Thursday's Market Recap - Afternoon Fed Governor's Comment Pushed Stock Higher.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are modestly in the red this morning. Dow futures down 16 points, Nasdaq futures down 12.25 points, and S&P futures down 1.50 point. Major Asian markets were lower while we slept. On tap this morning, investors are grappling with surprisingly weak quarterly earning report from streaming giant, Netflix. The company beat earnings and revenue expectations, but net subscribers additions badly missed estimates.
On The Bond Desk:
The US 10 Year Bond Yield at 2.06%, down six basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $57.23/barrel, up 0.79%.
On the Earnings Calendar:
Netflix reported beat earnings and revenue estimates, but net subscriber addition disappointed investors. Shares of the company are down more than 10%.
Honeywell, Ebay, and United Health Care reported better than expected quarterly results.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets traded solidly lower. Japan (Nikkei 225) down 1.97%, Shanghai down 1.04%, Hong Kong (Hang Seng) 0.46%.
Major European markets were also lower today. German (DAX) lost 0.92%, France CAC 40 fell 0.38%, London FTSE 100 down 0.56%.
Market And Sector Dynamics
Stock opened for trading moderately lower. The Dow fell 65 points, Nasdaq fell 27 points, and S&P lost 6 points. Markets are being overshadowed by the weak quarterly earnings form Netflix, and pressure from shares of Boeing.
Markets trended lower for most of the morning session, with the Dow down nearly 200 points, the low of the day, around noon. Market gradually bounced off those lows as the afternoon session progressed, and ticked higher around 2:00 PM, after dovish comments from a Federal Reserve/FOMC member, and holding on to a slight gain at the close.
Market tone was mostly negative, but breath was balanced. Eight of the eleven S&P sectors closed with gains, led by Consumer Staples, Financials, Technology, Utilities, Healthcare, and Basic Materials. Communication Services, Consumer Discretionary, and Real Estate were the main laggards.
Factors Influencing Today's Market
Disappointing quarterly earnings from Netflix dominated market sentiment in today's session.
Honeywell, Ebay, and United Healthcare beat quarterly earnings expectations.
This week's Initial Jobless Claims rose 8,000 to 216,000.
WTI crude oil traded lower today, closing at $55.30/barrel, down 2.61%.
US 10 Year Bond Yield closed the day at 2.02%, down 0.83%.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading, the Dow gained 3.12 points, Nasdaq gained 22.04 points, and the S&P up 10.69 points. Total NYSE volume traded, 3.33 billion shares. Advancing shares outpaced Declining shares by 1.23:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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