Wednesday's Market Recap - Dow Falls On Increased Trade War Tensions With China.
What is The Premarket Telling Us?
7:00 AM.
US stock future are mostly lower at this hour, with Dow futures down 28 points, Nasdaq futures down 18 points, and the S&P futures off by a fraction (0.50). Global markets are responding to the news that the Trump Administration is considering increasing the rate of tariffs already in effect on Chinese goods from 10% to 25%, and China has announced it will retaliate. This is scaring the markets.
The Fed/FOMC will announce its decision on interest rates later this afternoon. No rate hike is expected from this meeting.
On The Bond Desk:
The US 10 Year Bond Yield at 2.96%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $68.02/barrel,down 1.08%.
On the Earnings Calendar:
Pandora beats Q2 Earnings estimates, and shares of the company are moving higher.
In M&A News:
None
What About The Asian And European Markets?
Asian and European markets closed lower on Wednesday, due to trade war concerns, between the US and China.
Major Asian markets were lower overnight. Japan (Nikkei 225) down 1.03%, Shanghai down 1.80%, Hong Kong (Hang Seng) down 2.20%
Major European markets were also down . German (DAX) down 0.53%, France CAC 40 down 0.23%, London FTSE 100 down 1.30%
Market And Sector Dynamics
Stocks opened the trading day moderately higher, led primarily by shares of Apple. The Dow rose 46 points, Nasdaq gained 30 points, and the S&P added 5 points. Stock began losing steam a short while after the open, and twenty minutes later the Dow was flat.
Share of Apple was a positive catalyst for stocks today, but investors remained somewhat cautious ahead of the Fed/FOMC interest rate decision this afternoon. The 10 year bond yield also hit the 3% level today, for the first time since June 13th. this year.
At the high of the day, the Dow was up 60 points, before the turning negative for the rest of the session, on worries on trade war fears with China.
Seven of the eleven S&P sectors closed lower. Led by energy, industrials, basic materials, consumer staples, and utilities.
Factors Influencing Today's Market
Ramping up of trade war tensions with China.
Strong Q2 Earnings performance from Apple, and Pandora.
Fed/FOMC announced it is keeping interest rates unchanged in there decision today.
US 10 year bond yield surpassed the 3% level intraday, and closed the day at 3%.
Crude oil traded moderately lower today. WTI crude oil closed at $67.66/barrel, down 1.60%.
EIA Petroleum Status Report shows inventories rose 3.80 million barrels, to 408.7 million barrels, 15% below last year's level.
US Auto Sales for July came in lower than expected at 16.8 million annualized rate vs 17.20 million in June.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks were mixed. The Dow lost 81.37 points, Nasdaq added 35.50 points, and the S&P fell 2.93 points. Total NYSE volume traded, a moderate 3.46 billion shares. Declining shares outpaced Advancing shares almost 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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