Friday's Market Recap - Dow Down 500+ As China Truce In Doubt With Arrest Of Hauwei CFO In Canad
What is The Premarket Telling Us?
7:00 AM.
Stock Index futures are all negative at this point in the premarket session. Dow futures are down 130 points, Nasdaq futures down 42 points, and S&P futures down 15 points. In this mornings setup investors are awaiting a decision from OPEC and Non OPEC oil producers on how much they will reduce crude oil production.
On The Bond Desk:
The US 10 Year Bond Yield sits at 2.88%, down 0.04% or 4 basis points.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.27
Crude Oil:
WTI crude oil futures $51.79/barrel, up 0.58%.
On the Earnings Calendar:
None
In M&A News:
Parent of Philip Morris, Altria, is buying a $2 billion stake in marijuana company, Cronos.
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) up 0.82%%, Shanghai up 0.03%, Hong Kong (Hang Seng) down 0.35%.
Major European markets closed with gains. German (DAX) up 0.06%, France CAC 40 gained 0.68%, London FTSE 100 rose 1.10%.
Market And Sector Dynamics
Stocks opened the trading day modestly lower, with the Dow down 29 points, Nasdaq down 25 points, and S&P fell 4 points. Crude oil prices are on the rise early, as OPEC and Non-OPEC producers announced a 1.2 million barrels/day cut in crude production. WTI crude oil is at $53.68/barrel, up 4.22%, on the news.
Markets turned positive half an hour after the open, as investors cheered the slightly less than expected 155,000 jobs created for November. The thinking is, this number could cause the Fed to back off of any increase the pace of interest rate hikes.
On hour after open the markets turned negative, as investors turned their focus back to US China escalating trade problems, suggested by the arrest of Chief Financial Officer, of Hauwei, in Canada two days ago. Clearly, this action does not indicated a truce between the US and China, as was stated by the our President after his meeting with President Xi on the side of the G 20 last week.
Stock descended lower throughout the session, as investor grew more negative, about falling global growth, and rising interest rates.
At the low of the day late in the afternoon session, the Dow was down more than 650 points, before pull off the low into the close.
Today's selloff was broad based, and negative. Ten of the eleven S&P sectors closed the session with solid losses, led down by Technology, Consumer Discretionary, Industrials, Basic Materials, Healthcare, Communication Services, Financials, Real Estate, and Consumer Staples.
Factors Influencing Today's Market
November Employment Situation reports 155,000 new jobs created, versus the 190,000 estimated, with the unemployment rate holding at 3.7%.
The arrest of Hauwei's CFO throws a new wrinkle into trade negotiations with China, removing any hope of a trade truce.
OPEC and Non-OPEC Oil producers agree to cut crude oil production by 1,200,000 million barrels, per day.
Crude oil prices rose in today's session. WTI crude oil closed at $52.61/barrel, up 2.18%.
This week's Baker Hughes Oil Rig count fell 10 rigs to 877.
Market Close Volume Traded And Advance Decline Ratio
Another day of significant losses for the markets. The Dow sank 558.72 points, Nasdaq lost 219.01 points, and the S&P down 62.87 points. Total NYSE volume traded, a moderate 4.14 billion shares. Declining shares outpaced Advancing shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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