Friday's Market Recap - Coronavirus And Declining Bond Yields Worry Investors.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately down this morning. Dow futures down 112 points, Nasdaq futures down 50 points, and S&P futures down 14 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.52%, down 0.05%.
Currency Desk:
Euro dollar: 1.07
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $52.89/barrel, down 1.84%.
On the Earnings Calendar:
Coca Kola announced it's quarterly performance will take a hit from the coronavirus.
Deere reported strong quarterly earnings results. Shares of the company jumped 7%.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 0.39%, Shanghai added 0.31%, Hong Kong (Hang Seng) lost 1.09%.
Major European markets were all lower. German (DAX) lost 0.62%, France CAC 40 down 0.54%, London FTSE 100 down 0.44%.
Market And Sector Dynamics
Stocks opened triple digit lower with the Dow down 114 points, Nasdaq fell 41 points, and the S&P lost 14 points. WTI crude oil is lower early at $52.90/barrel, down 1.82%.
Stocks fell even lower after the open and remained at that level for most of the morning session, before rebounding slightly shortly before noon.
New cases of coronavirus in places such as South Korea, and among those Americans recently evacuated from Japan, is giving investors more reason to worry about the further spreading of this desease.
In terms of US Data, February Purchasing Managers Index (PMI) was a much weaker than expected at 49.6 vs 52.50. A steady decline in US bond yields is also a concern for investors, as they try to grapple with what message bond yields are trying to convey. Is it a short term flight to quality, or is it signaling an impending recession. Gold prices are also rising adding more confusion.
Today's sell off was fairly pronounced, with eight of the eleven S&P sectors closed in positive territory, led by Technology, Consumer Discretionary, Communication Services, Energy, Financials, Industrials, Basic Materials, and Utilities. Real Estate, and Consumer Staples.
Factors Influencing Today's Market
New coronavirus cases announced in a secret Church group in South Korea, and more coronavirus cases have been reported among US citizens recently evacuated from Japan.
February Purchasing Managers Index (PMI) down 49.6 vs 52.50.
WTI crude oil closed the session lower at $53.38/barrel, down 0.74%.
This week's Baker Hughes US oil rig count rose 1 to 679.
The US 10 Year Bond Yield fell today to 1.473%, down 3.03%.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, all the indexes were lower. The Dow fell 227.57 points, Nasdaq lost 174.38 points, and the S&P lost 35.48 points. Total NYSE volume traded, a modest 3.93 billion shares. Declining shares outpaced Advancing shares by 2.32:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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