Monday's Market Recap - Dow Sank Nearly 400 Points As Negative Market Sentiment Takes Hold.
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are modestly negative at this hour, pointing to a lower market open. Dow futures down 55 points, Nasdaq futures down 16 points, and S&P futures down 7 points.
November Housing Market Index fell precipitously by 8 points to 60 vs 68.
On The Bond Desk:
The US 10 Year Bond Yield ticked down to 3.07%, down 0.05%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $56.81/barrel, up 0.23%.
On the Earnings Calendar:
L Brand, Urban Outfitters, and Intuit, report earnings after the close of trading today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed higher to begin the new week of trading. Japan (Nikkei 225) gained 0.65%, Shanghai rose 0.91%, Hong Kong (Hang Seng) climbed 0.72%.
Major European markets were down in today's session, thanks to ongoing concerns around British Brexit negotiations. German (DAX) down 0.85%, France CAC 40 fell 0.79%, London FTSE 100 lost 0.19%.
Market Direction And & Sector Dynamics
Stock opened moderately negative today, with the Dow falling 65 points, Nasdaq down 31 points, and the S&P down 7 points. Weaker than expected housing data, as October Housing Starts, came in lower than expected. Big technology stocks, such as Facebook, Apple are weighing heavily on markets.
Stocks trended lower from the open and remained in negative for the entire trading session, as investor fears mounted over a slow down in global growth, US China trade war, and weaker than expected corporate earnings from for some US companies. All eleven S&P sectors traded with losses early in the session. Shares of Facebook, Apple, and General Electric, continue to weigh heavily on the markets throughout the day's session. In recent days another item has been added to the wall of worry, and that is corporate credit, as some investors begin to highlight a steady build up of debt on corporate balance sheets.
At the low of the session, the Dow sank more than 500 points around 2:00 PM. Stocks bounced modestly off those lows into the close.
The selloff was broad based but orderly, with nine of the eleven S&P sectors closing lower, led by Technology, Consumer Discretionary, Communication Services, Industrials, Basic Materials, and Healthcare. Real Estate, and Utilities closed higher.
Factors Influencing Today's Market
Weaker than expected Housing Starts was a negative for housing stocks today.
Crude oil finished modestly up in the session. WTI crude oil closed at $56.76/barrel, up 0.53%.
Major Asian markets were all higher, while European stocks fell, on Brexit concerns.
The US 10 year bond yield closed the day at $3.06%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets were all significantly lower, with the Dow down 395.78 points, Nasdaq fell 219.40 points, and S&P gave up 45.54 points. Total NYSE volume traded, a modest 3.78 billion shares. Declining shares outpaced Advancing shares nearly 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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