Monday's Market Recap - Stocks Mildly Lower As Investors Have Second Thoughts On US China Deal.
What is The Premarket Telling Us?
7:45 AM.
Stock futures are moderately lower, ahead of the start of trading. Dow futures are down 84 points, Nasdaq futures down 30 points. Asian markets were mostly higher overnight, picking up from our gains last Friday. Across the pond, we are also getting some optimistic news regarding Brexit, as Britain and Ireland may have come to an agreement on the Irish backstop.
On The Bond Desk:
The US 10 Year Bond Yield at 1.75%, up 0.09% or nine basis points.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.25
Crude Oil:
WTI crude oil futures $53.56/barrel, down 2.08%.
On the Earnings Calendar:
Major Banks begin reporting 3rd Qtr. Earnings results tomorrow.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) rose 1.87%, Shanghai rose 1.15%, Hong Kong (Hang Seng) slipped 0.07%.
Major European markets closed their session higher. German (DAX) fell 0.20%, France CAC 40 down 0.40%, London FTSE 100 down 0.46%.
Market And Sector Dynamics
Markets opened flat to mildly lower, with the Dow down 13 points, Nasdaq down 2 points, and the S&P down 2 points. WTI Crude Oil prices off to a negative starts, down 2.32%, at $53.43/barrel.
Stocks trended even lower after the opening. The Dow falling around 50 points, before pushing higher, and holding on in a narrow range, the Dow up 30 point above neutral, for most of the morning, and early afternoon session. Stocks turned lower late in the afternoon, to finish in negative territory.
Today, investor were mostly concerned about the "so called" deal struck between US and China on Friday, essentially second guessing the extent of the deal, perhaps concluding that that not much had changed as a result of this deal.
The selloff was modest at best, with nine of the eleven S&P sectors ending the day with slight losses, led by Basic Materials, Utilities, Consumer Staples, Industrials, Communication Services, Energy, and Financials.
Factors Influencing Today's Market
Investors seems to be having second thought about US China Phase 1 deal, as news from China surrogates, suggest the deal is still not sealed.
A degree of optimism regarding a possible breakthrough in Brexit negotiations.
US 10 Year Bond Yield closed the day at 1.715%, down 1.09%.
WTI Crude Oil closed at $53.59/barrel, down 2.03%.
Market Close Volume Traded And Advance Decline Ratio
At the end of Monday's trading stocks were modestly lower. The Dow lost 29.23 points, Nasdaq fell 8.39 points, and the S&P lost 4.12 points. Total NYSE volume traded, a light 2.59 billion shares. Declining shares outpaced Advancing shares by 1.21:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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