Monday's Market Recap - Investors Worry, Journalist's Killing Could Test Saudi US Relations.
What is The Premarket Telling Us?
7:00 PM.
US stock futures are down 115 points, Nasdaq down 61 points, and the S&P up 14.75 points. Geopolitical tensions between the US and Saudi Arabia seems to be having a negative effect on markets, since the assumed killing of Jamal Khashoggi, a Washington Post journalist, US Permanent Resident, and Saudi citizen. Mr. Khashoggi was seen entering the Saudi Consulate in Istanbul, Turkey, and has since disappeared.
On The Bond Desk:
The US 10 Year Bond Yield sits at 3.14%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $71.80/barrel, up 0.64%.
On the Earnings Calendar:
Bank of America reported strong 3rd. Quarter financial results, beating earnings and revenue expectations.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed more than one percent lower. Japan (Nikkei 225) fell 1.87%, Shanghai down 1.49%, Hong Kong (Hang Seng) down 1.38%.
Major European markets fell mostly up in today's session. German (DAX) gained 0.78%, France CAC 40 off 0.02%, London FTSE 100 gained 0.48%.
Market And Sector Dynamics
Stocks opened the trading session moderately lower. The Dow lost 45 points, Nasdaq down 72 points, and the S&P lost 13 points. Shares of technology companies being the main laggards early in the session. Weighing negatively on markets this morning, is the the report that Sears, that old staple of department stores, has file for Chapter 11 Bankruptcy Protection, from its creditors.
Bank of America posted strong third quarter results this morning. The company beat on both the top and bottom, pushing the shares up early in the session.
Geopolitical problems with Saudi Arabia has taken center stage, this morning as the apparent murder of Jamal Khashoggi, by Saudi agents in Turkey, become more likely. Investors are worried about what that will do to the oil market, if the US put sanctions on the Saudi's as a result. Crude oil prices are down modestly in trading so far today.
Many US and global financial luminaries, and new networks, are beginning to cancel their participation in the huge Saudi conference, dubbed 'Davos In The Desert.' JPMorgan's Jamie Dimon, Blackstone's Steve Schwarzman, and Blackrock's Larry Fink have all withdrawn their participation.
Today's trading session was mostly negative, volatile, with stock trading in and out of negative territory. Seven of the eleven of the S&P session closed the session lower. Technology, energy, healthcare, financials, basic materials, consumer discretionary, and communication services, led the session lower. Consumer staples, real estate, and utilities were higher.
Factors Influencing Today's Market
The situation in Saudi Arabia regarding missing and presumed dead journalist, Jamal Kashoggi.
Strong earnings performance from Bank of America.
Crude oil rose moderately in the session. WTI crude price closed at $71.78/barrel, up 0.72%.
Major Asian markets closed decidedly lower.
Sears filed for Chapter 11 Bankruptcy Protection.
The US 10 year bond yield closed today's session at 3.16%
Market Close Volume Traded And Advance Decline Ratio
At the close of trading the Dow fell 89.44 points, Nasdaq dropped 66.15 points, and the S&P fell 16.34 points. total NYSE volume traded, a moderate 3.26 billion shares. Advancing shares outpaced Declining shares by 1.45:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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