Wednesday's Market Recap - Stocks Turned Around Mid-Morning As Pres Backs Off EU Auto Tariffs Fo
What is The Premarket Telling Us?
7:00 AM.
This morning's market setup is moderately negative, with Dow futures down 76 points, Nasdaq futures down 19 points, and S&P futures down 8 points, as trade war woes continues to weigh on markets.
On The Bond Desk:
The US 10 Year Bond Yield at 2.42%, up 0.01%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $61.11/barrel, down 1.06%.
On the Earnings Calendar:
Alibaba quarterly earnings beat analyst estimates before the bell this morning, sending shares of the company higher
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets closed higher overnight. Japan (Nikkei 225) up 0.58%, Shanghai rose 1.91%, Hong Kong (Hang Seng) gained 0.52%.
Major European markets also closed with gains. German (DAX) gained 0.90%, France CAC 40 up 0.62%, London FTSE 100 rose 0.76%.
Market And Sector Dynamics
Stock opened the trading day with the Dow down 158 points, Nasdaq fell 50 points, and the S&P fell 5 points. Weak economic data in China, overnight, and Europe this morning, and a disappointing read on April Retail Sales is weighing on markets early. Retail Sales came in at -0.3% vs 0.2% expected. WTI crude oil price is also on the decline early, currently at $61.28/barrel, 0.79%.
Markets turned positive around 10:30 AM, after new broke that the President plans to postpone tariffs on European motor vehicles. Shares of technology, including FAANG led the markets higher.
At the low of the morning the Dow was down 190 points, but recovered, reaching a high of more than 180 points, half an hour before the close of trading.
Eight of the eleven S&P sectors closed the day with modest gains led by Communication Services, Technology, Consumer Staples, Consumer Staples, Real Estate, and Energy were the outperformers. Financials, and Basic Materials were the laggards.
Factors Influencing Today's Market
Weak economic data in China, Europe, and here in the US weighed negatively on the markets early in the session.
The administration plans to postpone threatened tariffs on European motor vehicle imports, sends markets higher.
Alibaba handily beats quarterly earnings expectations, sending shares of the company higher.
April Retail Sales disappoints, coming in at minus 0.3% vs 0.2% expected.
This week's EIA Petroleum Status Report rose 5.4 million to 472 million barrels.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, the Dow was up 115.97 points, Nasdaq up 87.65 points, and the S&P gained 16.55 points. Total NYSE volume traded, a modest 3.08 billion shares. Advancing shares outpaced Declining share nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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