Tuesday's Market Recap - Dow Recovery From Morning Selloff, Thanks To Verizon And McDonald's
What is The Premarket Telling Us?
7:00 PM.
US stock futures are all red this morning. Dow futures down 247 points, Nasdaq futures down 100 points, and S&P futures down 33 points. The futures are taking their cue from Asian markets that fell hard overnight, with the China down more than 2%.
On The Bond Desk:
The US 10 Year Bond Yield at 3.20%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $68.19/barrel, 1.69%.
On the Earnings Calendar:
3M and Caterpillar, disappointed investors with weaker than expected quarterly earnings.
McDonald's and Verizon reported a blowout earnings quarter.
United Technology beat quarterly earnings, but shares of the company traded lower.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) lost 2.67%, Shanghai down 2.26%, Hong Kong (Hang Seng) down 3.08%.
Major European markets fell in today's session. German (DAX) down 2.08%, France CAC 40 off 1.69%, London FTSE 100 lost 1.24%.
Market And Sector Dynamics
Stocks opened the trading session with the Dow down 435 points, Nasdaq down 140 points, and S&P down 45 points. Markets being pulled down not only by another selloff in Asian overnight, but also disappointing quarterly earnings from 3M, Caterpillar, exerting downward pressure on the Dow. Things could be worst, were it not for strong quarterly earning from McDonald's, and Verizon, the only Dow components that are trading higher.
One hour after the open, the selloff intensified, with the Dow down more than 500 points. Stocks turned around at noon, and gradually staged a massive comeback, at one point the Dow hovered just 40 points, below the flat line, before losing some momentum, just prior to the close.
Nine of the eleven S&P sectors closed the session with losses, led by energy, industrials, basic materials, financials, healthcare, and utilities. Real estate, consumer staples, and communication services were higher.
Factors Influencing Today's Market
Disappointing quarterly earnings from 3M, and Caterpillar was a negative for markets today.
Strong earnings from McDonald's and Verizon.
Crude oil traded solidly lower in the session. WTI crude oil closed at $66.43/barrel, down 3.96%.
Both Asian and European stocks traded lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets had staged a massive turnaround. The Dow lost 125.98 points, Nasdaq gave up 31.09 points, and the S&P fell 15.19 points. Total NYSE volume traded, a solid 4.31 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.
Comments