Monday's Market Recap - Stocks Lower On Interest Rate Uncertainty, And Downgrade Of Global Equit
What is The Premarket Telling Us?
7:00 AM.
Stock futures are weak this morning, ahead of the opening bell. Dow futures down 75 points, Nasdaq futures down 37 points, and the S&P down 7.25 points. Asian markets were also weak overnight. Deutsche Bank is reportedly laying off 18,000 workers worldwide, in an effort to overhaul it operations. Apple was downgraded this morning by Rosenblatt Securities, from neutral to sell, based on the company sees as lackluster sales. Another factor pressuring stocks this morning, is a downgrade of global equity by Morgan Stanley.
On The Bond Desk:
The US 10 Year Bond Yield ticked up a bit to 2.05%, up 0.10%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $57.39/barrel, down 0.21%.
On the Earnings Calendar:
None.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) fell 0.98%, Shanghai lost 2.58%, Hong Kong (Hang Seng) down 1.54%.
Major European markets were modestly lower. German (DAX) lost 0.20%, France CAC 40 down 0.08%, London FTSE 100 slipped 0.05%.
Market And Sector Dynamicsa
Stocks opened the trading day solidly lower, under pressure from a downgrade of Apple, by Rosenblatt Securities. The Dow fell 129 points, Nasdaq down 50 points, and the S&P down 13 points. WTI crude oil up 0.43%, at $57.75/barrel, and the US 10 Year Bond Yield at 2.016%.
Markets traded in negative territory for the entire session, under from share of Boeing and Apple.
Investors are being cautious ahead of the Fed Chair, Jerome Powell's testimony on Capitol Hill later this week.
Six of the eleven S&P sectors closed the session with moderate losses, led by Basic Materials, Communication Services, Healthcare, Industrials, Technology, and Financials. Real Estate, Consumer Discretionary, and Consumer Staples had modest gains.
Factors Influencing Today's Market
Investors on Fed watch, after Friday's strong employment data indicates that the market's anticipated interest rate cut, may be in jeopardy.
Morgan Stanley downgraded global equity performance this morning.
Deutsche Bank announced it will layoff 18,000 employees, as part of a restructuring plan.
Apple was downgraded today by Rosenblatt Securities, from neutral to sell.
Boeing also sold off today, after a Saudi budget airline, Flyadeal switched it's order for 50 Boeing 737 Max planes, to buying 30 Airbus 320 planes instead, in a deal valued at $5.5 billion.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, the major indices were lower. The Dow lost 115.98 points, Nasdaq fell 63.41 points, and the S&P was down 14.46 points. Total NYSE volume traded, 2.94 billion shares. Declining shares outpaced Advancing shares by 1.76:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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