Thursday's Market Recap - Stocks Soldoff On Weak Service ISM Data, But Closed Higher.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are modestly higher, with the Dow up 87 points, Nasdaq up 34 points, and the S&P up 11 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.60%, down 0.04% or four basis points.
Euro dollar: 1.09
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $52.51/barrel, down 0.25%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mostly lower. Japan (Nikkei 225) down 2.01%, Shanghai down 0.92%, Hong Kong (Hang Seng) up 0.26%.
Major European markets were mostly lower today. German (DAX) down 2.76%, France CAC 40 up 0.30%, London FTSE 100 down 0.63%.
Market And Sector Dynamics
Stocks opened today's trading session modestly lower. The Dow fell 23 points, Nasdaq was down 8 points, and the S&P was fraction higher 0.89 point. Investor are eagerly awaiting release of the September ISM (Non Manufacturing) report, due out at 10:00 AM to gauge the strength of the consumer down. This is especially important in light of the ISM (Manufacturing) that came out earlier in the week, showing a second month of manufacturing contraction. Crude oil prices have also pulled back in early trading, with WTI crude at $51.70/barrel, down 1.77%.
Once September ISM Non Manufacturing number was released, stock fell precipitously, with the Dow falling to a low of the day at 335 points. The ISM read came in at 52.6 vs 55.30 estimated.. While it was not in contraction territory, it was the lowest since 2016, and investors sold off stocks.
Markets turned around a short while later, after investors believed that the Federal Reserve will come to the rescue, with another rate cut at the next meeting.
The rally was broad based, with all eleven S&P sectors closing with gains, led by Energy, Technology, Real Estate, Healthcare, Communication Services, Consumer Staples, Industrials, Consumer Discretionary, Basic Materials, and Utilities.
Factors Influencing Today's Market
September ISM Non Manufacturing signaled show consumer economy weakening, sent stocks lower.
Stocks recovered on hope that the Federal Reserve will will come to the rescue with a rate cut.
Asian and European markets were mostly lower in their session.
WTI Crude Oil closed at $52.45/barrel, down 0.36%.
US 10 Year Bond Yield close the day at 1.534%, down 4.18%.
Market Close Volume Traded And Advance Decline Ratio
After two days of deep downturns markets closed higher today. The Dow gained 122.42 points, Nasdaq rose 87.02 points, and the S&P rose 23.02 points. Total NYSE volume traded, a modest 3.52 billion shares. Advancing shares outpaced Declining shares by 1.74:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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