Tuesday's Market Recap - Threat Of EU Tariff, And Cut In IMF Global Economic Growth Forecast Sen
What is The Premarket Telling Us?
7:00 AM.
Stock futures are flat to slightly lower in this morning's setup. Dow futures down 4 points, Nasdaq futures down 12 points, and S&P futures down 3 points. European markets were mixed overnight. Breaking news of the possibility of US tariffs on EU products including Airbus planes, is a big concern for investors, sending the futures market decidedly lower, late in the premarket.
Adding investors concern this morning, is news that the IMF, has cut its global economic forecast for the third time this year.
On The Bond Desk:
The US 10 Year Bond Yield sits at 2.52%, up .02% or two basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $64.46/barrel, up 0.09%.
On the Earnings Calendar:
First Quarter Earnings season begins next week.
In M&A News:
Pinterest IPO road show continues today.
What About The Asian And European Markets?
Major Asian markets were mixed to mostly higher. Japan (Nikkei 225) rose 0.19%, Shanghai down 0.16%, Hong Kong (Hang Seng) added 0.27%.
Major European markets closed with moderate losses. German (DAX) fell 0.94%, France CAC 40 down 0.65%, London FTSE 100 down 0.35%.
Market And Sector Dynamics
Stocks opened the trading session decidedly negative with the Dow down 178 points, Nasdaq down 29 points, and the S&P down 14 points. This after the Trump administration threatened the new tariffs on EU products including planes and other aircraft from Airbus Industries, the European airplane manufacturer.
Shares of Boeing are lower again this morning, as are the shares of some of the local airlines affected by the grounding of the 737 MAX planes, such as American Airlines, and Southwest Airlines, which have lower their Q1 earnings guidance.
Stock traded in negative territory for the entire session. The selloff was broad based with nine of the eleven S&P sectors closing the session with losses. Industrials, Energy, Consumer Discretionary, Financials, Basic Materials, Technology, Healthcare, and Real Estate, were the major laggards. Utilities was modestly higher.
Factors Influencing Today's Market
The US administration has threatened tariffs on products from the EU, including Aircraft, manufactured by Airbus Industries.
Boeing shares continues to weigh negatively on markets.
The International Monetary Fund has again cut its global economic forecast, for the third time this year.
American Airlines, and Southwest Airlines has both lowered Quarter one earnings guidance due to the grounding of their 737 MAX fleet.
The February JOLTS (Job Opening) report showed a sharp decline in job opening 7.087 vs 7.565 expected.
WTI crude oil closed modestly lower at $63.98/barrel, down 0.68%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended. The major indices were solidly lower. The Dow fell 190.44 points, Nasdaq lost 44.61 points, and the S&P gave up 17.57 points. Total NYSE volume traded, a light 3.00 billion shares. Declining shares outpaced Advancing shares by 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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