Tuesday's Market Recap - Rising Interest Rates & IMF Global Growth Downgrade Scare Markets.
What is The Premarket Telling Us?
7:00 PM.
US stock futures are all signalling red this morning. Dow futures down 97 points, Nasdaq futures down 27 points, and the S&P futures down 11 points. Asian markets were lower overnight. We also learnt this morning that the IMF has downgraded global economic forecast for the year, because of the effect of US China trade war concerns.
On The Bond Desk:
The US 10 Year Bond Yield at 3.23%, up .001.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $74.86/barrel, up 0.77%.
On the Earnings Calendar:
Third Quarter Earnings begin at the end of the week.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mostly lower. Japan (Nikkei 225) down 1.32%, Shanghai down up 0.17%, Hong Kong (Hang Seng) down 0.11%.
Major European markets were modestly higher in today's session. German (DAX) up 0.25%, France CAC 40 up 0.35%, London FTSE 100 up 0.06%.
Market And Sector Dynamics
Markets started the trading day modestly negative. The Dow fell 18 points, Nasdaq fell 7 points, and the S&P lost 2 points. Once again, rising yields continue to pressure stocks, and if that were not enough the International Monetary Fund (IMF) has lowered it global growth forecast, citing the US China Trade War. Stocks dived lower after the open, with the Dow down 150 points, at the low.
Stocks recovered around noon, with the Dow up over 50 points. The rally was short lived however, as stocks sold off once again, and remained below the flat line for the rest of the session.
A few big technology stocks like Amazon, Facebook, Netflix, and Twitter caught bids today, as investors facing rising bond yields, pondered, how to navigate this new higher interest rate environment.
Six of the eleven S&P sectors closed today's session with losses, led by basic materials, industrials, financials, consumer discretionary, and consumer staples. Energy, utilities, real estate, and technology closed with gains.
Factors Influencing Today's Market
The International Monetary Fund cut it global growth forecast.
Crude oil traded higher today. WTI crude oil closed at $74.75/barrel, up 0.62%.
The US 10 year bond yield ended the day at 3.208%, down 0.025.
Asian markets were mostly lower overnight.
Hedge Fund Pershing Square's Bill Ackman announced a $900 million stake in Starbucks.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading, markets were mixed. The Dow lost 56.21 points, Nasdaq added 2.07 points, and S&P lost 4.09 points. Total NYSE volume traded, a moderate 3.46 billion shares. Declining shares outpaced Advancing shares slightly better than 1:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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