Wednesday's Market Recap - Dow Moderately Lower, On Mixed Earnings, And A Modest Drop In Crude O
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mildly higher. Dow futures up 25 points, Nasdaq futures up 0.25 (fraction), and S&P futures down 0.25 (fraction). Investors are expecting a flurry of earnings today. Boeing reported earnings, which were better than expected, and also discontinued it share buyback program to conserve cash, in light of the grounding of the 737 Max planes. Shares of the company fell after the report, but turned higher a short while later, helping to push the Dow futures higher.
On The Bond Desk:
The US 10 Year Bond Yield at 2.57%, down 0.02%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $65.99/barrel, down 0.47%.
On the Earnings Calendar:
Ebay, and Texas Instruments beats quarterly earnings estimates.
Boeing reported before the opening bell this morning.
Facebook, Microsoft, Visa, Paypal, Chipotle, Tesla, and Xilinx report after the closing bell this evening.
In M&A News:
Occidental Petroleum make bid for Anadarko, to compete with Chevron's bid announced two weeks ago.
What About The Asian And European Markets?
Major Asian markets mostly lower. Japan (Nikkei 225) down 0.27%, Shanghai up 0.09%, Hong Kong (Hang Seng) down 0.53%
Major European markets closed mixed. German (DAX) up 0.63%, France CAC 40 down 0.28%, London FTSE 100 down 0.68%
Market And Sector Dynamics
Stock opened modestly weak, with the Dow down 38 points, Nasdaq up 3 points, and the S&P down 3 points. Boeing reported better than expected Q1 earnings taking into consideration the grounding of the 737 MAX fleet. Shares of the company fell at first, then recovered, helping the Dow. WTI crude oil price is modestly higher, up 0.1% to $66.35/barrel. Ebay, and Texas Instruments also reported solid quarterly earnings after the closing bell yesterday evenings.
Earnings for the first quarter has been coming in much better than expected, leading to a consensus among investors that earlier fears of a recession had been overblown.
Markets were modestly negative for the entire session, despite a brief moment in the morning session when the Dow was up about 20 points. At the low, the Dow was down about 66 point, shortly after 1:00 PM.
Eight of the eleven S&P sectors ended the day with modest losses, led by Energy, Communication Services, Basic Materials, Industrials, Financials, Healthcare and Consumer Staples. Real Estate, Utilities, and Consumer Staples closed with gains.
Factors Influencing Today's Market
Facebook, Microsoft, Chipotle, and Visa all beat analyst first quarter earnings expectations.
Boeing reported better than expected earnings, and cut share buyback programs, to conserve cash in light of the grounding of the 737 Max planes.
This week's EIA Petroleum Status Report shows an inventory build of 5.5 million barrels, to 460.6 million barrels.
WTI crude oil fell modestly in the session, closing at $65.89/barrel, down 0.62%.
Asian markets were mostly lower in their session. European stocks ended mixed.
Occidental Petroleum has floated a competing bid for Anadarko Petroleum, rivaling Chevron's bid of two weeks ago.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the major indices were moderately lower. The Dow fell 59.34 points, Nasdaq lost 18.81 points, and the S&P gave up 6.43 points. Total NYSE volume traded, a modest 3.41 billion shares. Advancing shares and Declining shares were even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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