Monday's Market Recap - Dow Intraday Up 300, Down 600 Points, Before Closing Off Lows Of Day
What is The Premarket Telling Us?
8:00 AM.
Another busy week of earnings reports is on tap. Last week we saw Amazon, and Google disappoint investors, and suffered the consequences. Investors are looking forward to reports from Apple and Facebook this week. US stock futures are all green at this time. Dow futures were up 205 points, Nasdaq futures up 109 points, and S&P futures up 30 points.
On The Bond Desk:
The US 10 Year Bond Yield 3.11%, up 0.02%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $67.30/barrel, down 0.41%.
On the Earnings Calendar:
.Consumer staple company, Mondelez reports earnings after the bell this evening.
In M&A News:
IBM announced yesterday, that it is buying Red Hat in a cash deal worth $33 Billion, or $190/share. IBM will pause all its share buyback programs as a result.
What About The Asian And European Markets?
Major Asian markets were mostly lower overnight . Japan (Nikkei 225) lost 0.16%, Shanghai fell 2.18%, Hong Kong (Hang Seng) added 0.38%.
Major European markets were higher today's session. German (DAX) up 1.20%, France CAC 40 up 0.44%, London FTSE 100 gained 1.25%.
Market Direction And & Sector Dynamics
Stocks were up big at the open. The Dow up 230 points, Nasdaq up 100 points, and S&P up 33 points, as technology industrials, and financials moved higher. As investors believe markets may be oversold after last week's selloff. IBM mega deal announced on Sunday, could also be a positive for stocks today. The company is buying Red Hat in a cash deal worth $33 Billion, or $190/share. Shares of IBM are lower, but shares of Red Hat are up nearly 25%.
This morning's rally was broad-based, with 7:1 positives to negatives. At the peak of the morning session the Dow was above 300 points.
Unfortunately for the hopeful Bulls, the markets began to fade later in the morning session, as news out of Europe suggested some officials were contemplating levying a revenue based tax aimed at US Social Media companies, such as Facebook, Twitter, Snap, and others. Technology and industral stocks began to fade, as investors saw this is one more risk, added to the seemingly insurmountable wall of worry that already exists. There is worry about the Fed interest rate hikes, trade war with China, peak earnings, global economic slowdown and fear of recession, and perhaps a weaken Angela Merkel, in Germany.
Stocks continued to drift lower for the rest of the trading session, which saw the Dow down more that 600 points shortly before the closed, a 900 point swing for the day. Stocks bounced off just before the close recovering some of those losses.
Six of the eleven S&P sectors closed the session with losses, led by energy, technology, industrials, communications services, and consumer discretionary. Real estate, utilities, consumer staples, and financial were higher in the session.
Factors Influencing Today's Market
IBM buying Red Hat for $33 Billion, or $190/share in a cash deal.
Crude oil traded modestly lower in today's trading. WTI crude oil closed at $67.04/barrel, down 0.81%.
Technology and Industrials, faded halfway through the session, on suggestion of a European tax on Social Media companies.
The US 10 year bond yield moderates, while the US $ strengthens against Euro and British Pound.
Asian stock were lower, with China (Shanghai down more than 2%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets were decidedly lower. The Dow lost 245.39 points, Nasdaq gave up 116.92 points, and the S&P fell 17.44 points. Total NYSE volume traded, a moderate 4.62 billion shares. Declining shares outpaced Advancing shares by 1.35:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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