Thursday's Market Recap - Mixed Session On Strong Airline Earnings, And A Great Initial Jobless
What is The Premarket Telling Us?
7:30 AM.
US stock futures are slightly positive at this hour, with Dow futures up 30 points, Nasdaq futures up 33 points, and S&P futures up 5 points. ECB President Draghi, left interest rates an unchanged levels, and could forego any interest rate hikes in 2020, as indicated by markets. Then there is geopolitical risk, like Brexit, slowing global economy, and the US China trade talks.
Commerce Secretary, Wilbur Ross in comments this morning suggested that negotiations with China were "miles and miles away from a trade agreement. In a separate comment he also expressed his disappointment that the furloughed Federal worker were going to shelters and food banks for food. He says they could go to their bank and get a loan. As can be expected, that did not go over well, on Twitter, or the twenty four hour news cycle.
On The Bond Desk:
The US 10 Year Bond Yield at 2.76%, up 0.03% or three basis points.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $52.17/barrel, down 0.56%.
On the Earnings Calendar:
Strong earnings from Jetblue, American Airlines, Southwest Airlines, reported better than expected earnings this morning.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets slightly higher. Japan (Nikkei 225) down 0.09%, Shanghai up 0.41%, Hong Kong (Hang Seng) up 0.42%
Major European markets were mixed. German (DAX ) up 0.53%, France CAC 40 up 0.65%, London FTSE 100 down 0.35%
Market And Sector Dynamics
Stock opened the trading session modestly down. The Dow fell 20 points, Nasdaq rose 10 points, and the S&P down 1 point. WTI crude oil was flat in the early session, up 0.20%, at $52.72/barrel.
Markets got some positive news from ECB President Mario Draghi. That central bank left interest rates unchanged, and indicated that there may be holding off on rate hikes for now, due to weakness in Eurozone.
Strong quarterly earning from Jetblue, American Airlines, particularly Southwest Airlines helped markets, along with strong performance from semiconductor companies.
Today's session was volatile, but orderly, with eight of the eleven S&P sectors closing with moderate gains, led by Technology, Energy, Consumer Discretionary, Industrials, Utilities, Real Estate, and Financials. Consumer Staples, Healthcare, and Industrials, were the laggard.
Factors Influencing Today's Market
Strong quarterly earnings reports from Jetblue, American Airlines, and Southwest Airlines.
European Central Bank President, Mario Draghi, leaves interest rates unchanged, and signaled no interest rate hikes in the near future.
Geopolitical issues remain, Brexit continues, US government shutdown is ongoing, China trade issues still unresolved.
Both Asian and European markets mixed in their sessions.
This week's EIA Petroleum Status Report showed crude oil inventories rose 8 million barrels to 445 million barrels.
Crude oil traded moderately higher today. WTI crude oil closed at $53.13/barrel, up 0.97%.
This week's Initial Jobless Claims, fell 13,000 claims to 199,000 claims, the lowest read in 50 years.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets were mixed. The Dow lost 22.38 points, Nasdaq gained 47.69 points, and the S&P added 3.63 points. Total NYSE volume traded, a modest 3.37 billion shares. Advancing shares outpaced Declining shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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