Tuesday's Market Recap - A Just Right CPI And Strong Q4 Earnings From JPMorgan And Citibank.
What is The Premarket Telling Us?
7:30 AM.
US stock index futures are basically flat at this hour. Dow futures up 17 points, Nasdaq futures down 6 points, and the S&P futures down 1 point. The fourth quarter earnings season kicks off this morning with major banks, JPMorgan, CitiBank, and Wells Fargo reporting before the opening bell.
On The Bond Desk:
The US 10 Year Bond Yield at 1.85%, up 0.03% or 3 basis points.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $58.43/barrel, up 0.60%.
On the Earnings Calendar:
JPMorgan, and CitiGroup reported strong fourth quarter earnings results. Well Fargo Bank disappointed investors, as the company missed earnings expectation.
In M&A News:
Visa announced it is buying fintech company, Plaid, in a deal worth $5.30 Billion.
What About The Asian And European Markets?
Major Asian markets ende mixed. Japan (Nikkei 225) rose 0.73%, Shanghai down 0.28%, Hong Kong (Hang Seng) lost 0.24%.
Major European markets closed with slight gains. German (DAX) up 0.04%, France CAC 40 up 0.08%, London FTSE 100 up 0.06%.
Market And Sector Dynamics
Stock open the today's trading session with mild losses. The Dow gave up 14 points, Nasdaq fell 3 points, and the S&P fell 2 points. WTI Crude Oil price is modestly higher, at $58.48/barrel, up 0.69%. After yesterday's record closing high for the Nasdaq and the S&P, investor seem inclined to take a breather this morning. Strong earning results from JPMorgan, and CitiBank are pushing shares of these companies, and financial sector higher.
CPI inflation data released today rose 0.2% in line with consensus estimates. CPI estimates minus food and energy rose 0.1% vs 0.2% expected. Investors saw this data, as just what the doctor ordered, to keep the fed on hold.
The Dow climbed higher at mid-morning buoyed by solid earnings by JPMorgan, and CitBank. At 2:00 PM, the Dow was up 145 points, the high of the day. Shortly after 2:00 PM, markets gave up all its gains, and retreated to the flat line, after news broke that the US China deal, expected to be signed tomorrow, could be at risk, as some tariffs will remain.
Six of the eleven S&P sectors closed today's session with moderate losses, led by Technology, Real Estate, Basic Materials, Communication Services, Financials, and Consumer Discretionary.
Healthcare and Utilities were traded higher in the session.
Factors Influencing Today's Market
Strong fourth quarter earning from JPMorgan, and Citibank. Well Fargo missed earnings expectation.
CPI came in slightly less than expected, but enough to keep the Fed on the sidelines.
Visa to acquire fintech company Plaid for $5.3 billion.
Asian markets were mostly flat, but European markets traded higher.
WTI Crude Oil close the day at $58.08/barrel, unchanged from yesterday's close.
US 10 Year Bond Yield closed at 1.813%, down 1.89%.
Market Close Volume Traded And Advance Decline Ratio
Stock close mixed today, with the Dow up 32.62 points, Nasdaq fell 22.60 points, and the S&P lost 4.98 points. Total NYSE volume traded, a light 3.71 billion shares. Advancing shares outpaced Declining shares by 1.34:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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