Friday's Market Recap - Dow Sheds Another 400+ Points, As Bear Market Takes Hold.
What is The Premarket Telling Us?
7:00 AM.
This morning's market set up is mildly negative, which is surprisingly better than the current environment would predict. There is a imminent shutdown of the US government by midnight, US stock market is wallowing in bear market territory, and last evening the Secretary of Defense James Mattis, has resigned his position in protest against, the President. This is serious business.
Dow futures are currently down 68 points, Nasdaq fell 29 points, and the S&P down 10 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.79%, up one basis point.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $45.36/barrel, down 1.13%.
On the Earnings Calendar:
NIKE reported strong fiscal 2019 Second Quarter earnings.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed in their session. Japan (Nikkei 225) fell 1.11%, Shanghai lost 0.79%, Hong Kong (Hang Seng) gained 0.51%
Major European markets closed modestly higher. German (DAX) up 0.21%, France CAC 40 up 0.04%, London FTSE 100 added 0.14%.
Market And Sector Dynamics
Stocks opened the trading session mildly higher, but gained momentum a short while later. Half an hour after the open, the Dow surged 204.76 points, Nasdaq down 5.97 points, and the S&P up 13.90 points.
The Dow hit the high of the day, up more than 400 points, one hour after the open, on strong earnings from sneaker giant NIKE.
Unable to hold on to the morning highs, stocks began to decline in the latter half of the morning session, as threat of a government shutdown became more certain. The decline continued into the afternoon session, and intensified into the close.
The selloff was intense, broad based, and negative, with all the eleven S&P sectors closing the session with steep losses. Communications Services, Technology, Consumer Discrepancy, Financials, Industrials, Real Estate, and Healthcare, were the main laggards.
Factors Influencing Today's Market
The Secretary of Defense, Jim Mattis, resignation from the Cabinet in protest against the Presidents foreign policy.
Threat of a government shutdown in Washington weighed negatively on stocks today.
NIKE reported strong quarterly results, which sent shares of the company surging more than 7%.
Crude oil traded modestly lower today. WTI crude oil closed at $45.59/barrel, down 0.63%.
Asian markets ended mixed, while Europe was modestly lower.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's session, the Dow dropped 414.23 points, Nasdaq sank 195.41 points, and the S&P lost 50.80 points. Total NYSE volume traded, a heavy 7.19 billion shares. Declining shares outpaced Advancing shares by 3.5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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