Monday's Market Recap - Fallout From The Huawei Ban Sank Markets.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately negative in this morning's market setup. Dow futures are down 80 points, Nasdaq futures down 60 points, and S&P futures down 12 points. Major Asian markets lost ground last night, and Europe is weaker early in their session. US and global markets are reeling from President Trump's Executive Order to prohibit American companies from purchasing equipment from Chinese technology company, Huawei.
On The Bond Desk:
The US 10 Year Bond Yield 2.39%
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.29
Crude Oil:
WTI crude oil futures
On the Earnings Calendar:
None
In M&A News:
The FCC approved the T-Mobile Sprint merger deal with some conditions. However the DOJ may not on the same page.
What About The Asian And European Markets?
Major Asian markets were mixed to neutral. Japan (Nikkei 225) up 0.24%, Shanghai down 0.41%, Hong Kong (Hang Seng) down 0.57%.
Major European markets traded lower. German (DAX) fell 1.61%, France CAC 40 down 1.46%, London FTSE 100 down 0.51%
Market And Sector Dynamics
Stock opened decidedly negative, with the Dow down 121 points, Nasdaq down 96 points, and S&P fell 19 points. Investors learned this morning, that Google will be cutting some ties with Hauwei. This is taking a toll of the technology stocks, early in the session, led by Alibaba, FB, Apple, and the US chipmakers, Netflix, which are all trading down.
By mid-morning, the Dow was down a mere 20 points, having cut its morning losses, and climbing back almost to the neutral line.
Stocks remained in that down 20 - 60 points range for the rest of the trading session, before yielding some ground a few minutes before the close.
Eight of the eleven S&P sectors traded with losses in the session, led by Technology, Real Estate, Basic Materials, Communication Services, Consumer Discretionary, and Industrials. Financials and Utilities were modestly higher.
Factors Influencing Today's Market
Semiconductor/Chip and technology stocks took a walloping today after the Administration placed restrictions on Huawei doing business with US companies.
Intraday the US 10 Year Bond Yield hit a low of 2.38% before closing at 2.419%, up 0.73%.
WTI Crude Oil prices inched higher today, to close at $$63.10/barrel, up 0.54%.
The Federal Communication Commission approved T-Mobile plan to buy Sprint.
Market Close Volume Traded And Advance Decline Ratio
At the close, the Dow lost 84.10 points, Nasdaq sank 113.91 points, and the S&P was down 19.30 points. Total NYSE volume traded, a light 2.32 billion shares. Declining shares outpaced Advancing shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments