Tuesday's Market Recap - Stocks Tank On Trump's Suggestion That China Deal Could Be Delayed
What is The Premarket Telling Us?
7:00 AM.
Futures are modestly lower at this hour, after President Trump, who is in London for meeting with NATO, suggests that the Phase 1 deal with China could extend beyond the 2020 election. Dow futures are down 92 points, Nasdaq futures down 28 points, and S&P futures down 8 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.84%, up 0.06% or 6 basis points.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $56.99/barrel, up 1.03%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded mixed overnight. Japan (Nikkei 225) fell 0.64%, Shanghai rose 0.31%, Hong Kong (Hang Seng) gave up 0.20%.
Major European markets were mostly lower in their session. German (DAX) up 0.19%, France CAC 40 down 1.03%, London FTSE 100 fell 1.75%.
Market And Sector Dynamics
Stocks opened the trading day significantly lower. The Dow fell 300 points, Nasdaq fell 95 points, and the S&P fell 32 points. Comments from the President that the US China deal may not come until after the November 2020 elections has spooked the markets. Also the President has additionally placed new tariffs on French luxury imports, such has Wines, Cheeses, Handbags, and other items.
Markets remained lower for the entire trading session, with the VIX (measure of market volatility),
spiking from around 11 points, to more than 16. At the low of the session, in the morning, the Dow was down 457 points. The markets gradually rebounded during the afternoon session, but was never able to get to positive territory.
Today's selloff was broad based, with nine of the eleven S&P sectors closed the session with modest losses, led by Energy, Financials, Industrials, Consumer Discretionary, Technology, and Basic Materials. Real Estate and Utilities enjoyed modest gains.
Factors Influencing Today's Market
Markets tumbled on President Trump's comments that a China trade deal could be delayed until after the US 2020 Elections.
President Trump also says he is considering placing tariffs on French luxury good.
Asian and European markets were mostly higher during their sessions.
WTI Crude Oil prices closed modest up today at $56.10/barrel, up 0.25%.
The US 10 Year Bond lost significant ground today, closing at 1.717%, down 5.76%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, the Dow fell 280.23 points, Nasdaq fell 47.34 points, the S&P fell 20.67 points. Total NYSE volume traded, a modest 3.67 billion shares, with Declining shares outpacing Advancing shares better than 1.59:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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