Monday's Market Recap - A Mostly Balanced Trading Session Ahead Of The Fed/FOMC Rate Decision On
What is The Premarket Telling Us?
7:00 AM.
Futures are flat at this hour, indicating investors somewhat undecided about market direction at the open. Dow futures down 3 points, Nasdaq futures down 6 points, and the S&P futures down 2 points. Asian market were lower overnight, as global markets wait for the Fed/FOMC decision on Wednesday afternoon. This week we have a slew of earnings results from big pharmaceutical companies, such as Pfizer, Lilly, and Merck.
On The Bond Desk:
The US 10 Year Bond Yield sits at 208%, up one basis point.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at $56.03/barrel, down 0.30%.
On the Earnings Calendar:
Beyond Meat, the plant based meat company, will report its first quarter as a public company, after the close of trading today. Shares of the company are up more than 800% since its IPO in May.???
In M&A News:
Pfizer plans to acquire Mylan, the Epipen maker, in a deal worth $2.8 Billion.
Beyond Meat reports it first quarter as a public company, after the close of trading today.
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) down 0.19%, Shanghai down 0.12%, Hong Kong (Hang Seng) down 1.03%.
Major European markets were ended the day mixed. German (DAX) lost 0.02%, France CAC 40 down 0.16%, London FTSE 100 added 1.82%.
Market And Sector Dynamics
Markets opened the trading day mixed. The Dow rose 20 points, Nasdaq fell 5 points, and the S&P fell 1 point. It's another busy week of corporate earnings, dominated by Pharmaceutical companies.This morning, investors learned of a merger deal. Pfizer is buying Mylan which it will combine with its Upjohn divison, where it has all its off patent drugs.
Today, the markets were in a 'wait and see mode' ahead of the Fed/FOMC July meeting which begins tomorrow, US China trade talks schedule for tomorrow in Shanghai, and a slowing down in the global economy.
The markets traded mostly, in a narrow range, above the flat line for most of the session, as investors digested the earnings, and the size of the rate cut anticipated from the Fed on Wednesday. Most expect a 0.25 basis point cut, while others, the remote possibility of a 0.50 basis point cut.
Today's trading was basically balanced, with seven of the eleven S&P sectors closing with losses, led by Financials, Consumer Discretionary, Communication Services, Healthcare, Energy, Basic Materials, and Consumer Staples.
Factors Influencing Today's Market
Mixed second quarter earnings results from Pfizer, as the company beat earnings, but missed revenue expectation.
Mylan beats second quarter earnings results surpassing earnings and revenue expectations.
Pfizer's plan to combine its Upjohn 'off patent' business with with Mylan. Shares of the companies traded in opposite directions. Pfizer was down, while Mylan traded higher.
WTI crude oil prices closed today at $56.87/barrel, up 1.19%.
The US 10 Year Bond Yield ticked lower at 2.063%, down 0.27%
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets were mixed. The Dow gained a modest 28.90 points, but the Nasdaq was down 36.88 points, and the S&P fell 4.89 points. Total NYSE volume traded, a light 3.22 billion shares. Advancing and Declining shares were mostly even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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