Wednesday's Market Recap - Dow In Near 500 Point Round Trip As Market Volatility Continues In 20
What is The Premarket Telling Us?
7:00 AM.
It is the first trading day of the new year, and the US stock market setup is looking really negative after weak production data coming out of China, and weaker than expected PMI data out of Europe. Dow futures are down 322 points, Nasdaq futures down 137 points, and the S&P down 36 points.
On The Bond Desk:
The US 10 Year Bond Yield 2.69%, down 0.05%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $45.00/barrel, down 1.63%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) fell 0.31%, Shanghai lost 1.15%, Hong Kong (Hang Seng) sank 2.77%.
Major European markets closed mixed to mostly lower. German (DAX) rose 0.20%, France CAC 40 down 0.87%, London FTSE 100 up 0.09%.
Market And Sector Dynamics
Stocks opened the first day of trading under severe downward pressure, with the Dow down 360 points, Nasdaq down 114 points, and the S&P fell 34 points. All 30 Dow component, and all eleven S&P sectors are all lower. Adding more pressure, crude oil prices are all down again this morning. WTI crude oil is currently, $44.59/barrel, down 1.8%.
Stocks sank even lower after the open, with the Dow reaching the low of the day, down 398 points minutes after the open. Markets turned around almost in a V shaped fashion, finally reaching, the high of the Day with the Dow up 80 points, just before 2:00 PM, an impressive almost 500 point turn around from the morning low.
Thanks to a turnaround in crude oil intraday, which helped to push energy and energy related stocks higher. Shares of technology stocks, like Amazon, Facebook, and others, were responsible for today's rally.
The sector leading today's rally were; Energy, Communication Services, Consumer Discretionary, Financials, Industrials, and Basic Materials. Real Estate, Utilities, and Healthcare were the major laggards.
Factors Influencing Today's Market
Stocks opened the first trading day of the year under severe pressure due to weak production data out of China overnight.
Crude oil stage a nice intraday recovery, after trading lower early in the session. WTI crude oil closed at $45.80/barrel, down 0.20%.
Asian and European markets were mostly lower in their sessions.
December PMI came in a 53.80 pointing to a cooling in manufacturing activity and optimism at year end.
The partial government shutdown continues, as the Democrats takes control of the House of Representatives tomorrow.
Market Close Volume Traded And Advance Decline Ratio
At the end of the trading session, the Dow gained 18.78 points, Nasdaq gained 30.66 points, and the S&P added 3.18 points. Total NYSE volume traded, modest 3.67 billion shares. Advancing shared outpaced Declining shares by 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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