Wednesday's Market Recap - Stocks Fall As Fed Cut Rates 25 Basis Points.
What is The Premarket Telling Us?
7:00 AM.
Futures are moderately lower at this hour. Dow futures are down 29 points, Nasdaq futures down 13 points, and the S&P down 4 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.81%, down 0.03%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $58.89/barrel, down 0.76%.
On the Earnings Calendar:
FedX reported quarterly earning after the close yesterday. The company badly missed analysts earnings and revenue expectations, and lowered guidance for the rest of the year. The CEO blamed, the global economic slowdown, caused by US China trade tariffs.
Adobe reported solid quarterly results.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) down 0.18%, Shanghai up 0.25%, Hong Kong (Hang Seng) down 0.13%.
Major European markets closed modestly higher. German (DAX) up 0.14%, France CAC 40 up 0.09%, London FTSE 100 down 0.09%.
Market And Sector Dynamics
Markets opened the moderately lower. The Dow sank 53 points, Nasdaq fell 15 points, and the S&P lost 7 points. Today the markets are expecting a 25 basis points rate cut by the Fed, and that should be positive for investor. Investor will also be hoping that Fed Chair Powell, will strike a sufficiently more dovish, than hawkish stance.
Disappointing quarterly earnings from FedX, a proxy for measuring global economic growth is weighed on market today. Geopolitical tension, is also a concern, as the Administration announced this morning, that they have placed new round of sanction on Iran, due to the drone attack on the Saudi refining facility.
Stocks traded in a narrow range for most of the session, but fell off a cliff, shortly after the Fed's interest rate cut, just after 2:00 PM., with the Dow down 211 points at the low. Fortunately, returned to positive territory shortly before the closing of trading.
Today's session was fairly balanced, with six of the eleven S&P sectors ending with modest gains, led by Utilities, Financials, and Energy, and Real Estate led the way lower.
Factors Influencing Today's Market
The Fed/FOMC, as expected, cut interest rates by 25 basis points.
The Trump Administration announced additional tariffs on Iran, responding to the drone attack in Saudi Arabia.
FedX disappoint the markets, as its quarterly result badly missed analyst expectations.
This week's EIA Petroleum Status Report shows crude oil inventories rose 1.1 million barrels, to 417.1 million barrels.
Market Close Volume Traded And Advance Decline Ratio
Today the markets ended mixed. The Dow gained 36.28 points, Nasdaq fell 8.62 points, and the S&P added 1.03 point. Total NYSE volume traded, a mild 3.48 billion shares. Declining shares outpaced Advancing shares by 1.16:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments