Friday's Market Recap - Weak German Manufacturing Data Send Global Markets Lower.
What is The Premarket Telling Us?
7:00 AM.
Moderately negative describes the US stock futures at this hour. Dow futures down 111 points, Nasdaq futures down 28 points, and S&P down 12 points. Asian market recorded modest gains overnight. Weak German manufacturing PMI is weighing on global markets.
On The Bond Desk:
The US 10 Year Bond Yield at 2.54%, unchanged.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $59.47/barrel, down 0.85%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets slightly higher overnight. Japan (Nikkei 225) up 0.09%, Shanghai up 0.09%, Hong Kong (Hang Seng) up 0.14%.
Major European markets closed with losses. German (DAX) fell 1.61%, France CAC 40 down 2.02%, London FTSE 100 2.01%.
Market And Sector Dynamics
Stocks opened the trading day under pressure from poor German PMI manufacturing data, and here at home. The Dow sank 125 points, Nasdaq fell 39 points, and the S&P fell 13 points. With investors already worried about slowing global economic growth, falling bond yields after the Fed dovish stance on Wednesday, and Nike earnings outlook that disappointed, is a cause for concern.
Crude oil which has moved solidly higher over the last few days, seem to be taking a breather today, currently at $59.23/barrel, down 1.22%, early in the session.
Adding fueling fear this morning, the yields on the US 10 year bond, and 3 month treasure has inverted, and this caused the markets to gap lower.
By 11:00 AM the Dow had lost 300 points, as the wave of selling continued. Two hours later the Dow hit another low, down 450 points. Market did stage a slight recovery around 3:00 PM, the markets sold off again, this time, ending the day at the low of the session.
The selloff was broad based, and market tone was negative. Ten of the eleven S&P sectors closed with solid losses, led by Basic Materials, Financials, Energy, Technology, Industrials, Consumer Discretionary, Healthcare, and Communication Services. Utilities was the only sector that closed higher.
Factors Influencing Today's Market
A surprisingly weak German Manufacturing Purchasing Managers Index report weighed heavily on markets today, confirms global economic weakness.
Boeing's problems continued to pressure markets.
Nike beats quarterly earnings estimates, but guidance slightly disappointed investors, and shares fell.
US manufacturing report (PMI) also came in weaker than expected at 54.30 points, a nearly two year low.
February Existing Home Sales rose a surprising 11.8% to 5.510 million annualized rate.
Crude oil lost some ground today. WTI crude oil closed at $59.04/barrel, down 1.57%.
This week's Baker Hughes Oil Rig count fell 9 rigs to 824 total.
Market Close Volume Traded And Advance Decline Ratio
When stock ended trading for the day, all the indices were lower, the Dow dived 460.19 points, Nasdaq dived 196.29 points, and the S&P fell 54.17 points. Total NYSE volume traded, 4.20 billion shares. Declining share outpaced Advancing shares better than 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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