Tuesday's Market Recap - Stock Finished Higher On Optimism Saudi Oil Will Be Back On Line Soon.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly lower. The Dow futures fell 46 points, Nasdaq futures down 15 points, and the S&P fell 3.50 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.84%, down 0.06% or six basis points.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $61.95/barrel, down 1.51%.
On the Earnings Calendar:
FedX reports after the closing bell this evening.
In M&A News:
WeWork postpones it IPO over concerns and push back about the companies governance, and general lack of interest by potential investors.
FedX reports after the closing bell this evening.
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) up 0.06%, Shanghai down 1.74%, Hong Kong (Hang Seng) fell 1.23%.
Major European markets. German (DAX) down 0.06%, France CAC 40 gained 0.24%, London FTSE 100 slipped 0.01%.
Market And Sector Dynamics
Stocks opened today's trading day moderately negative. The Dow fell 63 points, Nasdaq lost 0.88 point, and the S&P lost 1.85 points. On the docket today, is continues fallout from the drone attack on Saudi Oil facilities, and any reaction from the Trump administration, as they try to ascertain who is responsible for the attack.
The Fed/FOMC also began its two day, September meeting today, and is expected to announce a quarter point rate cut, after their deliberations tomorrow. Investors are cautious, ahead of that announcement. In the last few days, US Economic data has come in better than expected, and the US 10 Year Bond yields have stabilized, and have actually rebound, just short of 2% level.
Investor worry that this better than expected economic performance could muddy the water for the Fed.
Stocks gradually rebounded during the session, turning positive shortly before the close, as the Saudi's announced that they had already replaced a third of the lost production, back on line, and would have the rest done by the end of September. Additionally, it also appear that the President may not be interested in military action in Iran.
Although the market were mostly lower for the day, eight of the eleven S&P sectors closed the day with modest gains, led by Real Estate, Utilities, Basic Materials, Consumer Discretionary, and Consumer Staples.
Factors Influencing Today's Market
Stock rebound after Saudi announced capability to replace lost capacity by end of September.
The President seems to be discounting military action against Iran.
WeWork postpones its IPO launch due to lack of interest from potential investors.
Asian and European markets were mostly lower in their sessions.
The Fed/FOMC began its September two day meeting today. Investors expecting 0.25% rate cut.
WTI Crude Oil gave up a chunk of yesterday's gains, closing at $59.34/barrel, down 5.66%.
US 10 Year Bond Yield closed at 1.810%, down 1.79%.
Market Close Volume Traded And Advance Decline Ratio
At the end of the day, the major indices were modestly higher. The Dow gained 33.98 points, Nasdaq rose 32.47 points, and the S&P added 7.74 points. Total NYSE volume traded, a light 3.71 billion shares. Advancing shares outpaced Declining shares by 1.13:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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