Wednesday's Market Recap - Stock Sold Off Early, But Recovered In Afternoon Session.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are modestly negative at this hour. Dow futures down 62 points, Nasdaq futures down 3.75 points, and S&P futures down 3.75 points. Asian stocks closed mixed while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 2.41%, down one basis point.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $59.49/barrel, down 0.75%.
On the Earnings Calendar:
Lululemon (LULU) reports earnings after the close of trading this evening.
In M&A News:
LYFT IPO begin trading on the Nasdaq on Friday.
What About The Asian And European Markets?
Major Asian markets were mixed today. Japan (Nikkei 225) down 0.23%, Shanghai up 0.85%, Hong Kong (Hang Seng) up 0.56%
Major European markets was mostly unchanged. German (DAX) flat %, France CAC 40 down 0.12%, London FTSE 100 down 0.03%
Market And Sector Dynamics
The markets opened moderately positive. The Dow gained 88 points, Nasdaq rose 19 points, and the S&P rose 6 points. Stock were buoyed by a strong earnings report from homebuilder, KD Homes, sending shares of homebuilding companies higher. Shares of Apple is also contributing to this mornings rally. Beleaguered Boeing is also higher in the early going, as news of a software fix emerges.
Crude oil is trading slightly higher, and WTI crude oil at $60.13/barrel, up 0.33%, shortly after the open. Utilities is lagging early.
At the high of the morning the Dow was up 100 points, however, the rally began to fade midway through the morning session as bond yields turned lower, after the results of the German Bund (10 Year Bond) auction which went very well, but rate was negative for the first time since 2016. The Volatility Index (VIX) ticked higher intraday, pointing to increased volatility in the options market.
Two hours into trading, the Dow sank 190 points, Nasdaq down 90 points, and the S&P lost 24 points. Just before noon, the Dow sank 225 points, the low of the day. Stocks gradually recovered from those levels, during the afternoon session, led by Boeing, after a news report that pilots have been testing the company's software fix, to correct the 737 MAX problem, is expected to be sent to the FAA for review some time next week.
Market almost clawed back all the earlier losses, to close just below the flat line. All eleven S&P sectors closed the day with modest losses, led by Healthcare, Energy, Utilities, Technology, Communication Services, Financials, and Consumer Staples.
Factors Influencing Today's Market
Better than expected quarterly earnings performance from KD Homes.
The Boeing 737 MAX concerns is still a concern for investors, as Boeing seems to be making progress on it software fix.
WTI crude oil closed at $59.41/barrel, down 0.88%.
Major Asian markets were mixed overnight.
Falling bond yields, globally and here in the US is stoking fears of slowing economic growth, if not recession.
The European Central Bank has signaled, it may be on hold on interest rate policy.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were moderately lower. The Dow lost 34.13 points, Nasdaq fell 48.15 points, and the S&P down 48.15 points. Total NYSE volume traded, a light 3.33 billion shares. Declining issues outpaced Advancing issues 1.18:1.
andData Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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