Friday's Market Recap - Disappointing Quarterly Earnings From Apple Topple Markets.
What is The Premarket Telling Us?
7:00 PM.
US stock futures are higher fifteen minutes before the market open. Dow futures up 0.87%, Nasdaq futures down 0.24%, and S&P futures up 0.59%. Investors may be pinning theirs hopes better relations with China on trade, as well as a better than expected unemployment report, which showed 250,000 new jobs were created in October, the unemployment rate held at 3.7%, and average hourly earnings rose 3.1%. The increase in hourly earnings pretty much confirms, the Fed will hike again in December.
On The Bond Desk:
The US 10 Year Bond Yield at 3.14%, down 0.02%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $63.69/barrel, down 5.77%.
On the Earnings Calendar:
Strong quarterly earnings from Exxon.
Strong quarterly earnings from Starbucks.
Alibaba reported better than expected earnings result. The company beat earning estimates, and revenues, but guided lower as US and China trade issues continues.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed with gains. Japan (Nikkei 225) up 2.56%, Shanghai up 2.70%, Hong Kong (Hang Seng) up 4.21%.
Major European markets were up in today's session. German (DAX) up 0.44%, France CAC 40 up 0.32%, London FTSE 100 down 0.29%.
Market Direction And & Sector Dynamics
Stocks opened the trading day solidly higher. The Dow rose 147 points, Nasdaq fell 18 points, and the S&P added 7 points. A strong jobs number, and better than expect quarterly earnings performance from Starbucks, and Exxon, and Alibaba are helping stocks to push higher. Apple is a drag on the markets early, as earning disappointed investors. The company handily beat earning, revenue was just shy of expectations, but most importantly sales of iPhone units were lower than the street expected.
Stocks turned negative around 10:30 AM, as negative sentiment about Apple dominated the session, and conflicting accounts from the Administration of a potential break through between President Trump and President Xi, in Argentina later this month.
Markets remained below the flat line for the rest of the session. The selloff was broad based, with nine of the eleven S&P sectors closing with losses, led by technology, real estate, communication services, healthcare, utilities, basic materials, and industrials.
Factors Influencing Today's Market
Shares of Apple weighed negatively on markets in today's session
Better than expected quarterly earnings from Starbucks and Exxon was a positive catalyst.
A strong 250,000 October employment number, with the unemployment number holding a 3.7%.
Average hourly earnings rose 3.1%, making a Fed rate hike in December, almost a certainty.
Crude oil fell moderately in the session. WTI crude oil closed at $63.11/barrel, down 0.86%.
This week's Baker Hughes Oil Rig count rose 1 rig to 874 total.
Conflicting information from the Administration about President Trump and President Xi in Argentina.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading markets were lower. The Dow lost 109.91 points, Nasdaq fell 77.06 points, and S&P lost 17.31 points. Total NYSE volume traded, 4.12 billion shares. Declining shares outpaced Advancing shares by 1.32:1
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments