Tuesday's Market Recap - Stocks Tank On Escalation Of US China Tensions Two Days Before Talks.
What is The Premarket Telling Us?
7:40 AM.
A sea of red describes US stock futures this morning. Dow futures are down 168 points, Nasdaq futures down 42 points, and S&P futures down 17 points. The US Department of Commerce, has blacklisted a new set of products that the US won't sell China, ahead of trade talks on Thursday. The markets see this as a new escalation in these talks.
On The Bond Desk:
The US 10 Year Bond Yield 1.56%, up 0.04%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $52.00/barrel, 1.42%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian market were up. Japan (Nikkei 225) up 0.99%, Shanghai up 0.29%, Hong Kong (Hang Seng) up 0.28%.
Major European markets traded lower today. German (DAX) fell 1.05%, France CAC 40 1.18%, London FTSE 100 down 0.76%.
Market And Sector Dynamics
Stocks opened the trading day significantly lower. The Dow lost 252 points, Nasdaq fell 64 points, and the S&P fell 25 points.
Stocks remained well into negative territory for the entire session, as a series of releases from the Administration, indicating an escalation of the US China trade war, even as the two groups are scheduled to meet in Washington on Thursday.
This morning, the Administration announced a blacklist of China companies who would not be able to buy US technology, due to the Chinese government's human right violation of it's muslim population. (A strange notion for the current Adminstration). Later in the day we got word that the Administration has put Visa restrictions on certain Chinese officials.
Market did rebound from the morning low in the afternoon session, but that rally failed, sending stock back to low, shortly before the close.
Today's selloff was broad based and deep, with all eleven S&P sectors closing in negative territory, led by Financials, Healthcare, Technology, Energy, Basic Materials, Industrials, Communication Services, Consumer Discretionary, and Utilities.
Factors Influencing Today's Market
The US Administration blacklisted a number of US technology giants from doing business with China, and has also announced visa restrictions on certain Chinese officials.
The House impeachment inquiry continues in the background.
Major Asian markets closed higher overnight, while European markets were lower.
Crude oil traded modestly lower today. WTI Crude Oil ended the day at $52.63/barrel, down 0.23%.
US 10 Year Bond Yield closed the day at 1.532%,down 2.11%.
Market Close Volume Traded And Advance Decline Ratio
Stocks lost substantial ground today, as investors voted with their feet, as the escalation of US China trade war kicked up another level. The Dow sank 313.98 points, Nasdaq dived 132.52 points, and the S&P fell 45.73 points. Total NYSE volume traded, a light 3.38 billion shares. Declining shares outpaced Advancing shares 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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