Wednesday's Market Recap - Stocks Are Currently In A Funk, As The Bears Have Gained The Upper Ha
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly higher this morning's premarket. Dow futures up 28 points, Nasdaq futures up 21 points, and S&P futures up 3 points. Today the FOMC will release a policy statement, but no interest rate hike is expected. Investors will be looking for a slightly less hawkish tone from the Fed, in light of recent softening of economic data. Shares of Apple are expected to be the outperformer today, after announcing a blowout earning performance after the close yesterday.
On The Bond Desk:
The US 10 Year Bond Yield sits at 2.98%
Currency Desk:
Euro dollar: 1.20
UK Pound: 1.36
Crude Oil:
WTI crude oil futures at $67.50/barrel, up 0.37%.
On the Earnings Calendar:
Apple reported blowout earnings performance, after the close yesterday.
Master Card reported strong 1 Qtr. earnings performance. The company handily beat earnings and revenue estimates.
CVS Health also beat first quarter earnings estimates, but revenue was slightly less than expected.
Snap reported a disappointing quarter after the close yesterday. Shares of the company are lower, as a result.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 0.16%, Shanghai down 0.03%, Hong Kong (Hang Seng) down 0.27%
Major European markets closed with gains. German (DAX) up 1.15%, France CAC 40 added 0.16%, London FTSE 100 rose 0.30 %.
Market And Sector Dynamics
Stocks were down at the start of today's session. The Dow dipped 1.42 point, Nasdaq lost 7.74 points, while the S&P down a fraction 0.56 point. Investor were somewhat cautious ahead of the Fed statement expected later today.
Shares of Apple continued to climb higher on the back of its stellar earnings performance yesterday. Mastercard also traded higher, early in the session. Unfortunately, the broader market, is not participating, as investors appear confused, as the market's direction seems uncertain, at best.
Stocks traded in a narrow range below the flat line for most of the morning session, moving higher in the immediate aftermath of the Fed policy announcement at 2:00 PM, but sank significantly lower, as short while later.
Except for a brief moment around mid-afternoon, the Dow remained in negative territory for the entire session, and closed at the low of the day.
Market tone was negative but orderly. Nine of the ten S&P sector closed the session with losses, led by consumer staples, telecommunication services, healthcare, financials, and consumer discretionary.
Factors Influencing Today's Market
Strong quarterly performance from Apple, and Mastercard.
CVS and Snap earnings disappointed investors.
The Fed/FOMC left interest rates at the existing levels, and its policy statement was slightly less hawkish.
Crude oil prices rose in today's session. WTI crude oil price closed at $67.93/barrel, up 1.01%.
ADP Employment Report for April, shows private sector payrolls added 204,000 new jobs.
Market Close Volume Traded And Advance Decline Ratio
Markets were lower, at the end of today's trading. The Dow sank 174.07 points, Nasdaq lost 29.81 points, and the S&P off 19.13 points. Total NYSE volume traded, Declining shares outpaced Advancing shares just better than even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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