Monday's Market Recap - Dow Down 600+ Points On Fear Of Weakening Global Growth
What is The Premarket Telling Us?
7:00 PM.
US stock futures are lower this morning on this Veterans Day iteration of the markets. Dow futures are lower by 37 points, Nasdaq futures up 7 points, and S&P down 1.25 points. Overnight, Asian stocks closed modestly higher, including China, where Alibaba Singles Day broke another records this year, by selling $31 Billion, compared to $25 Billion in 2017.
On The Bond Desk:
The US 10 Year Bond Yield at 3.19%, down 0.04%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $60.62/barrel, up 0.71%.
On the Earnings Calendar:
None
In M&A News:
SAP announced today, that it is buying survey company Qualtrics in a cash deal for $8 Billion.
What About The Asian And European Markets?
Major Asian markets closed with gains overnight . Japan (Nikkei 225) up 0.09%, Shanghai rose1.22%, Hong Kong (Hang Seng) down up 0.12%.
Major European markets were down in today's session. German (DAX) down 1.77%, France CAC 40 lost 0.93%, London FTSE 100 down 0.74%.
Market Direction And & Sector Dynamics
Markets opened the trading day moderately lower. The Dow lost 79 points, and the Nasdaq fell 51 points, and the S&P 9.78 points. Stocks are under pressure as investors worry about the uncertainty of company valuations next year, in light of a perceived global slow down. Apple, and other big technology stocks, such as Facebook, Google, Netflix, are all lower. Financial shares including JPMorgan, Goldman Sachs are all also under pressure early. Even Alibaba, was under pressure today, despite racking up a record $31 billion in sales during its Singles Day holiday, over the weekend.
Adding further pressure to markets, were rumors that the Trump Administration is stepping up its fight with China on Intellectual Property. There is also talk of tariffs on foreign autos which would also be negative for US automakers.
Stock remained negative for the entire trading session, with stock closing at the low of the session. The selloff was broad based, and market tone was negative.
Nine of the eleven S&P sectors closed the session with losses. Technology (down 3.54%), consumer discretionary, energy, financials, industrials, basic materials, communication service, and healthcare, were the major laggards.
Factors Influencing Today's Market
Weakening global growth the main concern for markets in today's session.
SAP buying Qualtrics in a cash deal worth $8 billion shares.
Trump Administration is stepping up it war with China on Intellectual Property, and may be discussing tariffs on imported Autos.
Crude oil traded higher initially, after news that the OPEC was considering a production cut. but President Trump tweeted that he hoped the Saudi was not considering a production cut. WTI crude oil price closed at 58.84/barrel, down 3.18%.
Third Point - Dan Loeb's hedge fund has taken a huge position in American Express.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, the Dow sank 602.12 points, Nasdaq lost 206.03 points, and S&P fell 54.79 points. Total NYSE volume traded, a moderate 3.42 billion shares. Declining shares outpaced Advancing share 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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