Thursday's Market Recap - Dow Gains Even As US 10 Bond Yields Inverted Intraday.
What is The Premarket Telling Us?
7.00 AM.
US stock futures were modestly negative at this hour. Dow futures up 47 points, Nasdaq futures down 25 points, and the S&P down 6 points. Asian markets were mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.58%, up 0.02% or two basis points.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $55.97/barrel, up 0.52%.
On the Earnings Calendar:
Nordstrom reported better than expected earning after the close of trading, yesterday.
Dick's Sporting Goods handily beat quarterly expectation for earnings and revenues. The company also increased its full year guidance.
In M&A News:
What About The Asian And European Markets?
Major Asian markets mixed to lower. Japan (Nikkei 225) up 0.05%, Shanghai up 11%, Hong Kong (Hang Seng) down 0.84%.
Major European markets were lower. German (DAX) down 0.47%, France CAC 40 down 0.87%, London FTSE 100 down 1.05%.
Market And Sector Dynamics
Markets opened higher today, buoyed by strong retail earnings quarter from Dick's Sporting Goods, as the company beats earning and revenue expectations, and raised its guidance for the full year. Nordstrom also reported a better than expected quarter, earnings beat expectations, but revenues fell short. The Dow jumped 86 points, Nasdaq gained 17 points, and the S&P added 8 points. WTI crude oil trended higher, currently at $56.22/barrel, 0.77%.
The direction of the 10 Year Bond Yield, continues to lead the stock market. The market rises when the bond yield rises, and falls when bond yield falls.
The markets continued it rise early in the morning session, with the Dow reaching a high of 186 points, however, an hour after the open, the market sold off. The Dow fell into negative territory, after the US 10 Year Bond Yield, and the US 2 Year Bond Yield briefly inverted.
Earlier, the European Manufacturing PMI continued its decline, but was better than was expected. Similarly, US Manufacturing PMI fell below the 50 neutral number, to 49.9 which is considered negative.
Six of the eleven S&P sectors closed the day with moderate losses, led by Basic Materials, Healthcare, Energy, Technology, Communication Services, and Consumer Discretionary.
Factors Influencing Today's Market
Another brief intraday inversion of the US 10 year bond yield, and the US 2 year bond yield trigger a selloff.
European manufacturing PMI came in lower, but better than was anticipated.
US manufacturing PMI also came in at 49.9. A number below 50 is considered negative.
This week's Initial Jobless Claims declined 12,000 to 209,000. Signaling continue strength in the labor economy.,
Fed Chair, Jerome Powell will address the central bank symposium in Jackson Hole, Wyoming.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading markets were mixed. The Dow rose 49.51 points, Nasdaq fell 28.82 points, and the S&P lost 1.48 points. Total NYSE volume traded, a light 2.91 billion shares. Declining shares outpaced Advancing shares by 1.14:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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