Thursday's Market Recap - Trump's Tweet Promising To Add 10% Tariff On $300 Bill On China Go
What is The Premarket Telling Us?
7:00 AM.
US stocks may be stating a moderate rebound this morning, after yesterday's drastic selloff due to the FOMC cut in interest rates yesterday. US stock futures are up, with Dow futures up 48 points, Nasdaq up 19.25 points, and S&P up 4 points. Asian markets fell overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.02%, down .04%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.21
Crude Oil:
WTI crude oil futures @ $57.83/barrel, down 1.28%.
On the Earnings Calendar:
General Motors reported solid second quarter earnings results before the bell this morning.
In M&A News:
Beyond Meat priced a secondary offering of shares today at $160 per share. New funds raised will be used to ramp up production.
What About The Asian And European Markets?
Major Asian markets were mostly lower overnight. Japan (Nikkei 225) added 0.09%, Shanghai down 0.810.%, Hong Kong (Hang Seng) down 0.76%.
Major European markets were mostly higher. German (DAX) gained 0.53%, France CAC 40 rose 0.70%, London FTSE 100 slipped 0.03%.
Market And Sector Dynamics
Stocks are staging a come back at the open. The Dow was up 24 points, Nasdaq up 20 points, and the S&P added 2 points. General Motors reported better than expected earnings this morning, which sent shares of the automaker higher. Investors seems to be slowly shaking off yesterday's selloff.
Markets was in 'risk on' mode for most of the morning and early afternoon session. At around noon, the Dow was up 300 points, the high of the day. By 1:30 PM, however, markets declined precipitously, when the President tweeted, that he would impose a 10% tariff in the remaining $300 Billion of China imports, sending shock waves through all markets. Not only did the Dow, Nasdaq, and S&P turned negative, but the US 10 Year Bond Yield sank below 1.90%, sending bank shares lower, and WTI crude oil fell more than 8% (the worst in 4 years), taking down the energy sector.
Today's selloff was drastic and sudden, with the Dow covering a 600 point roundtrip positive to negative. Eight of the eleven S&P sectors closed the session with losses, led by Financials, Energy, Industrials, Consumer Discretionary, Materials, Technology, Consumer Staples, and Communication Services.
Factors Influencing Today's Market
Trump tweet promising 10% tariff on the final $300 billion of China Imports, sending stocks, and bonds lower.
Strong quarterly earnings from General Motors.
Residual fallout from yesterday's Fed 0.25% interest rate cut. The first cut in 10 years.
Beyond Meat floats a secondary offering of shares priced at $160/share.
This week's US Jobless Claims rose 8,000 to 215,000, signalling a strong labor economy.
July PMI Manufacturing Index, came in at 50.4 vs 50.6 for June, confirming steady weakening in manufacturing sector.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets sank. The Dow fell 280.85 points, Nasdaq lost 64.30 points, and the S&P fell 26.82 points. Total NYSE volume Total NYSE volume traded, a moderately heavy 4.76 billion shares.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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