Monday's Market Recap - 5 US Cases Of Coronavirus Keeps Markets Nervous.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are severely depressed this morning, ahead of the start of trading. Dow futures are down 401 points, Nasdaq futures down 163 points, and S&P futures down 46 points.Global markets are under pressure as China tries to control the outbreak of the Coronavirus, in Wuhan, from spreading in a major way to other Chinese cities. He in the US, a fifth case has be identified, adding to fears of a potential outbreak.
On The Bond Desk:
The US 10 Year Bond Yield at 1.68%, down 0.06%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $52.57/barrel, down 2.99%.
On the Earnings Calendar:
Whirlpool reports Q4 Earnings after the closing bell this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded lower overnight. Japan (Nikkei 225) fell 2.03%, Shanghai down closed, Hong Kong (Hang Seng) closed.
Major European markets were also negative. German (DAX) down 2.74%, France CAC 40 2.68%, London FTSE 100 down 2.29%.
Market And Sector Dynamics
Stocks opened solidly down. The Dow tanked 440 points, Nasdaq sank 192 points, and S&P fell 52 points. WTI Crude Oil price continues to fall, currently at $53.07/barrel, down 2.07%. The number of US cases of the coronavirus, has now risen to five, and that is giving investors pause.
December New Home Sales (Signed contracts for new homes) came in less than expected at 694K vs 728K estimated.
Stocks remained severely depressed for the entire session. At the low of the day, the Dow was down 549 points, shortly before noon, as investors worry about a potential worsening of the coronavirus outbreak. What if the outbreak become prolonged, taking down China's economy, and by default, the slowing global economic growth.
Today's selloff was broad based, and market tone was very negative but orderly. All eleven S&P sectors closed the day with solid losses, led by Energy, Technology, Basic Materials, Industrials, Communication Services, Financials, Consumer Discretionary, Real Estate, Consumer Staples, and Utilities.
Factors Influencing Today's Market
Markets tanked today as the fifth case of the coronavirus is identified in the US.
US 10 Year Bond Yield closed at 1.612%, down 1.06%.
WTI Crude Oil price closed at $52.95/barrel, up 0.65%.
Both Asian and European markets closed with losses today.
December New Home Sales came in lower than expected.
Market Close Volume Traded And Advance Decline Ratio
The markets tanked in today's trading session. The Dow sank 453.93 points, Nasdaq dived 175.60 points, and the S&P lost 51.84 points. Total NYSE volume traded, a modest 3.88 billion shares. Declining shares outpaced Advancing shares by 3.77:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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