Wednesday's Market Recap - Stocks Sold Off Triple Digits As 'On Hold' Fed Leaves Rates U
What is The Premarket Telling Us?
7:00 AM.
This morning's market setup is looking moderately positive. Dow futures are up 78 points, Nasdaq futures up 51 points, and the S&P futures up 9 points. Asian markets traded lower overnight. The Fed/FOMC will announced its decision on interest rate policy this afternoon.
On The Bond Desk:
The US 10 Year Bond Yield at 2.51% down 0.03%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $63.66/barrel, down 0.39%
On the Earnings Calendar:
Apple reported better than expected first quarter earnings report. Shares are surging in the premarket.
CVS and Mondelez, report better than expected earning this morning.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) down 0.22%, Shanghai up 0.52%, Hong Kong (Hang Seng) down 0.65%
Major European markets were mixed. German (DAX) up 0.13%, France CAC 40 up 0.10%, London FTSE 100 down 0.44%.
Market And Sector Dynamics
Stocks opened the trading session moderately higher, with the Dow up 56 points, Nasdaq rose 42 points, and the S&P rose 6 points. Thanks to shares of Apple which has surged higher after beating analyst first quarter expectations, after the closing bell last evening.
CVS Healthcare, and Mondelez, the consumer staples company also reported solid earnings before the opening bell this morning, adding positives sentiment to the markets.
Stocks traded modestly above the flat line during the morning, and early afternoon session, before preciptuosly selling off, after the Fed/FOMC announced its decision to leave interest rates unchanged, and intensified after the Fed Chair's press conference. Markets may have sold itself, on a Fed rate cut. This disappointed investors and they sold of the market.
Today's selloff was broad based, with ten of the eleven S&P sectors closing lower. Energy, Basic Materials, Consumer Staples, Consumer Discretionary, Utilities, Financials, Industrials, and Healthcare, Technology led the way lower.
Factors Influencing Today's Market
After beating quarterly earnings expectation shares of Apple was a positive catalyst for stocks today.
CVS and Mondelez also reported better than expected earnings.
The Fed/FOMC left interest rate unchanged, leaving investors disappointed, and the market sold off.
A surprising strong April ADP Employment report shows the private sector created 275,000 new jobs.
This week's EIA Petroleum Status Report shows crude oil inventories rose/build 9.9 million barrels, to 470.6 million barrels.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the major indices were lower. The Dow fell 162.77 points, Nasdaq fell 45.75 points, and the S&P lost 22.10 points. Total NYSE volume traded, a modest 3.61 billion shares. Declining shares outpaced Advancing shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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