lost 80 points, Nasdaq down 10 points, and the S&P gave up 6 points. Crude oil is also trading lower early in the morning session. WTI crude oil prices down 1.15%, at $67.76/barrel.
Shares of Apple are moving higher again today, ahead of its earning report this evening.
Market sank steadily lower during the morning and early afternoon session, as investor worried about geopolitical risk, tariffs, strengthening US dollar, inflation risk. At the low of the day, the Dow was down more than 350 points, before recovering most of those losses just before the close.
Six of the eleven S&P sectors closed the session with losses, led by consumer staples, telecommunication services, energy, industrials. Technology and real estate were higher.
Factors Influencing Today's Market
Investors concern around trade negotiation, and impending trade tariffs.
Better than expected quarterly earnings performance from both Pfizer and Merck. The companies beat earnings, but revenues came in slightly less than expected.
Crude oil lost some ground today. WTI crude oil price closed at $67.25/barrel, down 1.63%.
Asian markets were mostly higher in their session.
US Vehicle Sales for April came in at an annualized 17.2 million rate, as expected.
Fed/FOMC began it two day policy meeting today. No rate hike is expected from this meeting.
April PMI Manufacturing Index came in at 56.5 as was expected.
Market Close Volume Traded And Advance Decline Ratio
Markets were mixed at the end of trading. The Dow lost 64.10 points, Nasdaq gained 64.44 points, and the S&P rose 6.75 points. The NYSE volume traded, 3.50 billion shares. Advancing shares outpaced Declining shares just better than even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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