Wednesday's Market Recap - Stocks Took A Breather Today Amidst Mixed Corporate Earnings Picture.
What is The Premarket Telling Us?
7:30 AM.
US stock futures are mostly flat in this morning's market setup. Dow futures are down 8 points, Nasdaq futures up 7 points, and S&P futures down less than a point, at 0.75. Asia remains mostly closed for the Lunar New Year.
On The Bond Desk:
The US 10 Year Bond Yield at 2.70%, down 0.02%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $53.57/barrel, down 0.17%.
On the Earnings Calendar:
GM reported solid 4th. Qtr. Earnings results before the bell this morning, handily beating earnings and revenue estimates.
Drug maker Eli Lilly missed Q4 earnings estimates, beat revenues, but lowered guidance.
Spotify reported better than expected quarterly results this morning. The company is also buying two podcast services, Gimlet, and Anchor, for $500 million dollars.
In M&A News:
Spotify buying Gimlet, and Anchor for $500 million.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up 0.14%, Shanghai %, Hong Kong (Hang Seng) % - Closed for Lunar New Year.
Major European markets traded lower today. German (DAX) lost 0.31%, France CAC 40 down 0.06%, London FTSE 100 down 0.06%.
Market And Sector Dynamics
Stocks opened the trading day slightly lower. The Dow fell 46 points, Nasdaq up 4 points, S&P fell 3 points. Crude oil started the session modestly lower, with WTI crude at $53.32/barrel, down 0.61%.
Markets were dealing with a mixed earnings results. Electronics Arts, Eli Lilly, disappointing investors, while General Motors, and Spotify exceeding analyst earning and revenue estimates. After five consecutive up days, markets may be taking a breather.
Market sank even lower after the open, with the Dow down 76 points, Nasdaq down 19 points, S&P down 8 points half an hour after the open. There is some indication that the market may be overbought, especially if you are in the camp that thinks earnings expectations for 2019, will be zero.
Eight of the eleven S&P sectors closed lower today. Communication Service, Energy, Real Estate, Basic Materials, Consumer Discretionary, and Financials, were the lagging sectors. Healthcare and Technology had modest gains.
Factors Influencing Today's Market
A mixed corporate earnings picture failed to excite investors.
Spotify announced $500 million deal to buy Podcasts, Gimlet, and Anchor.
EIA Petroleum Status report show US crude oil inventories rose 1.3 million barrels, to 447.2 million barrels.
Crude oil traded lower, early in the session but recovered. WTI crude oil closed at $54.1/barrel, up 0.65%.
European markets traded lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed the Dow was down 21.22 points, Nasdaq fell 26.80 points, and S&P down 6.09 points. Total NYSE volume traded, a light 3.42 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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