Thursday's Market Recap - Another Big Down Day Involving NYSE Circuit Breakers.
What is The Premarket Telling Us?
7:00 AM.
Stock index futures are plummeting again at this hour. Dow futures down 1201 points, Nasdaq futures down 389 points, and S&P futures down 132 points. Market are displaying no confidence in the President Oval Office speech last night, which involved an announced travel ban for people coming from Europe, with an exemption for the United Kingdom. This morning the European Central Bank, now led by Christine Lagarde, announced coronavirus support measures to help sure up affected economies.
On The Bond Desk:
The US 10 Year Bond Yield at 0.82%, up 0.07%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $31.12/barrel, down 5.64%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed lower. Japan (Nikkei 225) down 4.41%, Shanghai down down 1.52%, Hong Kong (Hang Seng) down 3.66%
Major European markets. German (DAX) down 12.55%, France CAC 40 down 12.28%, London FTSE 100 down 10.87%.
Market And Sector Dynamics
As the futures indicated, markets got off to another ugly start, with the Dow down 1750 points, Nasdaq down 546 points, and the S&P up 182 points. The US 10 Year bond Yield sits at 0.675% early, and the VIX, the measure of volatility in markets sit at 61.59.
For the second time this week the S&P fell 7%, triggering a 15 minute trading halt, after which, stocks continued trading. By 10:55 AM, the Dow fell more that 2016 points, and continued at or about that level until shortly before 1:00 PM when the Fed intervened by injecting massive amounts of liquidity into the system to sure up treasury market. The market spiked sharply higher on this news, with the Dow down only 750 points. That was short lived however, as markets gave back those gains a short while later, and continued to decline during the rest of the session.
Today's selloff was broad based and deep, led by Energy, Financials, Industrials, Utilities, Technology, Consumer Discretionary, Basic Material, Consumer Staples, Communication Services, Real Estate, and Healthcare.
Factors Influencing Today's Market
Investor reacted negatively to the President's coronavirus address to nation last night, in which he announced a travel ban for people coming to the US from Europe, except the United Kingdom.
Asian and European stocks fell hard in their sessions.
WTI Crude Oil closed lower again today at $31.05/barrel, down 5.85%.
The US 10 Year Bond Yield was a little less volatile today, closed at 0.812%, down 7.41%.
This week's Initial Jobless Claims fell 4000 claims to 211,000 total.
The Federal Reserve took injected massive liquidity into the 'Repo' market to sure up treasury market.
The House Democrats and Peter Mnuchin from the Treasury are negotiating a coronavirus support deal.
Market Close Volume Traded And Advance Decline Ratio
Investors took another walloping in the markets today. The Dow plunged 2352.50 points, (largest single day point drop ever) Nasdaq plummeted 750.25 points, and the S&P dived 260.74 points. Total NYSE volume traded, a very heave 8.77 billion shares. Decliners outpaced Advancers by 45:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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