Tuesday's Market Recap - Dow Down 550+ Points In Another Broad Based Selloff.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are a sea of red again this morning. The setup this morning is ugly, and could get uglier into the opening bell. At this hour Dow futures down 127 points, Nasdaq futures down 64 points, and S&P down 15 points.
On The Bond Desk:
The US 10 Year Bond Yield at 3.06%, down 0.01%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $57.19/barrel, down 0.02%.
On the Earnings Calendar:
Target reported weaker than expected Q3 Earnings, as it invests heavily to compete online. Shares of Target are lower.
Lowe's reported a disappointing quarter, and shares are down.
Ross stores also reported disappointing financial results, and is trading down.
Kohl's beat Q3 Earnings results but the stock is also trading lower with all the other retailers.
Best Buy beats Q3 earnings and revenue estimates, and shares of the electronic retailer is trading higher.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets lost ground in their session . Japan (Nikkei 225) fell 1.09%, Shanghai lost 2.13%, Hong Kong (Hang Seng) down 2.02%.
Major European markets were also down today's session. German (DAX) down 1.58%, France CAC 40 fell 1.21%, London FTSE 100 down 0.76%.
Market Direction And & Sector Dynamics
US stocks fell hard at the open. The Dow down 400 points, Nasdaq fell 155 points, and S&P fell 39 point. Disappointing earnings results from Target, Lowe's, as well as, Kohl's which did beat expectations, but is also down in sympathy with the others. Both the Dow and the S&P are close to wiping out all the gains for this year.
Markets remained consistently lower for the entire trading session. At the low of the session the Dow fell more than 600 points, as investors appear to be repricing stocks, for lower earnings expected from US corporations.
The selloff was across the board, as investors disappointed with the earnings from Target, Lowe's, and even Kohl's (which did beat expectation) punished everything retail related, and beyond.
In fact, no sector was spared today, all eleven of the S&P sectors closed with solid losses. Energy, Consumer Discretionary, Technology, Industrials, Financials, Basic Materials, Consumer Staples, Real Estate, and Communication Services.
Factors Influencing Today's Market
Weaker than expect earning from key retailers like Target, Lowe's, and to some extent Kohl's was a drag on stocks today.
Market appear to be repricing stocks for lower earnings expected from US corporations for year 2019.
US China Tariffs, and the Fed rate hike worries are still the two main concerns weighing on markets.
Crude oil fell hard in today's trading. WTI crude oil closed at $53.43/barrel, down 5.87%.
Both Asian and European markets were lower in their sessions.
The US 10 Year Bond Yield closed at 3.06%, down one basis point.
Market Close Volume Traded And Advance Decline Ratio
The bears were fully in charge of the markets today. At the end of trading the Dow tanked 551.80 points, Nasdaq sank 119.65 points, and S&P fell 48.84 points. All three indices have erased all of their 2018 gains Total NYSE volume traded, a moderate 4.29 billion shares. Declining shares outpaced Advancing shares better than 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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