Wednesday's Market Recap - Investor Exercise Caution As Coronavirus Spreads In China.
What is The Premarket Telling Us?
Two and a half hours before the opening bell, US stock futures are modestly positive. Dow futures up 63 points, Nasdaq futures up 38 points, and S&P futures up 9 points. Coronavirus remains a concern for investors, Starbucks closes 2000 of its stores in China, and many US and other airlines cut the number of flight into China. Goldman Sachs holds its first Investor Conference today. The Federal Reserve will announce its interest rates decision later this afternoon. The market are expecting no change in interest rates.
On The Bond Desk:
The US 10 Year Bond Yield at 1.64%, down 0.04%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.30
Crude Oil:
WTI crude oil futures $53.84/barrel, up 0.67%.
On the Earnings Calendar:
Boeing reports it first quarterly net loss, since 1997, due to the grounding of the 737-Max.
Starbucks reports better than expected Q4 Earnings.
Apple announced blowout Q4 Earnings after the close yesterday evening.
Facebook report Q4 Earning after the bell today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up 0.71%, Shanghai closed, Hong Kong (Hang Seng) down 2.82%.,
Major European markets traded higher. German (DAX) up 0.16%, France CAC 40 up 0.49%, London FTSE 100 up 0.04%.
Market And Sector Dynamics
Stocks opened up triple digits, with the Dow up 185 points, Nasdaq fell 49 points, and S&P was up 14.73 points. Markets did turn lower shortly after the open, but regained momentum, in the late morning, and early afternoon session, is investor tried to grapple the potential impact of the coronavirus on China's economy, and by default the rest of the world.
Despite a blowout earning report from Apple, today's earnings picture was a mixed one. The Federal Reserve in its afternoon release, has left interest rate at existing levels, but will continue its activities in the REPO market.
Markets turned lower an hour before the close, as investor took profits, in the absence of any convincing catalyst to push stocks higher.
Today's selloff was fairly balanced, with seven of the eleven S&P sectors ending the day with modest losses, led by Energy, Real Estate, Consumer Staples, Communication Services, Healthcare, and Financials.
Factors Influencing Today's Market
Fear and uncertainty regarding the the potential impact of the coronovirus on the global economy.
Some airlines are cutting the number of flights into China.
Starbucks closes 2000 of its stores mostly in Wuhan, China and other areas affected by the virus.
Apple announced a strong Q4 Earnings result, sending share of the company higher.
Boeing reported a net loss of $19 Billion, its first quarterly net loss in more than two decades.
McDonald beat Q4 Earnings results, including stellar same store sales results.
WTI Crude fell modestly today, closing at $53.13/barrel, down 0.65%.
US 10 Year Bond Yield closed at 1.587%, down 3.76%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended market were mostly unchanged. The Dow added 11.62 points, Nasdaq gained 5.48 point, and S&P slipped 2.84 point. Total NYSE volume traded, a light 3.61 billion shares. Advancing and Declining shares were mostly even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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