Tuesday's Market Recap - Stocks Closed Lower As Apple Warns Coronavirus Will Cut Revenues.
What is The Premarket Telling Us?
US stock futures are triple digit lower, two and half hours before the start of trading. Dow futures are down 181 points, Nasdaq futures down 73 points, and S&P futures down 17 points. Major Asian markets traded decidedly lower, while we slept, as coronavirus continues to spread in China, and a few other countries.
On The Bond Desk:
The US 10 Year Bond Yield at 1.59%, down 0.03%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $50.99/barrel, down 2.04%.
On the Earnings Calendar:
Walmart reports a rare quarterly earnings miss.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded solidly lower overnight. Japan (Nikkei 225) down 1.40%, Shanghai up 0.05%, Hong Kong (Hang Seng) down 1.54%.
Major European markets also traded lower. German (DAX) down 0.75%, France CAC 40 down 0.48%, London FTSE 100 down 0.69%.
Market And Sector Dynamics
Markets opened the trading significantly lower, after Apple announced yesterday that will miss its next revenue numbers, due to the coronavirus outbreak in China. The Dow fell 104.71 points, Nasdaq fell 34.35 points, and S&P up 9.39 points.
Today's session was mostly negative, as investors grapple with fallout from the coronavirus in China. We learned today that the head physician of the hospital in Wuhan, the epicenter of the virus outbreak recently died after being infected. Here at home, iPhone giant, Apple, announced that it will miss its revenue projection this quarter, which sent shares of the company lower.
Walmart held its investor day today, during which it announced that its quarterly earnings missed analyst estimates, due to a weaker than expected holiday sales. Shares of the company ended the day higher, despite the company's failure to meet its earnings.
At the low of the day, around noon, the Dow down 289 points, but recovered a fraction of those losses during the afternoon session.
The selloff was fairly broad based with eight of the eleven S&P sectors closing the day with losses, led by Financials, Energy, Industrials, Consumer Staples, Healthcare, Technology, Basic Materials, Real Estate. Utilities, Communication Services, and Consumer Discretionary closed higher.
Factors Influencing Today's Market
Apple warned it will miss its quarterly revenue expectation this quarter due to the coronavirus in China. That announcement sent shares lower.
Walmart reported weaker than expected earnings for Q4, due to weakness in holiday sales.
WTI Crude Oil closed mildly higher at $52.40/barrel, up 0.38%.
US 10 Year Bond Yield closed at 1.559%, down 1.20%.
Asian and European markets closed with losses in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were mostly lower. The Dow lost 165.89 points, Nasdaq added 1.57 point, and the S&P fell 9.87 points. Total NYSE volume traded, a moderate 3.76 billion shares. Declining shares outpaced Advancing shares by 1.39:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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