Thursday's Market Recap - Stock Rebound From Deep Selloff As Trade War Tension Unnerve Investors
What is The Premarket Telling Us?
7:00 AM.
US stock futures are solidly lower this morning. Dow futures down 162 points, Nasdaq futures down 60 points, S&P futures down 18 points. Asian markets were weaker overnight, putting additional pressure on our markets.
On The Bond Desk:
The US 10 Year Bond Yield lower at 2.48% up 0.03%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $62.10/barrel, up 0.03%.
On the Earnings Calendar:
Disney reported solid quarterly results after the close yesterday. The company beat earnings and revenue estimates, sending shares higher in the after hours market.
In M&A News:
Chevron says Sayonara! to it deal to buy Anadarko Petroleum, choosing instead to walk away with the $1 Billion break up fee, instead of upping its price to match or surpass the competing Buffet supported Occidental Petroleum offer.
What About The Asian And European Markets?
Major Asian markets were decidedly lower. Japan (Nikkei 225) down 0.93%, Shanghai lost 1.48%, Hong Kong (Hang Seng) fell 2.39%.
Major European markets closed the day mostly lower. German (DAX) lost 1.69%, France CAC 40 down 1.93%, London FTSE 100 fell 0.87%.
Market And Sector Dynamics
Stocks opened today's trading session significantly lower, with the Dow down 190 points, Nasdaq fell 80 points, and the S&P up 23 points. Major uncertainty surrounding the the US China trade war, and the real threat of new tariffs set to going into effect at midnight tonight. Even with Chinese negotiators, arriving to continue talks today, is no guarantee that a deal can be struck.
All the affected sectors are lower, as a result, Basic Materials, Industrials,
Energy prices are also under pressure, with WTI crude oil slipping lower at $61.81/barrel, down 0.50%, but really, today downturn is all about tariffs.
Market sank even further after the open with the Dow sinking 450 points, the low of the session, shortly before noon. Stocks rebounded a short while later, after the President commented that the US and China could still make a deal, before tariffs go into effect at 12:01 AM tomorrow night.
Today's selloff was broad-based, and market tone was negative. Basic Materials, Technology, Consumer Discretionary, Healthcare, Consumer Staples, Industrials, and Communication Services, led the way lower. Real Estate closed the session with modest gains.
Factors Influencing Today's Market
Uncertainty about US China trade negotiations, and the President's threat of additional tariffs pressured markets today.
This week's Initial Jobless Claim fell 2000 to 238,000 claims.
Chevron has decided not to pursue its bid for Anadarko, clearing the way for Occidental Petroleum to become the winner.
WTI crude oil traded modestly lower today, closing at $61.87/barrel, down 0.40%.
April's Producer Price Index (PPI) rose 0.2% vs 0.30% estimated.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session, markets were all negative, but well off the lows of the day. The Dow lost 138.97 points, Nasdaq fell 32.73 points, and S&P gave up 8.70 points. Total NYSE volume traded, a modest 3.61 billion shares. Declining shares outpaced Advancing shares 1.37:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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