Wednesday's Market Recap - A Dramatic Intraday Reversal For Major Indices.
What is The Premarket Telling Us?
7:00 AM.
This morning's market set up is moderately negative. Dow futures are currently down 51 points, Nasdaq futures down 28 points, and S&P futures down 3 points.
On The Bond Desk:
The US 10 Year Bond Yield sits at 3.06%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $71.74/barrel, up 0.52%.
On the Earnings Calendar:
Home improvement retailer, Lowe's reported strong first quarter results, before the opening bell.
Target also reported before the bell. The company beat first quarter estimates for earnings and revenues.
Luxury retailer, Tiffany reported a blow out quarter.
In M&A News:
Comcast announced this morning that it is seriously preparing paper work for an all cash deal to bid for the assets of Twenty First Century Fox. This will rival the existing stock bid from Disney.
What About The Asian And European Markets?
Major Asian markets sold off today. Japan (Nikkei 225) was down 1.18%, Shanghai 1.41%, Hong Kong (Hang Seng) down 1.82%.
Major European markets closed with losses. German (DAX) lost 1.47%, France CAC 40 down 1.32%, London FTSE 100 gave up 1.13%.
Market And Sector Dynamics
Stocks opened the trading day modestly lower. Half an hour after the open, the Dow was down 76 points, Nasdaq down 23 points, and the S&P down 9 points. The 10 year bond yield has backed off their recent highs. Adding more pressure to markets, the President, has commented that the planned summit with Kim Jun Un may not take place.
By 11:00 AM, the Dow was down 167 points, the low of the day. Stocks began recovering some of the morning losses, early in the afternoon session, after the the minutes of the last Fed meeting was released. It indicated that the Feds allow the rates to fluctuate above or below the stated 2% interest rate target, Investors interpreted this as being dovish, and pushed markets higher.
Six of the eleven S&P sectors closed the session with modest gains, led by utilities, technology, real estate, consumer discretionary. Financials, and telecommunications services were major laggards in the session.
Factors Influencing Today's Market
Strong quarterly earnings from home improvement retailer Lowe's.
Blowout quarterly earning from luxury jeweler Tiffany.
Target also reported a good quarter.
Comcast announced preparations for a cash bid for Twenty First Century Fox.
WTI crude oil closed trading modestly lower, at $71.84/barrel, down 0.46%.
This weeks EIA status show crude oil inventories rose 5.4 million barrels
Release of the FED/FOMC Minutes
Market Close Volume Traded And Advance Decline Ratio
At the close of trading the Dow rose 52.40 points, Nasdaq gained 47.50 points, and the S&P added 8.85 points. Total NYSE volume traded, a moderate 3.29 billion shares. Advancing and Declining shares were basically even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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