Friday's Market Recap - House Passes Coronavirus Stimulus, And Stocks Tank.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are taking a breather this morning following three consecutive days of rallies. Dow futures are down 327 points, Nasdaq futures down 131 points, and the S&P futures down 45 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.81%, down 0.05%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $22.76/barrel, up .071%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets recorded strong gains overnight. Japan (Nikkei 225) gained 3.88%, Shanghai up 0.26%, Hong Kong (Hang Seng) up 0.56%.
Major European markets closed lower today. German (DAX) lost 3.68%, France CAC 40 down 4.23%, London FTSE 100 lost 5.25%.
Market And Sector Dynamics
After yesterday's day of healthy gains, markets opened today, hard to the downside. The Dow lost 806 points, Nasdaq down 224 points, and the S&P gave up 83 points.
Stocks sank even lower shortly after the open, with the Dow down 1000 points, the intraday low.
The Dow hung out in negative territory bouncing between 500 - 800 point range for the rest of the morning and afternoon session, until after the passing of two trillion dollar coronavirus stimulus bill, when markets looked like they were staging a strong recovery, with the Dow down around 300 points. Unfortunately, around 3:30 PM, the bottom fell out, with stocks falling precipitously, ending just short of the low of the day.
The selloff was broad based, and negative, with ten of eleven S&P sectors ending the day with losses, led by Energy, Technology, Communication Services, Industrials, Basic Materials, Consumer Discretionary, Financials, Healthcare, and Consumer Staples. Utilities were modestly higher.
Factors Influencing Today's Market
The House passed the coronavirus stimulus bill, which was signed into law by the President.
Coronavirus cased and deaths continue to increase in the nationally as more States are reporting infections.
Major Asian markets gained ground overnight, while European markets sold off.
The US 10 Year Bond Yield closed the day at 0.676%, down 20.25%.
WTI crude oil closed at $21.51/barrel, down 4.82%, as the Saudi Russia dispute pressure markets.
This week's Baker Hughes US Oil Rig count was down 40 rigs to 624 total. The largest weekly decline in five years.
Market Close Volume Traded And Advance Decline Ratio
Market traded lower in a volatile session today. At the end of trading the Dow lost 915.42 points, Nasdaq lost 295.16 points, and the S&P fell 88.60 points. Total NYSE volume traded, a heavy 6.24 billion shares. Declining shares outpaced Advancing shares nearly 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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