Tuesday's Market Recap - Stocks Tank As Crude Oil Prices Collapse.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are solidly negatively lower, indicating markets will be weaker at the open. Dow futures are down 404 points, Nasdaq futures down 73 points, and S&P futures down 39 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.63% down 0.02%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $16.71/barrel, down 18.21%.
On the Earnings Calendar:
Pepsi's first quarter earnings beat analyst expectations. The company also reported that coronavirus lockdown will have a material effect on the company's performance.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets fell hard in their sessions. Japan (Nikkei 225) down 1.97%, Shanghai fell 0.90%, Hong Kong (Hang Seng) fell 2.20%,
Major European markets also traded lower today. German (DAX) 3.99%, France CAC 40 down 3.77%, London FTSE 100 down 2.96%.
Market And Sector Dynamics
Today's trading got off to an ugly start. The Dow sank 516 points, Nasdaq fell 98 points, and the S&P fell 48 points, pulled down by yesterdays historical decline in WTI crude oil prices. Yesterday crude oil closed at at -$37/barrel (May futures which expires today. The June futures price is also in rapid decline.The US 10 Year Bond Yield has ticked lower this morning, hovering at 0.557%.
All eleven S&P sector are trading lower early in the session.
Stocks declined further early in the session, with the Dow down 706 points, the low of the day shortly before noon. Stock moderated off the lows early in the afternoon, but could not hold on to those gains.
Stocks traded in negative territory for the entire session. All eleven S&P sector ended in negative territory, led by Technology, Communication Services, Financials, Consumer Discretionary, Basic Materials, Industrials, Consumer Staples, Energy, Real Estate, and Utilities.
Factors Influencing Today's Market
The record collapse of crude oil prices continues to weigh heavy on markets.
Pepsi beats first quarter earnings results. The company warned that coronavirus will have a material impact on its operations.
Congress and the Administration are nearing agreement on a $450 billion small business assistance package, to supplement the earlier one that left out smaller businesses.
Major Asian and European markets closed the day decidedly lower.
WTI crude oil closed at $14.02/barrel, up (- 137.02%).
The US 10 Year Bond closed at 0.566%, down 8.18%.
Market Close Volume Traded And Advance Decline Ratio
Markets lost significant ground again today. At the closed the Dow was down 631.56 points, Nasdaq fell 297.50 points, and the S&P fell 86.60 points. Total NYSE volume traded, a moderate 5.12 billion shares. Declining shares outpaced Advancing shares by 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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