Wednesday's Market Recap - Dow Sheds 600 Plus Points As Earnings, Rising Rates, Tariffs, And Geo
What is The Premarket Telling Us?
7:00 PM.
Stock futures are moderately negative again this morning, suggesting we could continue yesterday's selloff. Dow futures down 107 points, Nasdaq futures down 47 points, and S&P futures down 15 points. Quarterly earnings season is heating up, with important for earnings reports, from Boeing, UPS and others, due out before the start of trading.
On The Bond Desk:
The US 10 Year Bond Yield 3.17%, down 0.03%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $66.50/barrel, up 0.11%.
On the Earnings Calendar:
Boeing reported strong quarterly earnings results, with shares of the company jumping higher in the premarket.
UPS and Texas Instruments missed quarterly earnings expectation, taking down the transportation and chip sector.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mixed. Japan (Nikkei 225) gained 0.37%, Shanghai up 0.33%, Hong Kong (Hang Seng) down 0.38%.
Major European markets were mixed in today's session. German (DAX) down 0.73%, France CAC 40 off 0.29%, London FTSE 100 up 0.11%.
Market Direction And & Sector Dynamics
Stocks opened the trading session mixed, with the Dow gaining 87 points, Nasdaq fell 8 points, and the S&P slipped a fraction (0.32). Strong quarterly earnings performance, from Boeing, which has share of that company soar in the premarket and at the open.
Markets sold off shortly after the open, as disappointing quarterly earnings from United Parcel Service (UPS), and Texas Instruments exerted immense downward pressure on the Dow, with that index falling more than 300 points, in the morning session. Adding to that pressure, are investor concerns about peak earning, rising interest rates, slowing China economy, tariffs and rising input costs, being mentioned by more and more companies in their earnings reports. The result, many investors decided to take profits.
As the selloff continued later in the afternoon, and some important technical levels for the indices were breach, the selling intensified taking stocks even lower, forcing the major indices to close at the lows of the session.
Market tone was negative, and the selloff was orderly. Eight of the eleven S&P sectors closed the session with significant losses, led by communication services, and technology, down more than 4%. Energy, industrials, consumer discretionary, healthcare, and basic materials, were down more than 3%, and financials down 2.69%.
With today's selloff, the Dow and the S&P has lost all their 2018 gains. While the Nasdaq of down 10%, and is in correction territory.
Factors Influencing Today's Market
Disappointing quarterly earnings from Texas Instruments, and UPS were the main driver of today's selloff.
Worries about pace of Fed rate hike, and rising interest rates.
Fear of declining global growth, including China, tariffs, and trade war.
Crude oil traded modestly up today. WTI crude oil closed at $66.82/barrel, up 0.59%.
This week's EIA Petroleum Status Report shows crude oil inventories rose 6.3 million barrels to 422.8 million barrels.
Market Close Volume Traded And Advance Decline Ratio
The bears had the upper hand in today's trading session. All the major indices recorded catastrophic losses. The Dow sank 608.01 points, Nasdaq tanked 329.14 points (or 4.43%), and the S&P down 84.59 points. Total NYSE volume traded, 4.60 billion shares. Declining shares outpaced Advancing shares nearly 3:5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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