Thursday's Market Recap - Dow Prints Biggest One Day Point Drop In History.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are down again this morning, as US officials warns of potential coronavirus outbreak hear at home. Dow futures down 211 points, Nasdaq futures down 59 points, and S&P futures down 23 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.31%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $47.62/barrel, down 2.29%.
On the Earnings Calendar:
Home furnishing retailed Wayfair reported disappointing quarterly results.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) fell 2.13%, Shanghai up 0.11%, Hong Kong (Hang Seng) rose 0.52%
Major European markets. German (DAX) fell 3.19%, France CAC 40 down 3.32%, London FTSE 100 down 3.49%.
Market And Sector Dynamics
Stocks plunged lower at the open. The Dow fell 500 points, Nasdaq dived 233 points, and the S&P sank 52 points. Bond yields also sank lower again, undoubtedly, in a flight to quality trade. Stocks are definitely approaching correction territory.
Twenty minutes after opening the Dow was down more than 600 point as the selling pressure continued, as more cases of the coronavirus were reported in other countries, as well as US, increasing the level public fear. By 10:30 AM, the markets hit the low of the morning, with the Dow down 959 points.
Markets pulled back convincingly from the morning lows, with Dow down less than 300 points, around 1:00 PM. This elevation was short lived however, as the markets gradually went south form there, to close at the low of the day.
The sell off was broad based and intense, but orderly. All eleven S&P sectors ended the day down more than 3, or 4 or 5 percent, led by Real Estate, Energy, Technology, Utilities, Basic Materials, Consumer Discretionary, Consumer Staples, Communication Services, Industrials, and Healthcare.
Factors Influencing Today's Market
More coronavirus cases being reported outside of China, and here in the US as well.
A lack of confidence that the the US Administration is doing enough to contain the outbreak.
US 10 Year Bond Yield close the day at 1.274%, down 4.47%.
February Initial Jobless Claims rose 8,000 to 219,000.
Fourth Quarter GDP held at 2.1%.
WTI Crude Oil continues to slide lower, and closed the day at $47.08/barrel, down 3.37%.
Asian markets were mixed, while Europe's major markets were down more than 3%.
Market Close Volume Traded And Advance Decline Ratio
Another ugly day for stocks. The Dow tanked 1190.95 points, the largest point drop in history. The Nasdaq sank 414.29 points, and the S&P sank 137.63 points. Total NYSE volume traded, a whopping 7.14 billion shares. Declining shares outpaced Advancing shares nearly 9:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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