Tuesday's Market Recap - Stocks Slide Despite Surprise Fed 50 Basis Point Cut.
What is The Premarket Telling Us?
7:00 AM.
At the hour stock futures are moderately higher. Dow futures up 187 points, Nasdaq futures up 68 points, S&P futures up 16 points. Asian markets ended mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 1.09%, unchanged.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $48.13/barrel, up 2.95%.
On the Earnings Calendar:
None.
In M&A News:
Thermo Fisher is buying Qiagen, in a deal worth $10.1 billion.
What About The Asian And European Markets?
Major Asian markets ended the day mixed. Japan (Nikkei 225) down 1.22%, Shanghai rose 0.74%, Hong Kong (Hang Seng) down 0.03%
Major European markets ended positive. German (DAX) up 1.54%, France CAC 40 up 1.74%, London FTSE 100 up 0.79%.
Market And Sector Dynamics
Markets were mostly unchanged at the start of trading, even after the announcement of fiscal, and monetary support for global economies, by G7 finance ministers, central banks, and the IMF (International Monetary Fund). A short while later the Dow was down nearly 350 points, under pressure from the potential effects of coronavirus, declining yields for US bonds, including the 10 Year Bond.
A surprise 50 basis point rate cut by the Fed, around 10:00 AM, sent markets soaring, the Dow up 350 points, a seven hundred point plus round trip. That rally dissolved, almost as soon as it occurred, dragging markets into negative territory for the rest of the trading session.
Today's selloff was broad based with all eleven S&P sectors closing with losses, led by Technology, Financials, Communication Services, Energy, Healthcare, Industrials, Consumer Discretionary, Consumer Staples, and Utilities.
Factors Influencing Today's Market
Tally of coronavirus infections and number of deaths increases here in the US.
Fed/FOMC surprised markets with a 50 basis point cut this morning.
Asian stocks were mixed, but European stocks ended higher.
US 10 Year Bond Yield continue to slide, closing the day at 0.984%, down 15.36%, and scaring markets.
WTI Crude Oil closed higher today at $47.18/barrel, up 0.92%.
Thermo Fisher is buying Qiagen for 10.1 Billion shares.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended today's session just higher than the low of the day. The Dow dived 785.91 points, Nasdaq dived 268.08 points, and the S&P fell 86.86 points. Total NYSE volume traded, a heavy 6.41 billion shares. Declining shares outpaced Advancing shares by 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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