Tuesday's Market Recap - Boeing And Coronavirus Sent Stocks Reeling Today.
What is The Premarket Telling Us?
7:00 AM.
It's Tuesday, the first trading day of this week, after yesterday's celebration of the Martin Luther King Holiday. Stock futures are indicating lower. Dow futures are down 63 points, Nasdaq futures down 39 points, and S&P futures down 11 points. Markets are responding to a credit downgrade for the Hong Kong economy, and a potential flu-like coronavirus outbreak in a region of China. Airports across the globe are screening travelers coming from that region. So far 6 persons have died, and nearly 300 people have been infected with the virus.
Boeing reportedly in talks with lenders to borrow $10 Billion.
On The Bond Desk:
The US 10 Year Bond Yield 1.84%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.30
Crude Oil:
WTI crude oil futures $57.77/barrel, down 1.38%.
On the Earnings Calendar:
Netflix reports Q4 Earnings results after the close of trading today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets decidedly lower on a downgrade of Hong Kong, and the Coronavirus story. Japan (Nikkei 225) down 0.91%, Shanghai down 1.41%, Hong Kong (Hang Seng) down 2.81%.
Major European markets were mostly lower today. German (DAX) added 0.05%, France CAC 40 down 0.54%, London FTSE 100 fell 0.53%.
Market And Sector Dynamics
Stocks opened moderately lower. The Dow sank 66 points, Nasdaq fell 27 points, and S&P lost 10 points. WTI Crude Oil is also trading lower at $58.14/barrel, down 0.68%. Boeing is weighing negatively on markets this morning, as the company is reported to be in talk with major banks to borrow $10.00 billion. The coronavirus story in China also depresses Asian markets overnight, putting additional pressure on our markets as well.
The market pulled back even further thirty minutes after the open, but did recover somewhat, during the late morning and early afternoon session, and hovered just below neutral.
The market sold off hard just before 2:00 PM, on two important news stories. One, that the FDA may not approve the Boeing 737 MAX, until June, and second the CDC has confirmed 1 case of the coronavirus in Washington State. This pushed markets to the low of the day, with the Dow down around 186 points, before recover just a fraction of those losses shortly before the close.
Seven of the eleven S&P sectors closed the session with losses, led by Energy, Industrials, Materials, Financials, Consumer Discretionary. Real Estate, Utilities, and Consumer Staples traded higher.
Factors Influencing Today's Market
The coronavirus outbreak in China weighed negatively on stocks today.
The CDC confirms one case of the coronavirus in Washington State, in the US.
Boeing is in talks to borrow $10 billion from major banks. It was also reported that the FDA may not approve the Boeing 737 Max before June. Sending shares of the company lower.
WTI Crude Oil price closed at $58.34/barrel, down 0.66%.
US 10 Year Bond Yield ended the day at 1.774%,down 2.70%.
Market Close Volume Traded And Advance Decline Ratio
When the session ended, the Dow fell 152.06 points, Nasdaq lost 18.14 points, and the S&P was down 8.83 points. Total NYSE volume traded, a moderate 4.19 billion shares. Declining shares outpaced Advancing shares by 1.54:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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