Tuesday's Market Recap - Stocks Rally Then Retreat On Uncertain Earnings Picture Covid-19 Fear.
What is The Premarket Telling Us?
8:00 AM.
Stock index futures are smartly higher at the hour. Dow futures up 332 points, Nasdaq futures up 94 points, and S&P futures up 36 points. First quarter earnings are in full swing, with companies such as 3M, Caterpillar, Pepsi, Merck and General Motors reporting before the opening bell.
On The Bond Desk:
The US 10 Year Bond Yield at .060%, unchanged.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $11.44/barrel, down 10.40%.
On the Earnings Calendar:
3M, Pepsi, reported better than expected first quarter earning results buoyed by demand for their products due to coronavirus pandemic.General Motors, Caterpillar, Merck, and South West Airlines all reported poor earnings this morning, resulting from the pandemic lockdown.
GM also announced it will restart some factories in the US starting on May 18th.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed in their session. Japan (Nikkei 225) fell 0.06%, Shanghai fell 0.19%, Hong Kong (Hang Seng) up 1.22%.
Major European markets closed more than one percent higher. German (DAX) gained 1.27%, France CAC 40 up 1.43%, London FTSE 100 up 1.91%.
Market And Sector Dynamics
Stocks jumped higher at the open, with the Dow up 376 points, Nasdaq up 94 points, and S&P up 40 points, buoyed by continued optimism as more State announce plans to open local businesses.
The US 10 Year Bond Yield sits at 0.635%, early, and WTI Crude Oil is at $12.27/barrel, down 3.99%.
Markets gradually lost steam late in the morning session, going negative around 11:00 AM, before returning positive again around noontime. Markets remained modestly positive for the rest of the session, before falling back into negative territory shortly before the closing bell. At the high in the morning, the Dow was up 378 points.
Today's session was fairly balanced, with seven of the eleven S&P sectors ending the day with modest gains, led by Energy, Basic Materials, Industrials, Financials, Consumer Staples, Utilities, and Real Estate. Healthcare, Technology, and Consumer Discretionary were the laggards today.
Factors Influencing Today's Market
After strong morning rally market retreated to end mildly lower.
Investors worry about mixed earnings picture, as coronavirus pandemic continues.
Asian market closed the day lower, while European stocks closed much solidly higher.
US 10 Year Bond Yield closed at 0.616%, down 7.17%.
WTI Crude Oil price closed at $13.30/barrel, up 4.07%.
Market Close Volume Traded And Advance Decline Ratio
Markets took a breather today. The Dow closed down 32.23 points, Nasdaq fell 122.43 points, and the S&P lost 15.09 points. Total NYSE volume traded, a moderate 5.69 billion shares. Advancing shares outpaced Declining shares by 2.76:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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