Wednesday's Market Recap - Dow Lower On Concern About Additional US - China Tariffs.
What is The Premarket Telling Us?
7:00 AM.
Stocks are pointing to a modestly lower open this morning. US stock futures are all slightly negative. Dow futures down 35 points, Nasdaq futures down 3 points, and the S&P futures down 4.25 points. The Fed/FOMC will release minutes of its last meeting later today.
On The Bond Desk:
The US 10 Year Bond Yield at 2.84%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.28
Crude Oil:
WTI crude oil futures pointing higher at $66.72/barrel, up 1.34%.
On the Earnings Calendar:
Target stores tops profits and sales estimates
Home improvement retailer, Lowe's also topped earnings and revenues but outlook guidance was lower than expected.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets close mixed overnight. Japan (Nikkei 225) rose 0.64%, Shanghai fell 0.70%, Hong Kong (Hang Seng) gained up 0.63%.
Major European markets were modestly up today. German (DAX) added 0.01%, France CAC 40 gained 0.22%, London FTSE 100 rose 0.11%
Market And Sector Dynamics
Stocks opened the trading day slightly lower, with the Dow slipping 2.77 points, Nasdaq dropped 15 points, and the S&P down 1.91 point. Markets are a little cautious, after the Manafort guilty verdict, and the Cohen guilty plea of yesterday, as well as uncertainty, around China - US trade talks. Additional US tariffs on some goods from China goes into effect at midnight tonight.
Stocks trended lower for the entire trade session, despite strong earnings results from Target Stores, and Lowe's the home improvement retailer. Both results, along with that of most retailers reporting during the Q2 earning season, confirms that the consumer is in great shape. In fact, Target's sales growth was the best comparison sales growth in thirteen (13) years, leading the CEO to comment, that this was the strongest he has ever seen the consumer, in his career.
Seven of the eleven S&P sectors closed the session with losses, led by telecommunication service, industrials, utilities, real estate, and consumer staples. Energy and technology had moderate gains.
Factors Influencing Today's Market
Continued strong performance in the retail sector. Target and Lowe's topped Q2 Earnings expectations.
Crude oil traded moderately higher today. WTI crude oil closing price $ 67.85/barrel, up 0.76%.
This week's EIA Petroleum Status Report show crude oil inventories fell 5.8 million barrels, a positive for crude prices.
New US tariffs on some China goods take effect at 12:00 Midnight, tonight.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks were mixed. The Dow sank 88.69 points, Nasdaq rose 29.92 points, and the S&P slipped 1.14 point. Total NYSE volume traded, a light 2.67 billion shares. Advancing shares just outpaced Declining shares better than even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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