Thursday's Market Recap - Weak October Chicago PMI A Negative For Stock Today.
What is The Premarket Telling Us?
7:00 AM.
Futures are moderately lower at this hour. Dow futures down 75 points, Nasdaq futures down 13 points, and the S&P futures down down 8.5 points. Overnight news out of China, suggest the phase 1 trade deal may be in jeopardy, as China seeks to have all US tariffs removed, before signing any deal.
On The Bond Desk:
The US 10 Year Bond Yield at 1.80%, down 0.04%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $54.97/barrel, down 0.16%.
On the Earnings Calendar:
Apple, Facebook, and Starbucks, all handily beat Q3 earnings results after the closing bell yesterday evening.
In M&A News:
Fiat Chrysler, and France's Peugeot have agreed to a merger.
What About The Asian And European Markets?
Major Asian markets were mostly up. Japan (Nikkei 225) gained 0.37%, Shanghai down 0.35%, Hong Kong (Hang Seng) rose 0.90%.
Major European markets ended their session lower. German (DAX) down 0.34%, France CAC 40 up 0.62%, London FTSE 100 down 1.12%.
Market And Sector Dynamics
Stock began the trading session modestly lower. The Dow lost 44 points, Nasdaq lost 10 points, and S&P lost 3 points. WTI Crude Oil price is mostly unchanged at $54.41/barrel. Worry that the 'so called' US China phase 1 deal may be in jeopardy because China wants all tariffs removed before any deal can be signed.
A strong Q3 earnings performance from Apple, Facebook, and Starbucks remains a positive sentiment for markets today.
Markets sank even lower, after release of a weaker than expected October Chicago PMI read, that came in at 43.20 vs 48.0 expected, and the 47.1 in September, the lowest in four years, and could be attributable primarily, to the GM strike. By 10:00 AM, the Dow fell 235 points, the low of the day.
Markets remained at that lower level for most of session, until a surprising rebound half an hour before the close of trading.
Today's selloff was decidedly negative with nine of the eleven S&P sectors ending in negative territory, led by Industrials, Basic Materials, Financials, Energy, Consumer Discretionary, Real Estate, and Consumer Staples. Utilities, and Communication Services.
Factors Influencing Today's Market
Cancellation of Asia Pacific Conference in Chile, leads to uncertainty about the signing of the Phase 1 US China trade deal.
Strong Q3 Earning results from Apple, Facebook, and Facebook was a positive for stocks today.
Fiat Chrysler in talks to buy France's Peugeot.
Weaker than expected 43.2 read on Chicago October PMI had severely negative impact on stocks.
Asian markets were mostly higher, while Europe was lower.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading all the major indices were lower. The Dow sank 140.46 points, Nasdaq down 11.62 points, and the S&P rose 9.21 points. Total NYSE volume traded, a moderate 4.16 billion shares. Declining shares outpaced Advancing shares by 1.62:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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