Tuesday's Market Recap - Stocks Modestly Lower As Investors Look For New Catalyst.
What is The Premarket Telling Us?
6:30 AM.
US stock futures are slightly higher, ahead of the opening bell. Dow futures are up 32 points, Nasdaq up 8.25 points, and S&P up 3.50 points. Asian stocks were mixed, as China reduces its 2019 growth targets.
On The Bond Desk:
The US 10 Year Bond Yield at 2.72%, down 0.04%, or four basis points.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $56.57/barrel, down 0.44%.
On the Earnings Calendar:
Target handily beat analyst quarterly, earnings and sales estimates. Shares of the retailer are up in the premarket.
Salesforce reported better than expected quarterly results. but guidance was just short of expectation.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) fell 0.44%, Shanghai up 0.88%, Hong Kong (Hang Seng) up 0.01%
Major European markets closed higher. German (DAX) rose 0.24%, France CAC 40 up 0.21%, London FTSE 100 added 0.69%.
Market And Sector Dynamics
Stocks opened the trading day with mild losses. The Dow fell 18 points, Nasdaq down 3 points, and the S&P lost 2 points. Investors are responding to a report overnight, where China cut its 2019 growth target to 6.0 - 6.50%, from 6.6% in 2018..
Here at home, retailer, Target reported a strong quarter, beating analyst estimates, on earnings and sales, and other metrics.
Salesforce.com also beat earnings and revenue expectations, after the bell last evening, but current quarter guidance disappointed investors. Shares of Saleforce were higher early in the session, but turned negative intraday.
Increased optimism surrounding the possible signing of a trade deal between the US and China, by most accounts, have already been priced into markets, suggesting US China deal, is no longer the catalyst it was.
Fifteen minutes after the open, stocks sank even lower. The Dow down 60 points, Nasdaq down 18 points, and S&P down 6 points.
Stocks hung out at or near neutral, for the entire session, except for a few brief moment in positive territory, as investors seem to be looking for a new catalyst to push markets meaningfully higher.
Market tone was mostly negative, with eight of the eleven S&P sectors closing with modest losses, led by Industrials, Basic Materials, Financials, Energy, Technology, and Utilities. Communication Services, Real Estate, and Consumer Staples were moderately higher.
Factors Influencing Today's Market
Optimism surrounding a US China trade deal has become less of a catalyst for markets.
Target handily beat quarterly earnings, sales, and other metrics.
Salesforce.com also beat earnings and revenue, but current quarter guidance was softer than expected.
China lowered its 2019 growth rate to 6.0% - 6.5%, overnight.
Crude oil was slightly lower today. WTI crude oil closed at $56.56/barrel, down 0.05%.
February ISM Non-Manufacturing Index came in a strong 59.7 vs 56.0 estimated. Confirming strong incoming demand.
February PMI Service Index came in strong at 56.0 vs 53.9. The best read since July 2018.
Market Close Volume Traded And Advance Decline Ratio
All the major indices were mildly lower at the end of today's trading. The Dow fell 13.02 points, Nasdaq lost 1.21 point, and the S&P was off 3.16 points. Total NYSE volume traded, a modest 3.55 billions shares. Declining shares outpaced Advancing shares by 1.10:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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