Wednesday's Market Recap - Investors Exercised Caution Today As The Coronavirus Infection Grows.
What is The Premarket Telling Us?
7:00 AM.
Stocks futures are moderately positive, more than two and half hours before the opening bell. Dow futures are up 94 points, Nasdaq futures up 62 points, S&P futures up 13 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.77%, down 0.07%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $57.94/barrel, down 0.75%.
On the Earnings Calendar:
Netflix reported Q4 earning results last evening. The company beat earnings and revenue estimates, but guidance was short of expectations.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets recovered from the prior day's selloff. Japan (Nikkei 225) up 0.70%, Shanghai 0.28%, Hong Kong (Hang Seng) gained 1.21%.
Major European markets were lower in their session. German (DAX) down 0.30%, France CAC 40 down 0.58%, London FTSE 100 fell 0.51%.
Market And Sector Dynamics
Markets opened solidly higher. The Dow up 56 points, Nasdaq up 37 points, S&P rose 10 points. WTI Crude Oil price off to a lower start at $57.43/barrel, down 1.63%.
Ten minutes after the open stocks pushed higher with the Dow up 99 points, Nasdaq up 59 points, and the S&P up 14 points. Both the Nasdaq and S&P at new record highs. Stocks remained elevated for most of the morning, before turning decidedly lower shortly before noon, as more information is on the coronavirus, and the efforts to contain it become more known.
Shares of international hotel chains, and the US airline industry are under pressure, as investors worry about the potential impact this virus could have on their operations, if it was to become an epidemic. Stock did rebound from the midday lows during the afternoon session, but markets again lost momentum again into the close.
Despite the negative tone in today's session, market breath was fairly balanced. Six of the eleven S&P sectors closed with modest gains, led by Technology, Utilities, Financials, Healthcare, and Consumer Staples. Energy, Industrials, and Basic Materials was a drag on markets.
Factors Influencing Today's Market
Investor expressed some concern about the coronavirus and it's potential impact on US corporations, primarily the airline and hotel industries.
Netflix Q4 Earings beat analyst expectations, but guidance was weaker than expected, sending shares lower.
WTI Crude Oil price fell in the session, closing at $56.74/barrel, down 2.74%.
US 10 Year Bond Yield closed lower at 1.769%, down 0.28%.
Asian markets traded higher overnight.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's trading the Dow slipped 9.77 points, Nasdaq rose 12.96 points, and the S&P gained a fraction 0.96 point. Total NYSE volume traded, a light 3.71 billion shares. Advancing shares and Declining shares were even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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