Monday's Market Recap - Investor Mostly Unimpressed By OPEC Plus Russia Oil Production Cut.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately negative at this hour. It's the first trading day since last Thursday, as market were closed on Good Friday for the Easter Holiday. Dow futures down 194 points, Nasdaq futures down 61 points, and S&P futures down 23 points. Over the weekend, OPEC plus Russia, and other countries including Mexico struck an agreement to cut oil production by10 million barrels per day, in May and June. Major Asian markets close mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield sits at 0.73%, down 0.03%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $22.99/barrel, up 1.01%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) down 2.33%, Shanghai down 0.49%, Hong Kong (Hang Seng) up 1.38%.
Major European markets closed convincingly higher. German (DAX) up 2.24%, France CAC 40 gained 1.44%, London FTSE 100 2.24%.
Market And Sector Dynamics
Stocks opened the trading day lower, with the Dow down 135 points, Nasdaq down 37 points, and the S&P fell 15 points. WTI crude oil is up early at $23.47/barrel, up 3.12%. The US 10 Year Bond Yield seems to stabilized in the 0.744% range.
Despite a deal by OPEC - PLUS, including Russia and Mexico to cut global oil production by around 10% per day in May and June, today, crude oil prices and the energy sectors appears unimpressed.
Also impacting markets, is the extent of the damage, the coronavirus, will have on the global, and the US economy, which is most difficult to evaluate at this time.
Market sank even lower during the morning session, with the Dow down 624 points, around 11:30 AM., the low of the day. The selloff moderated during the early afternoon session, but failed get above the flat line.
The session was negative but orderly, with eight of the eleven sectors closing in negative territory, led by Real Estate, Financials, Utilities, Industrials, Basic Materials, Healthcare, Consumer Staples, and Energy. Consumer Discretionary, Technology, and Communication Services recorded modest gains.
Factors Influencing Today's Market
Markets seemed unimpressed with the OPEC Plus Russia 10%/day cut in oil production.
Investor optimism that the Coronavirus curve appears to be flattening in New York and elsewhere in the country.
Asian markets ended mixed, while European markets were solidly higher.
US 10 Year Bond Yield is holding steady, closing today at 0.770%, up 6.11%.
WTI Crude oil price close the day at $22.41/barrel, down 1.54%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today, the Dow lost 328.60 points, Nasdaq up 38.85 points, and the S&P fell 28.19 points. Total NYSE volume traded, a heavy moderately 5.33 billion shares. Declining shares outpaced Advancing shares by 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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