Tuesday's Market Recap - Stocks Sold Off Hard After Weak ISM Manufacturing Index.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are again modestly higher, ahead of the start of trading. Dow futures were up 60 points, Nasdaq futures up 24 points, and S&P futures up 7 points.
On The Bond Desk:
The US 10 Year Bond Yield @ 1.671%
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $54.23/barrel,
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mostly up. Japan (Nikkei 225) 0.59%, Shanghai down 0.92%, Hong Kong (Hang Seng) 0.53%.
Major European markets were lower. German (DAX) down 1.32%, France CAC 40 down 1.41%, London FTSE 100 down 0.65%.
Market And Sector Dynamics
Stocks opened the trading session moderately higher, with the Dow up 60 points, Nasdaq up 31 points, and the S&P up 9 points. WTI crude oil prices were higher early at $54.68/barrel, up 1.13%.
The bias remained to the upside with the Dow surging 124 points, a few minutes after the open.
After release of a very negative ISM Manufacturing data, 47.8 vs 50 expected, and lower than the 49.1 for August. Showing manufacturing contracting two months in a row. Markets sold off on this news, as investors fear, that if this continued, it could bleed over into consumer confidence, and increase the likelihood of a recession. At the low of the day around 2:00 PM, the Dow was down 347 points.
The selloff was very broad based, and market tone was negative but orderly. All eleven S&P sectors ended the session lower, led by Industrials, Energy, Basic Materials, Financials, Real Estate, Communication Services, Healthcare, Technology, and Consumer Discretionary.
Factors Influencing Today's Market
September ISM Manufacturing Index was negative for the second month in a row, and sending markets lower, on fear of recession.
September PMI Manufacturing Index came in at 51.1 holding on above contraction territory.
Impeachment Inquiry dominating the new cycle.
Major European markets were lower in their session.
WTI Crude Oil prices closed at $53.62/barrel, down 0.83%.
The US 10 Year Bond Yield ended the day at 1.635%, down 1.98%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the markets were solidly negative. The Dow tanked 343.79 points, Nasdaq fell 90.65 points, and the S&P fell 36.49 points. Total NYSE volume traded, a modest 3.56 billion shares. Declining shares outpaced Advancing shares by 2.88:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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