Thursday's Market Recap - Stocks Gave Back Nearly All Of Yesterday Gains.
What is The Premarket Telling Us?
7:00 AM.
After yesterday's massive rally, volatility has roared back. At this hour, Dow futures are down 520 points, Nasdaq futures down 181 points, and the S&P futures down 68 points, suggest markets will be down at the open. Coronavirus continues to be the major worry, as it's difficult to put a time frame or duration of the outbreak, and its continued impact on supply chains and demand destruction. Airlines and hotels are currently feeling the brunt of the problems. Asian markets soared overnight, responding to our rally on Wednesday.
On The Bond Desk:
The US 10 Year Bond Yield at 0.99%, down 0.01%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $46.74/barrel, down 0.09%.
On the Earnings Calendar:
None.
In M&A News:
HP Inc., has rejected Xeroxs' hostile takeover bid.
What About The Asian And European Markets?
Major Asian markets soared overnight. Japan (Nikkei 225) gained 1.09%, Shanghai rose 1.99%, Hong Kong (Hang Seng) up 2.08%
Major European markets fell in their session. German (DAX) lost 1.51%, France CAC 40 down 1.90%, London FTSE 100 down 1.62%.
Market And Sector Dynamics
As indicated by the futures, markets tumbled at the open, with the Dow down 690 points, Nasdaq tumbled 217 points, and the S&P sank 76 points, as coronavirus uncertainty, falling 10 year bond yield, fear of recession weigh negatively on markets. Markets breath is deeply negative, and all 11 S&P sectors are solidly lower, early in the session.
The markets declined steadily during the entire session, closing at the low of the day.
Today's market decline was very pronounced, with all 11 S&P sector ending the day with solid losses, led by, Industrials, Financials, Consumer Discretionary, Communication Services, Energy, Basic Materials, Technology, Healthcare, Real Estate, Communication Services, and Utilities.
Factors Influencing Today's Market
Fear of coronavirus and its effect on global economies and a possible recession dominated markets.
Shares of financials companies took the biggest hit, early, but soon every sector fell hard.
The US 10 Year Bond Yield closed at 0.917%, down down 13.08%, and scaring markets.
WTI Crude Oil closed at $46.23/barrel down 1.18%
This week's Initial Jobless Claims fell 3,000 to 216,000 claims.
Asian markets soared overnight, but European stocks declined more than one percent.
Market Close Volume Traded And Advance Decline Ratio
Stocks tumbled lower again today, wiping out most of yesterday's impressive gains. The Dow fell 969.58 points, not far from the low of the day. The Nasdaq lost 279.49 points, and the S&P fell 106.18 points. Total NYSE volume traded, a moderate 5.58 billion shares. Declining shares outpaced Advancing better than 9:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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