Wednesday's Market Recap - Disappointing Earning, And Record Drop In Retail Sales Tanks Markets.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are pointing decidedly lower early. Dow futures down 395 points, Nasdaq futures down 108 points, and S&P futures down 54 points. Major Asian markets were modestly lower in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 0.75%, unchanged.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $19.59/barrel, down 2.59%.
On the Earnings Calendar:
Bank of America quarterly earnings fell by 45%. Citigroup earnings fell 46%. Goldman Sachs earning were better than expected. Investors are now focused on contingencies for loan losses, the major risk for banks due to the Covid-19 pandemic.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded lower. Japan (Nikkei 225) fell 0.45%, Shanghai down 0.57%, Hong Kong (Hang Seng) down 1.19%.
Major European markets were more than three percent lower. German (DAX) down 3.90%, France CAC 40 down 3.76%, London FTSE 100 down 3.34%.
Market And Sector Dynamics
Stocks dived at the opening bell. The Dow fell 530 points, Nasdaq down
161 points, and the S&P fell 64 points. Disappointing quarterly earnings from Bank of America as earning fell 45%, while Goldman Sachs earnings were better than expected. WTI crude oil is below the twenty dollar mark, currently at $19.72/barrel, down 1.78%, and the US 10 Year Bond Yield sits at 0.674%.
Retail Sales fell off a cliff in March as American shelter in place due to coronavirus, falling - 8.7% vs -7.3% estimated.
Stocks sank even lower after the open as a barrage on US economic data painted a negative picture of current economic conditions coming out of this pandemic lockdown. Best Buy and JCPenny will furlough workers, and JCPenny may be on the brink of bankruptcy.
FedX and Disney have announced plans to furlough workers, as the pandemic grows.
Housing Market Index for April came in at 30 vs 63 estimated. At the low of the day the Dow was down 760 points. The selloff moderated during the afternoon session.
Today's selloff was broad based led by Energy, Basic Materials, Financials, Real Estate, Utilities, Individuals, Techology, Consumer Discretionary, and Consumer Staples.
Factors Influencing Today's Market
Bank of America, Citibank's first quarter earnings down 45%, and 46% respectively.
Contingencies for loan losses a major risk for banks as a result of this pandemic.
Best Buy, JCPenny, Disney have announced plans to furlough some workers as pandemic lock down continues.
April's Home Builders Sentiment Index came in at 30 vs 72 in (March).
US 10 Year Bond closed at 0.635%, down 15.41%.
WTI Crude Oil closed today at $19.87/barrel, down 1.19%.
This week's US Crude Oil inventory rose 19.2 million barrels vs 15.2 million barrels in prior week.
Market Close Volume Traded And Advance Decline Ratio
Markets sank solidly lower in today's session. The Dow lost 445.41 points, Nasdaq lost 122.56 points, and the S&P down 62.70 points. Total NYSE volume traded, a moderate 5.23 billion shares. Declining shares outpaced Advancing shares better than 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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