Friday's Market Recap - Stocks Tank On Rising Geopolitical Tensions In Iran.
What is The Premarket Telling Us?
7:00 AM.
Stocks futures are moderately higher. Dow futures up 57 points, Nasdaq futures up 13.75 points, and the S&P up 4 points. Asian markets closed with gains overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.04%, down 0.02%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $56.06/barrel, up 1.37%.
On the Earnings Calendar:
American Express quarterly results. The company beats earnings and revenue expectations.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were higher overnight. Japan (Nikkei 225) up 2.0%, Shanghai up 0.79%, Hong Kong (Hang Seng) up 1.07%.
Major European markets traded modestly higher. German (DAX) up 0.26%, France CAC 40 0.03%, London FTSE 100 0.21%.
Market And Sector Dynamics
Markets opened decidedly positive, with the Dow up 114 points, Nasdaq up 35 points, and the S&P up 9 points. Investors are banking on a rate cut later this month, and comments by New York Fed Governor, John Williams, yesterday afternoon, almost makes it a certainty. A strong quarterly earnings performance from Microsoft is also a major contributor to today's positive market sentiment. The company reported blowout earnings, including stellar performance from its Azure, cloud business. WTI crude oil traded higher early, at $53.63/barrel, up 0.60%.
Stocks remained positive for most of the session, until late afternoon, when news broke that geopolitical tension with Iran, had escalated, with Iran capturing a British registered tanker in the Straits of Hormuz. Stocks turned lower, and continued to decline, closing at the low of the day.
Market tone was negative. Eight of the eleven S&P sectors closed the session with moderate losses, led by Real Estate, Utilities, Communication Services, Healthcare, Consumer Discretionary, Consumer Staples, Technology, Financials, and Energy.
Factors Influencing Today's Market
A stellar quarterly earnings report from Microsoft was the main catalyst for markets early in the session.
Expectation of a Fed rate cut at their July meeting, a few days from now.
Geopolitical tensions with Iran has escalated, with the Iranian taking two tankers in the region.
WTI crude oil price closed at $55.63/barrel, up 0.60%.
This week's Baker Hughes US oil rig count fell 5 rigs to 779.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, the major markets were. The Dow gave up 68.80 points, Nasdaq fell 60.75 points, and the S&P fell 18.50 points. Total NYSE volume traded, a light 3.23 billion shares. Declining shares outpaced Advancing shares by 1.32:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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