Monday's Market Recap - Provincial Injunction Against Apple In China & Postponed Brexit Vote
What is The Premarket Telling Us?
7:00 AM.
US stock futures were very weak last night, with the Dow futures down more than 250 points. Fortunately for the bulls, the futures did improve coming into this morning premarket. At the present time Dow futures are down a mere 42 points, Nasdaq futures down 15 points, with S&P futures down 7 points. Brexit is also on the mind of investors, as Prime Minister May, was forced to postpone her vote in British Parliament, because she did not have the votes to approve her Brexit deal. This has led to another concern for markets.
On The Bond Desk:
The US 10 Year Bond Yield at 2.85% lower by 0.03% or three basis points.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.26 (falling on the cancellation of the Brexit vote in parliament for lack of support.
Crude Oil:
WTI crude oil futures at $51.73/barrel, down 1.67%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were decidedly lower overnight. Japan (Nikkei 225) sank 2.12%, Shanghai down 0.82%, Hong Kong (Hang Seng) 1.19%.
Major European markets were also solidly lower today. German (DAX) lost 1.54%, France CAC 40 down 1.47%, London FTSE 100 down 0.83%, as Prime Minister Theresa May cancels the Parliamentary vote on her Brexit plan, scheduled for tomorrow, because of lack of support.
Market And Sector Dynamics
Markets opened the trading day modestly positive today, with the Dow up 23 points, Nasdaq up 23 points, and the S&P added 2.60 points. The rally was short lived however as twenty minutes after the open stocks dipped lower, with the Dow down 220 points, due largely to a decline in the share of Apple, on news that a provincial court in China granted an injunction against Apple, in its protracted fight with Qualcomm. Also adding pressure on the Dow is FedX. Investors learned this morning that Bank of America has cut it recommendation of the stock, because the head of their Express Unit, David Cunningham has resigned, signalling that management may not be happy with the companies performance in the current holiday quarter.
Stocks took a leg lower, around 11:30 AM, when the Dow was off more than 500 points. Stocks recovered from the morning lows during the afternoon session, to closed modestly higher. Facebook led the markets yesterday, after the company announced an additional $9 Billion in stock buybacks, helping the technology sector to outperform in the session.
Eight of the eleven S&P sectors closed the session with modest gains, led by Technology, Communication Services, Healthcare, Basic Materials, and Industrials.
Factors Influencing Today's Market
Facebook announced a $9 Billion share buyback program.
British Prime Minister Theresa May postpones Parliamentary vote on her Brexit deal due to lack of votes.
A Provincial Court in China ruled in favor of an injunction against Apple, in its ongoing fight with Qualcomm.
Crude oil lost significant ground today. WTI crude oil closed at $51.00/barrel, down 3.06%.
Asian and European markets closed solidly lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At session end, the Dow gained 34.31 points, Nasdaq up $51.27 points, and the S&P rose 4.64 points. Total NYSE volume traded, a moderate 4.07 billion shares. Declining shares outpaced Advancing shares slightly better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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