Monday's Market Recap - Investors Rotating From Big Tech Companies To Value Plays.
What is The Premarket Telling Us?
7:00 AM.
Stock futures area modestly positive this morning, indicating markets will be higher at the open. Dow futures up 54 points, Nasdaq up 17 futures points, and S&P futures up 8 points. Asian markets closed mostly higher overnight. Crude oil prices are soaring, as Saudi Arabia has restated it commitment to abide by its planned production cuts.
On The Bond Desk:
The US 10 Year Bond Yield at 1.55%, down 0.01%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.23
Crude Oil:
WTI crude oil futures $56.92/barrel, up 0.71%.
On the Earnings Calendar:
None
In M&A News:
Activist Hedge Fund, Elliot Management has taken a $3.2 billion stake in AT&T. Their goal is to make the necessary changes will increase AT&T stock price to $60.00/share, by 2021.
What About The Asian And European Markets?
Major Asian markets were mostly up. Japan (Nikkei 225) gained 0.56%, Shanghai up 0.84%, Hong Kong (Hang Seng) slipped 0.04%.
Major European markets ended their day mixed. German (DAX) up 0.28%, France CAC 40 down 0.27%, London FTSE 100 lost 0.64%.
Market And Sector Dynamics
Stocks opened modestly higher, with the Dow up 24 points, Nasdaq rose 21 points, and the S&P was up 7 points. A perceived stabilization of US Bond Yields, rising crude oil prices, and Elliot's taking a position in AT&T are all positive for the markets early in the session.
Stocks were solidly high for most of the morning session, with the Dow reaching a high of around 105 points. Stock turned lower in the early afternoon, with the Dow down 35 points, just before 2:00 PM., as investors seems to be rotating out of technology, semiconductor, and other outperforming stocks, and into more value plays and small cap companies.
Also affecting markets is continued uncertainty surrounding US China trade talks, even as the administration suggests talks are ongoing.
Today's session was mostly balanced. Six of the eleven S&P sectors closed lower in the session, led by Healthcare, Real Estate, Technology, Utilities, and Basic Materials. Energy, Financials, Consumer Discretionary, Industrials, and Communication Services, were ended higher.
Factors Influencing Today's Market
Lingering uncertainty/fear around US China trade negotiations is still a background issue in the markets.
Activist Hedge Fund, Elliot takes a $3.2 billion stake in AT&T, and calling for a restructuring of the company's assets.
US 10 Year Bond Yield closed at 1.647%, up 5.56%.
WTI Crude Oil closed at $57.85/barrel, at 2.35%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, the major indices were mixed.The Dow gained 38.05 points, Nasdaq fell 15.64 points, S&P slipped 0.28%. Total NYSE volume traded, a moderate 4.01 billion shares. Advancing shares outpaced Declining shares by 1.60:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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