Thursday's Market Recap - Down Session On Weakness In Industrials, Rising Input, Costs, Tariffs,

What is The Premarket Telling Us?

7:00 PM.

US stock futures are on the weak side this morning, as investors respond to a myriad of issues, like continued decline in Chinese markets, with Shanghai down more than 2% overnight overnight. Pressure on crude oil prices, and worries about rising US interest rates. Asian markets closed with solid losses overnight. Dow futures down 97 points, Nasdaq futures down 42 points, and S&P down 13 points.

On The Bond Desk:

The US 10 Year Bond Yield 3.18%, up .02%.

Currency Desk:

Euro dollar: 1.15

UK Pound: 1.31

Crude Oil:

WTI crude oil futures at $69.01/barrel, down 1.06% .

On the Earnings Calendar:

American Express reports after the closing bell this evening.

In M&A News:

None.

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What About The Asian And European Markets?

Major Asian markets traded lower overnight. Japan (Nikkei 225) fell 0.80%, Shanghai down 2.94%, Hong Kong (Hang Seng) down 0.03 %.

Major European markets fell in today's session. German (DAX) down 1.07%, France CAC 40 off 0.55%, London FTSE 100 lost 0.39%.

Market And Sector Dynamics

Not withstanding strong quarterly earning this morning from, the likes of Blackstone, BNY Mellon, BB&T, and Traveler's markets opened the trading session moderately lower. The Dow opened down 94 points, Nasdaq down 32 points, and S&P down 11 points. Weak performance by industrials such as Caterpillar, Dupont, and energy related companies are under pressure in the early going. Crude oil prices are declining, following yesterday's large US inventory build, in the EIA Status Report.

Half an hour after the open, stock sank even lower, with the Dow down 170 points, as investor pessimism regarding rising interest rate, tariff fears being and increased input costs, being increasingly mentioned on corporate earnings calls.

Stock gaped significantly lower early in the afternoon session, when news broke that the Treasury Secretary Steve Mnuchin, announced that he would not be attending the Saudi conference, allegedly because of the apparent murder of Journalist Jamal Khashoggi. This signaled that the Administration may be taking this matter much more seriously than, the President first indicated.

At the low of the day, the Dow was down 471 points.

The selloff was broad based, but orderly, and market tone was negative. Nine of the eleven S&P sectors closed today's session lower. Consumer discretionary, technology, communication services, industrials, financials, basic materials, healthcare, and energy were the major laggards.

Factors Influencing Today's Market

• Better than expected quarterly earnings from Blackstone, BNY Mellon, BB&T, and Traveler's.

• Weakness in the industrial sector, led by Caterpillar and others due to tariffs, currency, increased input costs.

• Treasury Security, Steven Mnuchin, withdrawal from the Saudi conference.

• US 10 year bond yield ticked back towards it recent higher levels today.

• Crude oil traded moderately lower today. WTI crude oil closed at $68.65/barrel, down 1.58%.

• Asian markets lost ground last night, with China (Shanghai giving up nearly 3%).

Market Close Volume Traded And Advance Decline Ratio

At the end of trading markets were solidly negative. The Dow dived 327.23 points (1.27%), Nasdaq fell 157.56 points (2.06%), and the S&P lost 40.43 points (1.44). Total NYSE volume traded, a moderate 3.57 billion shares. Declining shares outpaced Advancing shares better than 3:1.

Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.