Tuesday's Market Recap - A Mixed Session, Mixed Economic Data, Mixed Earnings.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are currently flat. Dow futures up 17 points, Nasdaq futures up 6.25 points, and the S&P was neutral. Asian markets were mixed overnight, as China PMI read came in slightly softer than expected.
On The Bond Desk:
The US 10 Year Bond Yield at 2.54%, up 0.04% or four basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $64.41/barrel, up 1.43%.
On the Earnings Calendar:
Alphabet reported after the bell last evening. The company beat earnings expectation, but revenues fell short, sending shares more than 8% lower in the premarket.
Reporting before the bell this morning:
McDonald's beats earning expectations
Mastercard beats earnings expectations
Apple reports earnings after the close of trading today.
Both GM, and GE, reported a beat on earnings, and revenues before the bell this morning.
In M&A News:
In a surprising move this morning Warren Buffet's Berkshire Hathaway, announced it is taking a $10 billion stake, in Occidental Petroleum, to help it acquire Anadarko Petroleum. Investors are now waiting for Chevron's response.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) down 0.22%, Shanghai up 0.52%, Hong Kong (Hang Seng) fell 0.65%
Major European markets also closed mixed. German (DAX) rose 0.13%, France CAC 40 0.10%, London FTSE 100 down 0.30%.
Market And Sector Dynamics
Stocks began the trading day mixed. The Dow rose 25 points, Nasdaq fell 57 points, and the S&P gave up 4 points. Alphabet (Google) is pressuring the Nasdaq lower, base on earnings perceived as disappointing, by investors. The company beat earninigs, but revenues missed expectation. WTI crude oil is higher early, currently at $64.20/barrel, up 1.09%. Market breath is hovering at 2:1 advancing to declining stocks.
Markets sank to the low of the day mid-morning, with the Dow down 130 points, but rebounded a short while later, back to the neutral line, and traded just above for the rest of the afternoon session.
Nine of the eleven S&P sectors closed the day with moderate gains, led by Utilites, Consumer Staples, Real Estate, Basic Materials, Healthcare, Industrials, and Financials.
Factors Influencing Today's Market
Warren Buffet/Berkshire Hathaway will invest in Occidental Petroleum to facilitate its bid for Anadarko.
Alphabet (Google) reported mixed first quarter earnings, send the shares nearly 8% lower in the session.
McDonald's, General Electric, and General Motors beat first quarter earning estimates this morning.
Mastercard also beat earning expectations.
Chigago PMI for April was weaker than expected at 52.6 down 6.4 point.
April Consumer Confidence was strong at 129.2 vs 127.1 estimated.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were mixed. The Dow gained 38.52 points, Nasdaq fell 66.47 points, and the S&P rose 2.80 points, and another record high. Total NYSE volume traded, a modest 3.87 billion shares. Advancing shares outpaced Declining shares 1.20:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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