Monday's Market Recap - Crude Oil Prices Goes Negative For The First Time In History And Markets
What is The Premarket Telling Us?
7:00 AM.
US stock futures are sharply lower at this hour, as a slide in crude oil prices to a record lows. Dow futures are down 394 points, Nasdaq futures down 91 points, and S&P futures down 44 points.
Major Asian markets ended their session mostly lower.
On The Bond Desk:
The US 10 Year Bond Yield at 0.65%, up 0.04%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $13.30/barrel, down 27.20%
On the Earnings Calendar:
United Airlines reports a loss of $2.1 Billion. The company also missed Revenue expectations, and is expected to receive $9.5 Billion under the Cares Act.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 1.15%, Shanghai up 0.50%, Hong Kong (Hang Seng) down 0.21%.
Major European markets closed higher. German (DAX) up 0.47%, France CAC 40 up 0.65%, London FTSE 100 up 0.45%.
Market And Sector Dynamics
Stock opened the trading day convincingly lower. The Dow sank 450 points, Nasdaq down 77 points, and the S&P fell 35 points. The US 10 Year Bond Yield appears stable, currently at 0.626%.
A record decline in WTI Crude Oil prices is also pressuring markets. Half an hour after the open WTI crude oil was at $11.32/barrel, down a shocking 38%.
Investors are also anticipating the passage of an additional $400 billion coronavirus bill to help small business, hospitals,and States, after the prior $350 billion ran out in fourteen days, leaving a lot of smaller business without assistance.
All eleven S&P sectors were lower early in the trading session, confirming the negative tone of the markets.
Market bounced of the lows of the morning, and held on to those levels for most of the late morning and afternoon session, until reports that there would not be a deal on the new coronavirus bill today.
Around the same time in the afternoon, WTI crude oil price went negative, for the first time in history, sending stock steadily lower, to close at the low of the day.
All eleven S&P sectors closed the session with losses. Utilities, Real Estate, Energy, Industrials, Basic Materials, Consumer Staples, Financials, Technology, Consumer Discretionary, and Communication Services.
Factors Influencing Today's Market
Markets baffled by WTI crude oil price going negative for the first time in history.
WTI Crude Oil closed the day at $-37.63/barrel, down 305.97%.
US 10 Year Bond Yield closed at 0.616%, down 4.20%.
Asian markets closed mixed, while European stocks closed with nice gains.
United Airlines reports a loss of $2.1 billion.
Investors anticipating a deal in Congress to provide additional PPP assistance for small businesses.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session, the Dow lost 592.05 points, Nasdaq fell 89.41 points, and the S&P fell 51.40 points. Total NYSE volume traded, a moderate 5.27 billion shares. Declining shares outpaced Advancing shares by 3.42:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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