Monday's Market Recap - Stocks Retreat, As US-China Trade War Looms Large.
What is The Premarket Telling Us?
7:30 AM.
This morning's market set up is looking fairly positive. Dow futures higher by 88 points, Nasdaq futures up 42 points, S&P futures up 11 points. China trade talks are again on tap, as the President proposes an additional round of tariffs on China, and they vow to retaliate.
Jack Ma, Alibaba's Executive Chairman, plans to step down from the company one year from now.
Chairman & CEO, Les Moonves, has resigned from CBS, after sexual assault allegations.
On The Bond Desk:
The US 10 Year Bond Yield at 2.94%, up 0.06% or (six basis points).
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $68.27/barrel, up 0.77%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded mostly lower . Japan (Nikkei 225) added 0.30%, Shanghai was down 1.21%, Hong Kong (Hang Seng) lost 1.33%.
Major European markets were modestly higher in their session. German (DAX) gained 0.22%, France CAC 40 rose 17.32%, London FTSE 100 slipped 1.60%.
Market And Sector Dynamics
Stocks soared higher at the start of trading. The Dow jumped 110 points, Nasdaq surged 40 points, and the S&P gained 12 points. Crude oil prices were up early, with WTI crude at $68.22/barrel, up 0.65%.
Stocks steadily traded lower as the morning session progressed, and lost all its gains, two hour after the strong open, as China warned that it would retaliate, if the US made good on its threat to add more tariffs on more Chinese goods. Clearly the market is growing more fearful, as this tit-for-tat trade war continues.
Investors are also smarting from the strong employment number on Friday, incuding the 2.90% year over year increase in average hourly wages.
Shares of Apple, were under immense pressure today, as the President warns that the company that it should build its iPhone in the US, instead of China, to avoid tariffs on their imports. Shares of Alibaba, also traded lower today, as Chairman and CEO, Jack Ma, stated that he is stepping down in 2019.
Eight of the ten S&P sectors closed today's session with gains,led with utilities, real estate, industrials, telecommunication services, consumer discretionary, consumer staples, and technology. Healthcare was lower in the session.
Factors Influencing Today's Market
Threat of more US tariffs on Chinese goods still hangs over the markets.
President Trump tweets that Apple should build the iPhone in the US instead of China, to avoid tariffs.
Alibaba Executive Chairman, Jack Ma, announced he will step down from the company in September 2019
Strong August employment number and solid increase in average hourly wages stoke potential inflation fears.
Crude oil prices were modestly lower. WTI crude oil prices closed at $67.58/barrel, down 0.78%.
Chairman and CEO, Les Moonves, has resigned from CBS, due to multiple accusations of sexual improprieties.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, stocks were mixed. The Dow fel 59.47 points, Nasdaq gained 21.62 points, and the S&P gained 5.45 points. Total NYSE volume traded, a light 2.71 billion shares. Advancing shares outpaced Declining shares by 1.60:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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