Thursday's Market Recap - Investors Are Growing More Negative On Effects Of US China Trade War.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are deep in the red at this hour. Dow futures down 236 points, Nasdaq futures down 98 points, and the S&P down 27 points. Asian markets closed lower while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 2.39%,down 0.04%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $60.38/barrel, down 1.69%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded with losses today. Japan (Nikkei 225) %, Shanghai down 1.36%, Hong Kong (Hang Seng) lost 1.58%
Major European markets was also lower. German (DAX) fell 1.78%, France CAC 40 lost 1.81%, London FTSE 100 fell 1.41%.
Market And Sector Dynamics
US markets opened deep in negative territory this morning, due to weaker than expected global PMI, out this morning, a realization by investors that US China trade war is going to be a long fought perhaps, multiyear process, which will negatively alter the corporate earnings and US economic performance. The Dow dived 252 points, Nasdaq plunged 90 points, and the S&P down 21 points.
Twenty minutes after the open the Dow was down 400 points, and sentiment was becoming more negative. All 30 Dow components traded lower. Not only were the major indices lower, but the US 10 Year Bond Yield, is also lower, as is the crude oil prices.
By 1:00 PM the Dow was down 420 points, the low of the day.
The selloff was broad based and deep, with nine of the eleven S&P sectors closing with losses, led by Energy, Technology, Industrials, Basic Materials, Financials, Consumer Discretionary, and Consumer Services. Real Estate and Utilities were higher.
Factors Influencing Today's Market
US China trade negotiation has returned to the front burner, and a major negative for markets.
WTI crude oil prices fell again in today's trading, closing at $58.19/barrel, down 5.26%.
US 10 Year Bond Yield ended the day at 2.322%, down 2.44%.
This week's Initial Jobless Claims closed fell 1000 to 211,000.
May's Flash PMI came in much less than expected, at 50.90 vs 52.4 estimated, showing US China trade war may be having a negative effect on the US economy.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, all the indices were decidedly lower. The Dow plunged 286.13 points, Nasdaq sank 122.56 points, and the S&P fell 34.03 points. Total NYSE volume traded, a moderate 3.82 billion shares. Declining shares outpaced Advancing shares better nearly 3.5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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