Thursday's Market Recap - Dow Down 660 Points, On Apple Pre Announcement, And Weak US Factory Or
What is The Premarket Telling Us?
7:00 AM.
Investors are looking at a very negative set up this morning. Dow futures down 365 points, Nasdaq down 168 points, S&P down 41 points. Asian markets were slightly lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.66%, down 0.03%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $46.43/barrel, down 0.24%.
On the Earnings Calendar:
None.
In M&A News:
Bristol Myers announced it is buying Celgene in a cash and stock deal worth $74.00/share.
What About The Asian And European Markets?
Major Asian markets were modestly lower. Japan (Nikkei 225) down 0.31%, Shanghai down 0.04%, Hong Kong (Hang Seng) down 0.26%.
Major European markets solidly lower. German (DAX) down 1.55%, France CAC 40 down 1.66%, London FTSE 100 down 0.62%.
Market And Sector Dynamics
Stock opened the second day of trading of the New Year under severe pressure. The Dow fell 209 points, Nasdaq lost 75 points, and the S&P down 19 points. Shares of Apple are the major negative this morning after the company in a surprise report last evening severely cut it sales target for iPhones, citing a slowing China economy, weakness in global sales, especially in China, due to tariffs issues. Early in the session, Apple is accounting for the loss of 100 Dow points.
Crude oil prices was also up early in the session, with WTI at $47.00/barrel, up 0.88%.
Adding more pressure to markets, was a much weaker than expected December ISM factory order data came in at 54.1 points, more than 5 points lower than the 59.3 points for November. Markets fell even further on this news. At 10:00 AM, the Dow was down 550 points, hitting the low Dow down 670 points, around 11:00 AM. Stock made a few attempts during the session to recovery some of the earlier losses, without success, and continued to decline, closing at the low of the session.
The selloff was broad based and deep, with nine of the eleven S&P sectors closing with solid losses, led by Technology, Healthcare, Consumer Discretionary, Consumer Services, and Energy. Real Estate was higher.
Factors Influencing Today's Market
Apple pre-announces surprisingly weaker than expected iPhone sales, due to slowing global sales, particularly in China.
Crude oil, up initially, turned mildly negative intraday. WTI crude oil closed at $46.91/barrel, up 0.80%.
December ISM factory order data fell more than 5 points to 54.1 vs 59.3 in November.
December ADP private payroll rose 271,000 jobs.
Initial Jobless Claims rose 10,000 to 231,000 claims.
US 10 Year Bond Yield closed lower today at 2.55%.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's session the Dow tanked 660.02 points, Nasdaq sank 202.43 points, and the S&P fell 62.14 points. Total NYSE volume traded, modest 3.78 billion shares. Declining shares outpaced Advancing shares by 1.5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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