Tuesday's Market Recap - Dow Tumbles Another 900 Points As Coronavirus Spreads.
What is The Premarket Telling Us?
7:00 AM.
If you are guided by the US stock futures, it appears market could stage a modest gain at the open. Dow futures are up 69 points, Nasdaq futures up 29 points, and S&P futures up 6 points. Concerns about the spread o coronavirus continues to dominate global markets.
On The Bond Desk:
The US 10 Year Bond Yield pointing lower at 1.38%, down 0.09%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $51.39/barrel, down 0.08%.
On the Earnings Calendar:
Home Depot reported better than expected quarterly earnings before the bell this morning.
Salesforce.com and Virgin Galactic reports earning after the close trading today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) back from holiday yesterday, was down 3.34%, Shanghai down 0.60%, Hong Kong (Hang Seng) gained 0.27%.
Major European markets closed with losses. German (DAX) down 1.88%, France CAC 40 down 1.94%, London FTSE 100 down 1.94%.
Market And Sector Dynamics
Market opened triple digit higher. The Dow gained 151 points, Nasdaq gained 80 points, and S&P gained 19 points. Coronavirus continues to weigh negatively on market globally, as more cases are reported in different new countries, all be it in small numbers. Here in the US the CDC suggests that Americans should make preparations for any possible disruptions, such as schools closures. According to the CDC, it's not a matter of if, but when.
Another negative catalyst for the markets is the decline in crude oil price, and the fall in the US 10 Year Bond yield.
Market trended lower for the entire trading session, Dow down 315 points, and the bottom fell out from there, as investors ran for the exits.
Today's sell off was broad based and deep, with all eleven S&P sectors closing in negative territory, led by Energy, Basic Materials, and Industrials down more than 4%. Financials and Technology down more than 3%, while the remaining sectors closed down more than 2%.
Factors Influencing Today's Market
Coronavirus cases spreads in small numbers in a few other countries in Europe and Middle East.
US 10 Year Bond Yields continues to decline in mostly a flight to quality trade.
WTI Crude Oil price closed the day at $49.90/barrel, down 2.97%.
Home Depot reports strong quarterly earnings before the bell this morning. Shares are higher.
Asian and European markets were mostly lower in their sessions.
Market Close Volume Traded And Advance Decline Ratio
The market destruction of yesterday continued today, with the Dow tumbled 879.44 points, Nasdaq tumbled 255.67 points, and the S&P lost 97.68 points. Total NYSE volume traded, a heavy 5.67 billion shares. Declining shares outpaced Advancing shares nearly 10:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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