Wednesday's Market Recap - A Calm Trading Session Due To A Mostly In Line CPI, Report And A Decl
What is The Premarket Telling Us?
7:00 AM.
This morning's market setup is modestly positive, with the Dow futures up 38 points, Nasdaq futures up 5 points. The CEOs of major US banks will testify before the House on Capitol Hill today. Asian markets were lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.50%, down 0.02%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $64.41/barrel, up .067%.
On the Earnings Calendar:
None
In M&A News:
Pinterest IPO is expected next week.
Uber may be getting ready for its own IPO in early May.
What About The Asian And European Markets?
Major Asian markets were mostly lower overnight. Japan (Nikkei 225) fell 0.53%, Shanghai up 0.07%, Hong Kong (Hang Seng) lost 0.53%.
Major European markets closed mixed. German (DAX) up 0.47%, France CAC 40 up 0.25%, London FTSE 100 down 0.05%.
Market And Sector Dynamics
The markets opened slightly higher. The Dow rose 45 points, Nasdaq up 15 points, and S&P gained 5 points. March CPI read released this morning was uneventful, rising 0.40%. Excluding food and energy, the rise was 0.10% vs 0.20% expected. WTI crude oil was up early, at $64.38/barrel, up 0.61%.
Stocks dipped lower shortly after the opening bell, with the Dow falling 45 points, before returning to the flat line, and remained mostly flat for the rest of the session. US 10 Year Bond Yield also added some negative pressure intraday, by falling well below the 2.50% level, where it seems to have stabilized in recent days.
As Uber, and Pinterest get ready for their respective IPOs, shares of Lyft has continued to fall, and is well below its IPO price of $72/share, and the $87.24/share where it started to trade. Speculation is that investors may be selling Lyft to buy Uber.
Markets tone was mostly positive, with eight of the eleven S&P sectors closing the day with gains, led by Real Estate, Technology, Consumer Discretionary, Energy, Consumer Staples, and Communication Services.
Factors Influencing Today's Market
March's CPI rose a consensus 0.40%, but excluding food and energy, rose only 0.10%, and less than the 0.2% expected.
Major US Bank CEOs testified in the House, on a wide range of topics, on Capitol Hill today.
The US 10 Year Bond Yield fell below the 2.50% level intraday, and closed at 2.465%, down 1.48%.
Pinterest IPO is scheduled for next week, and Uber is reportedly planning to IPO in early May.
WTI crude oil prices closed at $64.71/barrel, up 0.98%.
This week's EIA Petroleum Status Report rose/build by 7.0 million barrels 456.6 million barrels, and 6.5% above a year ago.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were slightly higher. The Dow rose 6.56 points, Nasdaq gained 54.96 points, and the S&P added 10.01 points. Total NYSE volume traded, a light 3.04 billion shares. Advancing shares outpaced Declining shares almost 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments