Thursday's Market Recap - Down Session Due To Mixed Corporate Earnings And A Extremely Dovish EC
What is The Premarket Telling Us?
7:00 AM.
Stock futures are mixed at this hour, indicating that the Dow and the other indices could diverge at the open. Dow futures are up 47 points, Nasdaq futures down 27 points, and the S&P futures down 1 point. Today is the busiest day of this earnings season, with Alphabet (Google), Amazon, reporting after the close today. In Europe, the European Central Bank (ECB) has decided to leave interest rates at existing levels, while keeping its dovish stance, and all but promising a rate cut in September.
On The Bond Desk:
The US 10 Year Bond Yield at 2.06%, down 0.01%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $56.52/barrel, up 1.15%.
On the Earnings Calendar:
Facebook handily beat earnings results, after the close yesterday. The company also announced it's the subject of an Federal Trade Commission antitrust review.
3M, Comcast, Southwest Airlines, American Airlines, all reported before the bell this morning.
Alphabet (GOOGL), AMZN, Intel, SBUX, report earnings after the close of trading today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) rose 0.22%, Shanghai up 0.48%, Hong Kong (Hang Seng) gained 0.25%.
Major European markets were all lower a day after new Prime Minister, Boris Johnson took the helm, heightening the risk of a no deal Brexit. German (DAX) fell 1.28%, France CAC 40 lost 0.50%, London FTSE 100 lost 0.17%.
Market And Sector Dynamics
One could argue that the fate of the today's market was determined once ECB President, Mario Draghi, announced that he would be leaving interest rates at existing levels, while almost promising a rate cut in September. Stock opened lower today, with the Dow down 29 points, Nasdaq down 29 points, and S&P down 4 points. Shares of Boeing, Southwest Airlines, and American Airlines weighing negatively on the averages, due to fall out from not being able to fly the grounded 737 MAXs. Social media giant, Facebook, reported a blowout quarter, but shares are lower, after they announced that they were the subject of a FTC antitrust investigation.
Stocks traded in negative territory for the entire trading session, hitting the low of the day around 1:00 PM., with the Dow down nearly 200 points. Stocks bounced modestly off those lows, during the afternoon session, and into the close.
Today's selloff was broad based, but orderly, with all 11 S&P sectors ending the session with losses, led by Energy, Technology, Basic Materials, Consumer Discretionary, Financials, Healthcare, and Real Estate.
Factors Influencing Today's Market
ECB President, Mario Draghi, held interest rates at existing level, promised a rate cut in September.
Facebook reported blowout quarterly earnings after the close yesterday, and also reported that the FTC had began an antitrust inquiry into the company. Shares traded lower today.
This week's Initial Jobless Claims fell 10,000 claims to 206,000 total.
WTI crude oil close the day at $56.09/barrel, up 0.38%.
US 10 Year Bond Yield closed at 2.083%, up 1.61%.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed all the major indices lost ground. The Dow lost 128.99 points, Nasdaq fell 82.96 points, and the S&P lost 15.89 points. Total NYSE volume traded, a moderate 3.66 billion shares. Declining shares outpaced Advancing shares by 2.71:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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