Friday's Market Recap - US Declares Public Health Emergency For Coronavirus. Stocks Tank.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are lower. Dow futures down 162 points, Nasdaq futures down 54 points, and the S&P futures down 18 points. Markets in China remain close because of the coronavirous outbreak.
On The Bond Desk:
The US 10 Year Bond Yield at 1.56%, down 0.03%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $52.43/barrel, up 0.56%
On the Earnings Calendar:
Amazon reported blowout Q4 Earnings.
IBM reported better than expected earnings. CEO Gennie Rometty, will step down in April.
Visa reported a mixed Q4 Earnings. The company beat earnings, but revenues fell just short. The company also announced a $7.5 Billion share buyback program.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) rose 0.99%, Shanghai closed, Hong Kong (Hang Seng) down 0.52%.
Major European markets fell more than on percent each. German (DAX) down 1.33%, France CAC 40 down 1.11%, London FTSE 100 fell 1.30%.
Market And Sector Dynamics
Markets began the session significantly lower. The Dow fell 150 points, Nasdaq rose 20 points, and S&P fell 6 points. Yield compressio is continuing, as the US 10 Year Bond Yield has ticked lower again at 1.548%. WTI Crude Oil is also started the day lower, currently sitting at $51.80/barrel, down 0.69%.
Market remained under extreme pressure after the open, falling steadily as the session progressed. By noon the Dow was down more than 400 points. Not even strong earnings from Amazon, and IBM could hold off the bears in today's session. Visa also reported mixed earning, but Caterpillar disappointed investors.
Earlier in the morning many airlines decided to cut service to cities in China, and later in the afternoon the US Administration, declared a coronavirus public health emergency, and a 14 day guarantee for citizens and US Residents returning from China. Markets gaped lower after that news broke, handing the bears full control of the remainder of the trading day.
Today's selloff was broad based, deep and orderly, with ten of the eleven S&P sectors closing with losses, led by Energy, Technology, Industrials, Basic Materials, Financials, Healthcare, Real Estate, Communication Services, and Consumer Staples.
Factors Influencing Today's Market
US Administration declares a coronavirus public health emergency, that sent markets lower.
Strong Q4 Earnings from Amazon sending shares of the company solidly higher.
WTI Crude Oil closed at $51.56/barrel, down 1.11%.
This week's Baker Hughes US Oil Rig count fell 1 rig to 675 total.
US 10 Year Bond Yield closed at 1.505%, down 4.76%.
Major European market were solidly lower today, as the UK exits the European Union.
Market Close Volume Traded And Advance Decline Ratio
Stocks tumbled today as fear of the spreading coronavirus, spooked investors. The Dow tanked 603.41 points, Nasdaq dived 148 points, and the S&P fell 58.14 points. Total NYSE volume traded, a moderate 4.59 billion shares. Declining shares outpaced Advancing shares nearly 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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