Friday's Market Recap - Collapsing Bond Yields And The Continuing Spread Of Coronavirus Sink Sto
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing to another sell off this morning. Dow futures are down 524 points, Nasdaq futures down 226 points, and the S&P futures down 66 points. Asian markets fell in their session as coronavirus spreads to more countries, including more deaths.
On The Bond Desk:
The US 10 Year Bond Yield at 0.93%, down 0.06%.
Currency Desk:
Euro dollar: 1.24
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $43.84/barrel,down 4.49%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets fell today. Japan (Nikkei 225) down 2.72%, Shanghai fell 1.21%, Hong Kong (Hang Seng) fell 2.32%.
Major European markets were down. German (DAX) 3.37%, France CAC 40 4.14%, London FTSE 100 down 3.62%.
Market And Sector Dynamics
Stock opened the trading day strong to the downside. The Dow sank 700 points, Nasdaq down 260 points, and the S&P fell 93 points. Notwithstanding a strong jobs report showing the economy generated 273,000 job, with unemployment rate ticking down to 3.5%, market are under immense pressure from fear of the coronavirus, and a 10 year treasure yield that continues to be in free fall.
The VIX, the measure of volatility in markets is once more elevated, creating additional fear. All eleven S&P sectors, and all 30 Dow components are lower, early in the session.
Around 10:00 AM, the Dow was down 900 points, one hour later it was down 400 points, and that volatility continued for the rest of the session.
Today's selloff was broad based. All eleven S&P sectors closed the session with losses, led by Energy, Financials, Basic Materials, Technology, Real Estate, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, and Healthcare.
Factors Influencing Today's Market
Fear of the spreading coronavirus continues to dominate market sentiment.
WTI Crude Oil price closed at $41.28/barrel, down 10.07%.
This week's Baker Hughes US Oil Rig count rose 4 to 682 rigs.
Bond yields are collapsing, with the US 10 Year Bond Yield closed at 0.773%, down 15.70%.
Major Asian and European markets closed decidedly lower in today's session.
Market Close Volume Traded And Advance Decline Ratio
After staging a miraculous recovery from 900 points down in the last few minutes of the session, the Dow closed down 256.56 points, Nasdaq lost 162.97 points, and the S&P gained 51.57 points. Total NYSE volume traded, a heavy 6.55 billion shares. Declining shares outpaced Advancing shares 4.53:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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