Monday's Market Recap - Stocks Down On An Earnings Miss From Citigroup Inc. An Weak China Export
What is The Premarket Telling Us?
7:00 AM.
If you are taking your cues from the futures this morning, markets will be negative at the opening of trading. Dow futures are currently down 205 points, Nasdaq futures down 75 points, and S&P futures down 23 points. Reports coming out of China overnight show China Export plunged, to levels not seen in the last two years.
California utility provider PG&E will file for Chapter 11 Bankruptcy Protection, as potential liabilities mount, resulting from
On The Bond Desk:
The US 10 Year Bond Yield at 2.70%, down 0.03%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $51.00/barrel, down 1.14%
On the Earnings Calendar:
CitiGroup reported 4th. Qtr Results this morning. The company beat earnings expectation, but revenues were just shy of expectations. Still a solid quarterly performance.
In M&A News:
Huge deal in the gold mining industry. Newmont Mining is buying Goldcorp in a $10 Billion deal.
What About The Asian And European Markets?
Major Asian markets were mixed today. Japan (Nikkei 225) up 0.97%, Shanghai down 0.71%, Hong Kong (Hang Seng) down 1.38%.
Major European markets trade lower today. German (DAX) down 0.29%, France CAC 40 fell 0.39%, London FTSE 100 down 0.91%.
Market And Sector Dynamics
Markets opened decidedly lower, with the Dow down 170 points, Nasdaq down 64 points, and S&P down 20 points. Weak export data in China, which saw another Apple supplier taking reporting disappointing production numbers. Crude oil is also trading lower, early, with WTI crude oil at $51.12/barrel, down 0.89%.
Stocks hit the low of the day shortly after the open, with the Dow down 230 points, before staging a V shaped recovery, to reclaim most of those losses, although remaining in negative territory in the for the entire trading session.
With the start of 4th. Quarter Earnings season, investors are trying to gauge what corporate earnings growth for 2019 will look like. Hence the increase in volatility.
Today's market sentiment was negative, but orderly. Ten of the eleven S&P sectors closed the session with modest losses, led by Utilities, Healthcare, Technology, Basic Materials, Consumer Discretionary, Consumer Staples, Communication Services, and Real Estate.
Factors Influencing Today's Market
Solid Fourth Qtr. Earning report from CitiGroup. The company beat earnings but revenue was shy of expectation. Shares fell initially, but reversed course, to finish up more than 4%, at $58.93/shares.
PG&E, the California power utility company will file for Chapter 11 Bankruptcy Protection, due to potential liabilities from the California wild fires.
China exports plunged, the deepest fall in 2 years.
Asian market were mixed, while European stocks fell today.
Crude traded modestly lower today. WTI crude closed $50.69/barrel, down 2.22%.
Market Close Volume Traded And Advance Decline Ratio
At the close today, markets were moderately lower. The Dow fell 86.11 points, Nasdaq lost 65.56 points, and the S&P down 13.65 points. Total NYSE volume traded, a modest 3.62 billion shares. Declining shares outpaced Advancing shares almost 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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