Monday's Market Recap - Dow Down 600+ Point In Worst Christmas Eve Decline, Ever.
What is The Premarket Telling Us?
7:00 AM.
From our altitude at 38,000 feet, on a flight up to NYC, US stock futures are modestly positive on this Christmas Eve iteration of the market. All three indices are mostly up early in the premarket, but deteriorated as the morning has progressed. Markets will close at 1:00 PM, ahead of the celebration of Christmas, tomorrow.
On The Bond Desk:
The US 10 Year Bond Yield 2.78/barrel.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures 45.53/barrel, down 0.63%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were all lower ahead of our opening. Japan (Nikkei 225) down 5.01%, Shanghai down 0.88%, Hong Kong (Hang Seng) down 0.40%.
Major European markets also fell today. German (DAX) lost 0.21%, France CAC 40 down 1.45%, London FTSE 100 fell 0.52%.
Market And Sector Dynamics
Markets opened moderately lower, with the Dow shedding 136.81 points, Nasdaq lost 31.72 points, and the S&P was down 10.83 points. Concern about a government shutdown, stock market selloff, tariffs, and news than Treasury Secretary, Munchin met with major US banks about liquidity in the banking system, are all weighing heavily on the market. Investors did not like Mnuchin meeting, since there has been no perception or evidence that there was a liquidity problem. Last week's resignation of the Defense Secretary,
Mattis, also hit a raw nerve with investors, and the wider community.
Markets traded in negative territory for the entire session, gaping lower, midway through the session, as investors digested the implications of the Secretary Mnuchin news, and decided to take some chips of the table, ahead of the Christmas Holiday tomorrow.
Today's selloff was deep and broad based, led by Utilities, Energy, Real Estate, Industrials, Consumer Staples, Technology, and Basic Materials.
Factors Influencing Today's Market
Report that Treasury Secretary, Steven Mnuchin had discussions with major banks to ensure adequate liquidity level, surprising the markets, and investors.
Crude oil declined drastically in today's session. WTI crude closed at $42.53/barrel, down 6.71%.
Investors are concerned that the Fed is not sensitive enough to signals from the market.
Talk of a recession has gripped markets, as stocks continue to selloff, amid trade war worries, government shutdown, and declining crude prices.
Asian and European stocks also traded lower today.
Market Close Volume Traded And Advance Decline Ratio
At the end of the shortened holiday trading session the Dow sank 653.17 points, Nasdaq sank 140.08 points, and the S&P fell 65.52 points. All the major indices are now in bear market territory. Total NYSE volume traded, a light half day 2.58 billion shares. Declining shares outpaced Advancing shares nearly 4:1. Today marks the biggest Christmas Eve decline ever.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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