Friday's Market Recap - Stocks Tumble Three Straight Days As Tariff Fears Grip Markets.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mildly lower this morning, after yesterday's selloff. Dow futures down 30 points, Nasdaq fell 35 points, and the S&P futures down 7 points. Asian markets closed with deep losses overnight. US China trade war worries is weighing negatively on global markets.
On The Bond Desk:
The US 10 Year Bond Yield at 1.89%, down 0.03%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $55.20/barrel, up 2.32%.
On the Earnings Calendar:
Exxon Mobil beat second quarter earnings results, beating analyst earnings and revenue expectations.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets lost significant ground today. Japan (Nikkei 225) sank 2.35%, Shanghai lost 1.41%, Hong Kong (Hang Seng) fell 2.35%.
Major European markets also dived today. German (DAX) fell 3.11%, France CAC 40 down 3.57%, London FTSE 100 down 2.34%.
Market And Sector Dynamics
Markets opened moderately lower. The Dow fell 55 points, Nasdaq down 55 points, and the S&P down 10 points. Investors are trying to decipher where markets go from here. Stocks sold off hard over the last two days, on disappointment over US China trade talks and the threat of more tariffs.
PMI manufacturing data, across the globe has been weakening noticeably, and central banks are becoming increasingly dovish, promising to inject stimulus to keep their economies from falling into recession. Without a doubt, the US is the best house in the neighborhood, but some investors worry, for how long, in this globally connected world.
Stocks sank lower during the morning session, with the Dow down 315 points, around 11.00 AM. Markets regained some of the morning's losses during the remained of the session, but failed to get back to positive territory.
Today's selloff was fairly broad based, and market sentiment was negative. Eight of the eleven S&P sectors closed the session with losses, led by Technology, Energy, Basic Materials, Consumer Discretionary, Communication Services, Industrials, Financials and Healthcare.
Factors Influencing Today's Market
US China trade uncertainty, and the possible fallout of a 10% tariff on the final $300 billion of China imports.
Better than expected second quarter earnings from Exxon Mobil.
July Unemployment report show the economy created net 164,000 jobs, and the unemployment held at 3.7%.
This week's Baker Hughes US Oil Rig count fell 6 rigs to 770 total.
WTI crude oil closed at $55.66/barrel, up 3.17%, less than half of the 7.90%, it lost yesterday.
The US 10 Year Bond Yield closed at 1.843%, down 3.10%, and has been in free fall since the FOMC 0.25% interest rate cut on Wednesday.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed for the day, all the major indices were in negative territory. The Dow lost 98.41 points, Nasdaq lost 107.05 points, and the S&P fell 21.51 points. Total NYSE volume traded, a light 3.86 billion shares. Declining shares outpaced Advancing shares by 1.58:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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