Wednesday's Market Recap - Investors Got The Dovish Fed Report They Wanted, But Couldn't Han
What is The Premarket Telling Us?
7:00 AM.
US stock futures are flat or unchanged at this hour. Dow futures up 5 points, Nasdaq futures up 4.25 points, and S&P futures up 1 point. Asian markets were lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.61%, up 0.01%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $58.91/barrel, down 0.64%.
On the Earnings Calendar:
FedX reported quarterly earnings after the closing bell yesterday. The company missed analysts expectations, including guidance. Share of the company fell hard.
General Mill handily beat quarterly earnings, and revenue expectation, sending shares of the company higher.
In M&A News:
Disney has closed it deal for Twentieth Century Fox
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up 0.20%, Shanghai down 0.01%, Hong Kong (Hang Seng) down 0.49%.
Major European markets traded lower . German (DAX) fell 1.57%, France CAC 40 down 0.80%, London FTSE 100 down 0.45%
Market And Sector Dynamics
Stocks opened today's trading session modestly lower. The Dow fell 19 points, Nasdaq down 2 points, and the S&P lost 1 point.
A disappointing earnings report from FedX, which is seen as a good indicator of global economic conditions, is causing investors some concern. The company's CEO stated the his domestic business is fairly healthy, but slowing global weakness, abroad was a drag on performance.
On the other hand General Mills, reported strong quarterly results, this morning, and shares of the company are moving higher.
Stocks traded below the flat line for the entire morning session, with the Dow down more that 200 points, early in the afternoon session, ahead of the Fed's rate policy announcement due out at 2:00 PM.
Stock gaped higher after the Fed announced it will leave interest rates at existing levels, and in a surprise move suggested no further rate hikes for the rest of the year, and they expected to end balance sheet run off by September. Stocks turned positive during the 3:00 PM hour, before returning to negative territory before the close of trading.
Six of the eleven S&P sectors closed the day with losses, led by Financials, Healthcare, Industrials, Consumer Staples, and Technology. Consumer Staples, Energy, Real Estate, and Consumer Discretionary ended with gains.
Factors Influencing Today's Market
In a case of "be careful what you ask for" The Fed/FOMC announcement was so dovish yesterday investor sold the market, then worry about the implications.
The Disney Fox deal is now closed.
General Mills reported reported a surprisingly strong quarterly earnings. The company beat on all expectations, and increased guidance numbers.
FedX earnings disappointed investors, alluding to weakening global growth.
Crude oil recorded solid gains in trading today. WTI crude oil closed at $59.83/barrel, down 1.36%.
This week's EIA Petroleum Status report showed a drastic draw down of 9.6 million barrels to 459.3 million barrels, versus 3.9 million barrel draw down last week.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, all the major indices were mostly lower. The Dow sank 141.71 points, Nasdaq rose 5.02 points, and S&P lost 8.34 points, Total NYSE volume traded, a modest 3.71 billion shares. Declining shares Advancing shares by 1.24:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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