Friday's Market Recap - Dow Down More Than 900 Points In Volatile Session.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are up big at this hour, largely due to intervention of global central banks and governments, to sure up their economies. Dow futures up 732 points, Nasdaq futures up 356 points, and S&P futures up 83 points. Meanwhile coronavirus continues to spread globally.
On The Bond Desk:
The US 10 Year Bond Yield at 1.12%, down 0.15%.
Currency Desk:
Euro dollar: 1.06
UK Pound: 1.14
Crude Oil:
WTI crude oil futures at $27.63/barrel, up 6.64%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) fell 1.04%, Shanghai gained 1.61%, Hong Kong (Hang Seng) gained 5.05%.
Major European markets closed with decent gains. German (DAX) up 3.07%, France CAC 40 up 5.01%, London FTSE 100 rose 0.76%.
Market And Sector Dynamics
Markets opened the session moderately higher, with the Dow up 177 points, Nasdaq rose 130 points, and the S&P rose 20 points. The US 10 Year Bond Yield is holding on above the 1% mark, but WTI crude oil has started off lower, at $24.50/barrel, down 2.85%. Twenty minutes into trading, the rally began to fade, but Consumer Discretionary, and Technology is leading markets. A few minutes later the Dow was down more than 200 points.
Stock turned around at mid-morning with the Dow up more than 300 points, around 11:00 AM, after the Senate indicated they were making progress on a bailout bill, to help individuals, and business, who were forced to layoff people during this COVID-19 pandemic.
Stocks began to steadily lose steam early in the afternoon session, especially after New York's Governor Cuomo, declared a stay at home plan, for all individuals, except emergency services in the State. The State of New Jersey followed with it own declaration, followed by Connecticut.
Markets gradually went south from there, and a quadruple witching Friday, when variety of options are scheduled to expire, made the trading volume more pronounced.
Today's selloff was broad based and deep, with ten of the eleven S&P sectors ending in negative territory, led by Utilities, Consumer Staples, Real Estate, Industrials, Communication Services, Technology, Basic Materials, Healthcare, Financials, and Consumer Discretionary. Energy ended the session modestly higher.
Factors Influencing Today's Market
Global central banks and governments intervene to combat the effect of COVID-19 on their economies.
Hard hit States, New York, New Jersey, Connecticut take emergency measures to stop the spread COVID-19 infections.
Asian market closed lower, but European markets ended with gains.
US 10 Year Bond Yield closed at 0.885%, down 23.58%.
WTI Crude Oil closed at $23.43/barrel, down 11.06%.
This week's Baker Hughes US Oil Rig Count down 19 rigs to 664 total.
Market Close Volume Traded And Advance Decline Ratio
When the markets close it was another disappointing day for the bulls. The Dow fell 913.21 points, Nasdaq lost 271.06 points, and the S&P fell 104.47 points. Total NYSE volume traded, a heavy quadruple witching 9.04 billion shares. Declining shares outpaced Advancing by 1.29:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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