Monday's Market Recap - New Round Of Tariffs Takes Effect - China Hits Back.
What is The Premarket Telling Us?
7:00 PM.
Taking our cue from the US stock index futures, markets should open modestly lower this morning. Dow futures down 38 points, Nasdaq futures down 28 points, and the S&P down 11 points. Over the weekend, Comcast won the bid for Fox's SKY network, over Disney.
US China trade war takes center stage again today, as the latest round of tariffs takes effect today, and the Chinese reacted by increasing its own tariff rate on some US products, signalling that this trade war is heating up.
On The Bond Desk:
The US 10 Year Bond Yield at 3.07%, down 0.01%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $71.93/barrel, up 1.52%.
On the Earnings Calendar:
None.
In M&A News:
Sirius announced it is buying Pandora streaming music in a bid worth $3.80 Billion.
Barrick Gold buying Rand Gold, for $6 Billion, making it the world's largest gold mining company
What About The Asian And European Markets?
Major Asian markets mixed. Japan (Nikkei 225) gained 0.82%, Shanghai down 0.50%, Hong Kong (Hang Seng) down 1.62%.
Major European markets fell modestly in today's session. German (DAX) down 0.64%, France CAC 40 off 0.33%, London FTSE 100 lost 0.42%.
Market And Sector Dynamics
Stocks opened the trading day significantly lower, with the Dow down 90 points, Nasdaq fell 66 points, and the S&P was down 11 points. WTI crude oil continues to rise, currently at $72.05/barrel, up 1.78%. The new US China tariffs is definitely dominating markets today, even with the announcement of the Sirius, and Barrick Gold merger deals.
Stocks sank even lower, after reports out of Washington, that Deputy Attorney General, Rod Rosenstein, the official who is personally overseeing the Special Counsel Muller's work had resigned or was fired by the administration.
Markets remained in negative territory for the entire trading, closing at or near the lows of the day.
Seven of the eleven S&P sectors closed the session with losses, led by real estate, consumer staples, basic materials, industrials, financials, utilities, and consumer discretionary.
Factors Influencing Today's Market
US China trade war dominated the markets today.
Crude oil continues to march higher, with WTI crude close at $72.08/barrel, up 1.84%.
Barrick Gold buying Rand Gold in a deal worth $6 Billion.
Sirius announced it's buying Pandora for $3.80 Billion.
The US 10 year bond yield remains comfortably at the 3.07%.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading, the Dow tanked 181.45 points, Nasdaq gained 6.29 points, and the S&P lost 10.30 points. Total NYSE volume traded, a moderate 3.33 billion shares. Declining shares outpaced Advancing shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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