Monday's Market Recap - Another 500+ Dow Day Deep In Bear Market Territory.
What is The Premarket Telling Us?
7:00 AM.
In this morning's market setup, US stock index futures are modestly lower. Dow futures down 32 points, Nasdaq futures down 5 points, and S&P futures down 3 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.89%. down .02% or two basis points.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $51.55/barrel, up 0.68%
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) up 0.62%, Shanghai up 0.2%, Hong Kong (Hang Seng) up 0.06%
Major European markets were all lower. German (DAX) down 0.86%, France CAC 40 lost 1.11%, London FTSE 100 fell 1.05%
Market And Sector Dynamics
Stocks opened today's trading session depressingly lower, with the Dow down 148 points, Nasdaq down 29 points, and the S&P down 12 points. Both the Dow and the S&P are now in Bear Market territory, more than 20% below their recent highs. At the low of the morning session, the Dow was down 315 points.
Markets regained some of the morning losses, as the beaten down financials, and industrials stock stage a rally. by noon markets had reclaims most of the morning losses, and moved back close to the flatline. Unfortunately, the rally faded just after midday, and everything went south from there, as became obsessed with the thought of rising interest rates, and a slowdown in global growth.
A recent ruling by a judge in Texas that the ACA (Obamacare) is unconstitutional, because the Individual Mandate was stripped away by the Congress, is a negative for shares of health insurance companies. Johnson & Johnson is also under pressure again today, after a report by Reuters on Friday, suggesting the company knew about asbestos in Talc the company products from year ago.
Today's selloff was broad based, and market sentiment was very negative, but orderly. All eleven S&P sectors close the day with losses, led by Real Estate, Utilities, Consumer Discretionary, Consumer Staples, Technology, Healthcare, Communication Services, Basic Materials, and Energy.
Factors Influencing Today's Market
Reuters report asbestos in Johnson & Johnson Talc, a negative for markets again today.
Texas Judge rules ACA is unconstitutional, also negative for healthcare stocks
Fed/FOMC meeting begins tomorrow. A quarter point hike is expected, but investors are still nervous.
Crude oil traded moderately lower today. WTI crude oil close at $49.88/barrel, down 2.58%.
Major Asian markets closed with gains. European markets closed lower.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets were all negative. The Dow lost 507.53 points, Nasdaq 156.93 points, and the S&P fell 54.01 points. Total NYSE volume traded, moderate 4.55 billion shares. Declining shares outpaced Advancing shares better than 6:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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