Monday's Market Recap - Stocks Sink 500 Plus Points As Senate Procedural Votes Fail.
What is The Premarket Telling Us?
6:30 AM.
US stock futures have moderated this morning, after being 'limit down' (down 5%) last evening and overnight. Dow futures are down 588 points, Nasdaq down 190 points, and the S&P down 69 points. Investors are laser focused on Washington, anticipating the bailout of ordinary Americans, and businesses, adversely affected by the ordered shutdown of the economy due to the coronavirus. Asian markets were mostly lower while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 0.94%, down 0.18%.
Currency Desk:
Euro dollar: 1.06
UK Pound: 1.16
Crude Oil:
WTI crude oil futures at 22.56/barrel, down 0.35%.
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) gained 2.02%, Shanghai fell 3.11%, Hong Kong (Hang Seng) lost 4.86%.
Major European markets closed with losses. German (DAX) fell 2.10%, France CAC 40 fell 3.32%, London FTSE 100 down down 3.79%.
Market And Sector Dynamics
Stock opened lower. The Dow lost 320 points, Nasdaq lost 37 points, and the S&P lost 37 point. WTI crude oil is pushing higher at $22.94 barrel, up 1.02%.
Markets are eagerly anticipating a massive Trillion Dollar coronavirus "bailout bill" currently being negotiated in the Senate, that was supposed to be voted on today. Unfortunately, that bill hit a snag overnight, with Democrats looking for some oversight on the $500 Billion portion of the bill earmarked to support big business such as the Airlines, Boeing,Hotels, and Cruise industries.
After one failed procedural vote in the Senate, overnight, and another one that failed today, negotiations are still going on between Senate Minority Leader, Chuck Schumer, and Steven Mnuchin in an effort to hammer out a deal. While it appears that some progress in being made, markets are understandably nervous, and investors are voting with their feet, albeit in an orderly fashion.
Stock sold off drastically about an hour after the open, with the Dow down more than 900 points at the low of the session, shortly before noon. Stocks did recover during the afternoon session as optimism about the passing of the coronavirus bill triggered some buying late in the session.
Today's selloff was broad based but orderly, led by Energy, Financials, Real Estate, Utilities, Healthcare, Basic Materials, Industrials, Consumer Staples, and Technology.
Factors Influencing Today's Market
The Federal Reserve intervened this morning, adding massive support to the credit markets.
The US Congress seems to be nearing a massive trillion plus stimulus package for the support the economic damage caused by the coronavirus.
WTI crude oil regained some ground today, closing at 23.36/barrel, up 4.15%.
The US 10 Year Bond Yield closed at 0.763%, down 3.82%.
The number of coronavirus continues to soar globally, including in the US.
Market Close Volume Traded And Advance Decline Ratio
Today the major indexes ended lower. The Dow sank 582.05 points, Nasdaq fell 18.84 points, and the S&P fell 67.52 points. Total NYSE volume traded, a heavy 7.31 billion shares. Declining shares outpaced Advancing shares by 3.5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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