Tuesday's Market Recap - Stock Gave Up Early Gains, And Closed With Losses.
What is The Premarket Telling Us?
7:00 AM.
Slightly positive or flat best describes US stock futures, at this hour. Dow futures up 5 points, Nasdaq up 7 points, and S&P futures up 1 point. Asian markets were mostly up overnight, following our positive markets yesterday.
On The Bond Desk:
The US 10 Year Bond Yield 1.54%, up one basis point.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $54.33/barrel, up 1.29%.
On the Earnings Calendar:
Smuckers missed its quarterly performance expectations.
In M&A News:
Philip Morris and Altria are in merger talks, described as a merger of equals.
What About The Asian And European Markets?
Major Asian markets were mostly higher overnight. Japan (Nikkei 225) up 0.96%, Shanghai up 1.35%, Hong Kong (Hang Seng) down 0.06%.
Major European markets were mixed. German (DAX) gained 0.62%, France CAC 40 up 0.67%, London FTSE 100 slipped 0.08%.
Market And Sector Dynamics
Markets began the trading day convincingly higher. The Dow gained 140 points, Nasdaq gained 55 points, and the S&P added 16 points. Investors are carrying on hint of optimism around China US trade war for a second day. WTI crude oil is pointing higher, at $54.05/barrel, up 0.75%.
Adding some positive sentiment this morning is news that, Philip Morris and Altria, are in talks to combine both companies, in what they described as a merger of equal. Shares of Altria were higher, after the announcement, while Philip Morris was modestly lower.
A strong 135.1 August Consumer Confidence is also helping stocks to push early in the session. Gold and Silver prices, are also marching higher, in what's regarded as a flight to quality trade.
Stocks turned negative around 11:15 AM.as yields continued decline, taking the market down with it. At the low of the day, the Dow was down 150 points, around 1:00 PM., but bounced off those lows during during the last three hours of trading.
Today's selloff was fairly broad based. Eight of the eleven S&P sectors closed with losses, led by Financials, Energy, Healthcare,Industrials, Consumer Discretionary, Real Estate.
Factors Influencing Today's Market
A hint of optimism regarding US China trade war had stocks rallying early.
Declining and inverted US Bond Yields took control of markets later in the session.
Disappointing quarterly earning results from Smuckers.
Philip Morris and Altria, are in talks to combine, as a merger of equals.
Asian markets were mostly higher overnight.
August read on Consumer Confidence came in a strong 135.1 vs 130 expected.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's session, the major indices were lower, the Dow lost 120.93 points, Nasdaq fell 26.79 points, and the S&P fell 9.22 points. Total NYSE volume traded, a moderate 3.57 billion shares. Declining shares outpaced Advancing shares 1.93:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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