Friday's Market Recap - US China Trade Conflict Continues To Weigh Down Market
What is The Premarket Telling Us?
7:00 AM.
As US China trade tension continue to roil investors, US stock futures are pointing moderately negative. Dow futures down 108 points, Nasdaq futures down 41 points, and S&P futures down 13 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.41%, up .003%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $63.60/barrel, up 1.16%.
On the Earnings Calendar:
Deere Q2 Earnings disappointed investors.
Chipmaker, NVIDIA handily beat Q2 earnings expectation.
Baidu (China' Google) reported weaker than anticipated earnings, and could be a proxy for China's economic weakness.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower in Friday's trading. Japan (Nikkei 225) gained 0.89%, Shanghai down 2.48%, Hong Kong (Hang Seng) fell 1.16%.
Major European markets were modestly lower. German (DAX) lost 0.58%, France CAC 40 down 0.18%, London FTSE 100 slipped 0.07%.
Market And Sector Dynamics
Stock opened the trading day solidly in negative territory. The Dow sank 160 points, Nasdaq fell 56 points, and the S&P down 17 points. A return of US China trade tension has again become the major focus of investors. Markets are also responding to a surprisingly weak quarterly performance from agricultural equipment company, Deere. The company missed Q2 earnings, and cut full year guidance, as farmers hold on the their old equipment, uncertainty around trade with China.
Markets remained in negative territory for most of the morning session, with the Dow down 200 points at the low. Stock turned higher shortly before noon, with the Dow reaching a high of nearly 150 points.
Under pressure from US China trade tensions stocks hung out modestly above neutral for most of the afternoon session, before, falling sharply back below the flat line shortly after 3:00 PM.
Today's sell off was broad based, with ten of the eleven S&P sectors closing with moderate to modest losses. led by Industrials, Energy, Technology, Consumer Discretionary, Financials, Materials, and Communication Services. Utilities was the only sector that recorded gains today.
Factors Influencing Today's Market
US China trade tensions continued to weigh on markets in today's session.
Deere's disappointing second quarter performance was a negative for markets today.
Chipmaker, NVIDIA reported strong quarterly results.
WTI Crude Oil traded modestly lower today, at $62.76/barrel, down 0.17%.
This week's Baker Hughes Oil Rig Count fell 3 rigs to 802 total rigs.
May's Consumer Sentiment came in at a hot 102.4 vs 97.5 estimated.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's session, all the indices were moderately lower. The Dow lost 98.70 points, Nasdaq fell 81.77 points, and the S&P lost 16.79 points. Total NYSE volume traded, a modest 3.26 billion shares. Declining shares outpaced Advancing shares nearly 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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