Tuesday's Market Recap - Dow Down Big As Trade War With China Dominates.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are deep in the red this morning, as investors worry about escalating trade tensions between the US administration and China. There is a feeling in the markets that this could get out of hand. Dow futures are down 330 points, Nasdaq down 77 points, and S&P down 31 points. Asian markets were significantly lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.93%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $64.84/barrel, down 3.06%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were down sharply. Japan (Nikkei 225) lost 1.77%, Shanghai fell 3.78%, Hong Kong (Hang Seng) down 2.78%.
Major European markets also lost ground today. German (DAX) down 1.22%, France CAC 40 down 1.10%, London FTSE 100 slipped 0.36%.
Market And Sector Dynamics
Stocks are reacting once again to rising trade tensions between US and China. The Dow opened down 311 points, Nasdaq lost 71 points, and the S&P fell 23 points. Shares of Boeing and Caterpillar are losing ground, shaving 100 points off the Dow. At this point, the Dow has lost all its gains for 2018.
The Dow remained below the 25,000 level for the entire session, although it did recover some of the morning's losses, by midday, and traded in a narrow range, for the rest of the afternoon.
Market tone was negative for the entire session, with six of the eleven S&P sectors losing ground in the session, led by industrials, basic materials, technology, and financials. Telecommunications services, utilities, consumer staples, and healthcare were higher.
Factors Influencing Today's Market
Increasing trade tensions between the US and China dominated the day's trading session.
Crude oil fell moderately in today's session. WTI crude oil price ended the day at $65.07/barrel, down 1.18%.
The US 10 year bond yield has held on just below the 3% level.
The US dollar continues to strengthen.
Both Asian and European markets fell their respective sessions.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading, the Dow lost 287.26 points, Nasdaq lost 21.44 points, and the S&P down 11.16 points. Total NYSE volume traded, 3.58 billion shares. Declining shares outpaced Advancing shares by 1.33:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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