Wednesday's Market Recap - Investors Are Positive But Cautious Ahead Of G20 Summit In Japan.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing decidedly higher this morning, on comments from Treasury Secretary Mnuchin, that US China trade agreement was 90% complete, when negotiations stalled some weeks ago. At 3:00 AM, futures were mostly flat. Dow futures up 8 points, Nasdaq futures up 8 points, and S&P futures up 3 points. Futures did however, improve as the morning progressed.
On The Bond Desk:
The US 10 Year Bond Yield at 1.99%, down 0.03%.
Currency Desk:
Euro dollar:1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $58.75/barrel, up 1.59%.
On the Earnings Calendar:
Both FedX and Micron reported better than expected quarterly results after the closing bell yesterday. Both shares are trading higher this morning.
FedX beat lowered expectations for earnings, and revenues were inline with expectation.
Micron beats both earnings and revenue expectations. Earnings beat expectation, while revenues were basically met estimates.
General Mills also reported better than expected quarterly earnings.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mixed to lower. Japan (Nikkei 225) down 0.51%, Shanghai down 0.19%, Hong Kong (Hang Seng) up .019%.
Major European markets were mostly lower as as well. German (DAX) up 0.14%, France CAC 40 down 0.25%, London FTSE 100 down 0.08%.
Market And Sector Dynamics
Markets opened the trading session moderately higher, with the Dow up 70 points, Nasdaq up 57 points, and S&P up 10 points. Semiconductors are outperforming, after Micron's better than expected earnings report. So is FedX helping the Dow transports.
Stocks remained positive for most of day's session, with the Dow up over 100 points in the morning, as investors grapple with a panoply of concerns, namely US China trade talks, as President Trump leaves for the G20 meeting in Japan.The expected size of the FOMC interest rate cut, anticipated at its July meeting. And finally, geopolitical uncertainty, that is Iran.
Stock trended lower in the afternoon session, finally slipping into negative territory shortly before the close.
Seven of the eleven S&P sectors ended the day with losses, led by Utilities, Real Estate, Consumer Staples, Healthcare, Communication Services, and Basic Materials. Energy, Technology, and Consumer Discretionary were decidedly higher in the session.
Factors Influencing Today's Market
Better than expected quarterly earnings from FedX, Micron, and General Mills was a positive catalyst for stocks today.
Investor are hanging their hopes on the Trump Xi meeting on the side of the G20 Summit this weekend. A deal is not expected, but markets are expecting talks to resume, and that would be a good outcome.
May Durable Goods Orders declined 1.3%, suggesting modest weakness.
This week's EIA Status Report shows US Crude oil inventories fell/draw 12.8 million barrels to 469.6 million barrels.
WTI Crude Oil price closed the day at $59.38/barrel, up 2.68%.
Major Asian and European markets were mostly lower in their sessions today.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, markets were mixed. The Dow lost 11.40 points, Nasdaq gained 25.25 points, and the S&P was down 3.60 points. Total NYSE volume traded, 3.51 billion shares. Declining shares outpaced Advancing shares 1.13:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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