Wednesday's Market Recap - Stocks Lost Ground For Second Day, As Investor Look For New Catalyst.
What is The Premarket Telling Us?
8:00 AM.
Stock futures are mostly flat, with the Dow up 2 points, Nasdaq up 5.50 points, and the S&P up a fraction 0.25 point. Asian markets were down overnight. Amazon Prime Day is in full swing.
On The Bond Desk:
The US 10 Year Bond Yield at 2.12%, up 0.03% or three basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $58.19/barrel, up 0.99%
On the Earnings Calendar:
Bank of America beat 2nd. Qtr. Earning estimates.
United Airlines also beat 2nd.Qtr. Earnings estimates
Netflix reports earnings after the close this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets fell in their session. Japan (Nikkei 225) lost 0.31%, Shanghai down 0.20%, Hong Kong (Hang Seng) 0.09%.
Major European markets also traded lower. German (DAX) lost 0.72%, France CAC 40 down 0.76%, London FTSE 100 fell 0.55%.
Market And Sector Dynamics
Stocks opened the trading day flat to mixed, with the Dow down 16 points, Nasdaq up 5 points, and the S&P down 1 point. So far second quarter earnings has been good. Bank of America reported a strong quarter this morning, sending its shares higher. United Airlines reported a strong quarter after the bell yesterday evening, and its shares are also up in early trading. WTI crude oil is moving higher, currently at $58.22/barrel, up 1.04%.
Stocks traded in negative territory for the entire trading session, as investor turn their focus lack of progress with US China trade talks, possibility that the markets are overbought, and the absence of a new catalyst to propel markets forward.
Market tone was negative, and the selloff was fairly broad based, with nine of the eleven S&P sectors ending the day with losses. Industrials, Energy, Consumer Discretionary, Communication Services, Financials, Basic Materials, Real Estate, and Technology. Utilities was higher.
Factors Influencing Today's Market
Strong quarterly earnings from Bank of America, and United Airlines.
Amazon Prime Day continues
Investors worried about lack of progress in US China trade talks.
Reported bank earnings indicates Net Interest Margin (NIM) is, and will continue to hurt banks, as the Fed contemplates tax cuts.
Boeing allocates $50 Million of the $100 Million it had set aside for the 747 Max crashes, for victims.
Crude oil fell to $56.78/barrel, down 1.46%.
This week's EIA Petroleum Status Report show US crude oil inventories fell 3.1 million barrels to 455.9 million barrels.
US 10 Year Bond Yield at 2.043%, down 2.99%.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, stocks were down for a second consecutive day. The Dow fell 115.78 points, Nasdaq declined 37.59 points, and the S&P lost 19.62 points. Total NYSE volume traded, a light 3.22 billion shares. Declining shares outpaced Advancing shares 1.68:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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