Thursday's Market Recap - A Negative Session Due To Weakened Global Growth, Mixed Earning, And U
What is The Premarket Telling Us?
7:00 AM.
US stock futures moderately lower in the premaket, suggesting a negative open. Dow futures down 144 points, Nasdaq futures down 42 points, and S&P futures off by 16 points. Weaker than expected economic data, and lower growth expectations in Europe, is moving global markets lower.
On The Bond Desk:
The US 10 Year Bond Yield 2.70%, unchanged.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $53.64/barrel, down 0.69%.
On the Earnings Calendar:
Twitter beat 4Qtr. Earnings and Revenue expectation, but guided lower than analyst estimates. The company will also cease reporting Monthly Active Users (MAU), preferring to use Daily Active Users, instead.
In M&A News:
A big merger in the banking business. BB&T bank is buying Suntrust, in a merger of equals stock deal worth $28 Billion. This will become the sixth largest bank.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) off 0.59%, Shanghai %, Hong Kong (Hang Seng) % - closed for the Lunar New Year.
Major European markets down on weaker economic data and slowing growth outlook. German (DAX) fell 2.67%, France CAC 40 down 1.84%, London FTSE 100 down 1.11%.
Market And Sector Dynamics
Stocks opened the trading day solidly lower. The Dow sank 165 points, Nasdaq fell 66 points, and the S&P lost 18 points. Weak European production data, and a lowering of economics growth targets, in the ECB, and the Bank of England, has spooked markets.
Adding fuel to the fire, a resolution of the US China trade problems, does not seem imminent. Investors learned that the President Trump and China's President Xi was unlikely to meet, before the March 1st deadline when additional tariffs, are triggered into effect on Chinese good.
Not even a giant merger of equals, between BB&T and Suntrust banks worth $66 Billion, seems to be helping market sentiment. Shares of both companies traded higher in the session, suggesting the markets like the deal.
Market declined for most of the morning session, with the Dow down more than 390 points around noon time. Stock did regain some of those earlier losses during the afternoon session, and into the close.
All but two of the eleven S&P sectors, closed the day with solid losses, led by Energy, Technology, Basic Materials, Healthcare, Communication Services, Financials, Consumer Discretionary, and Industrials. Utilities, and Real Estate were higher.
Factors Influencing Today's Market
BB&T buying Suntrust Bank in a merger of equals deal worth $66 Billion, to become the sixth largest US bank.
President Trump and President Xi of China are unlikely to meet before the March 1st deadline, when new tariffs will go into effect.
Twitter beats 4Qtr. Earning and Revenue, but decides to stop reporting Monthly Average Users. (MAUs).
European markets closed decidedly lower in today's sessions.
Crude oil traded lower today. WTI crude oil price closed at $52.64/barrel, down 2.54%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the major indices were lower. The Dow lost 220.77 points, Nasdaq fell 86.93 points, and the S&P down 25.56 points. Total NYSE volume traded, a light 4.03 billion shares. Declining shared outpaced Advancing shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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