Tuesday's Market Recap - Stocks Down On New US China Tariffs, And Weak US ISM Manufacturing Data
What is The Premarket Telling Us?
Stock futures are down this morning to start the month of September. Dow futures down 226 points, Nasdaq futures down 64 points, and S&P futures down 22 points. On tap this morning, new tariffs which took place September 1st.
On The Bond Desk:
The US 10 Year Bond Yield at 1.51%, down 0.01%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.20
Crude Oil:
WTI crude oil futures $53.65/barrel, down 2.63%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mostly mixed. Japan (Nikkei 225) down 0.02%, Shanghai up 0.21%, Hong Kong (Hang Seng) down 0.39%
Major European markets. German (DAX) down 0.36%, France CAC 40 down 0.49%, London FTSE 100 down 0.19%.
Market And Sector Dynamics
Stock opened the first trading day of September with investors worrying about new US China tariffs, which became effective on September 1st. The Dow dived 247 points, Nasdaq fell 63 points, and the S&P lost 21 points. Today's release of August ISM manufacturing index came in at 49.1, dipping into negative territory for the first time in three years, confirming manufacturing is slowing in the US, and following that of other developed countries, Germany, Europe, Britain, and also China.
At the low, the Dow fell nearly 420 points early in the session, and remained in negative territory for the rest of the session. Stock bounced of the morning lows late in the final two hours of trading.
Today's selloff was fairly broad based, with eleven S&P sectors ending with losses, led by Industrials, Technology, Financials, Basic Materials, Healthcare, Energy, and Consumer Discretionary. Utilities, Real Estate, and Consumer Staples out-performed to the upside.
Factors Influencing Today's Market
New tariffs in the US China trade war took effect on September 1st. Investors are worried.
August ISM Manufacturing Data came the lowest in 3 years, at 49.1. A number below 50 is considered contraction.
August PMI came in at 50.3 vs 49.90, a near 10 year low.
US 10 Year Bond Yield closed the day at 1.496%, 0.01%.
WTI Crude Oil price closed at $53.86/barrel, down 1.46%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, all the indices were lower. The Dow sank 285.26 points, Nasdaq fell 88.72 points, and the S&P lost 20.19 points. Total NYSE volume traded, a light 3.44 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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