Tuesday's Market Recap - Investor Sentiment Now In Sync With Movement Of The US 10 Year Bond.
What is The Premarket Telling Us?7:00 AM.
7:00 PM.
US stock futures are mildly negative this morning, after Monday's strong rally. Dow futures are down 27 points, Nasdaq futures down 3.25 points, and the S&P futures down 2.50 points. Shares of Home Depot are soaring, in the premarket, after the company handily beat both earnings and revenue expectation, and raised it's guidance for the rest of the year.
On The Bond Desk:
The US 10 Year Bond Yield at 1.60%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $55.96/barrel, up 0.34%.
On the Earnings Calendar:
Home Depot reported strong quarterly results, sending share of the company sharing.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) up 0.55%, Shanghai down 0.11%, Hong Kong (Hang Seng) down 0.23%.
Major European markets traded lower in their session. German (DAX) fell 0.55%, France CAC 40 down 0.50%, London FTSE 100 lost 0.90%.
Market And Sector Dynamics
Stocks opened the trading day modestly lower.The Dow fell 35.25 points, Nasdaq lost 17.20 points, and the S&P lost 7.84 points, giving back some of yesterday's gains. Overnight, China lowered its Loan Prime Rate, in an effort to stimulate business activity.
The Federal Reserve will be a main focus for investors, this week, as Central Bankers from around world meet in Jackson Hole Wyoming. Fed Chairman, Jerome Powell, is expected to address the gathering on Friday. Investors are eagerly awaiting his comments regarding the direction of interest rates, especially after the drastic decline in markets, in the second week of August, including that 800 point drop, in the Dow on Wednesday, August 14th., a week when recession fears gripped markets
Investors remained in a risk off mood for the entire session, as recession worries, US China trade war, and uncertainty around potential Fed interest rate action, in September.
One positive sentiment for markets today, was a strong earnings quarter for Home Depot, handily beating earnings and revenue expectations, and guided higher for the rest of the year.
Today's sell off was orderly, but broadly negative. All eleven S&P sectors closed the session with losses, led by Financials, Basic Materials, Consumer Staples, Communication Services, Energy, Healthcare, and Real Estate.
Factors Influencing Today's Market
A 'risk off' session led by recession fears, and Fed uncertainty, as world central bankers meet in Jackson Hole, Wyoming, later this week and weekend.
After the brief intraday inversion of the 10 Year and 2 Year Bond Yields a few days ago, markets have been nervous, and laser focused on the US 10 Year Bond. Stock rise when the bond yield rises, and declines when they fall.
US 10 Year Bond Yield closed today at 1.552%, down 3.48%
Strong quarterly earning performance from Home Depot.
Crude oil declined modestly today, closing at $56.34/barrel, down 0.23%.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's trading session the Dow lost 173.35 points, Nasdaq fell 54.25 points, and the S&P was down 23.14 points. Total NYSE volume traded, a light 3.04 billion shares. Declining shares outpaced Advancing shares by 1.60:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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