Thursday's Market Recap - A Bigger Than Expected Unemployment Claims Number Sent Stock Lower.
What is The Premarket Telling Us?
7:30 AM.
US stock futures are modestly elevated at this hour. Could markets be looking to another day of gains? Dow futures are up 35 points, Nasdaq futures up 32 points, and S&P futures are down 1point. After better than expected earning results yesterday after the close, Facebook, Microsoft, Tesla, and Qualcomm are all indicating higher.
On The Bond Desk:
The US 10 Year Bond Yield at 0.63%, up 0.02%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $17.33/barrel, up 15.07%.
On the Earnings Calendar:
Better than expected from Facebook, Microsoft, Tesla, and Qualcomm.
McDonald's reported mixed first quarter earnings before the bell. Earnings missed expectations, but Revenues beat analyst estimates.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets finished nicely higher. Japan (Nikkei 225) up 2.14%, Shanghai up 1.33%, Hong Kong (Hang Seng) up 0.28%.
Major European markets closed sharply lower. German (DAX) fell 2.22%, France CAC 40 down 2.12%, London FTSE 100 down 3.50%.
Market And Sector Dynamics
Stocks began the final trading day of April convincingly lower, with the Dow down 252 points, Nasdaq fell 5 points, and the S&P was down 20 points. Despite a better than expected quarterly earnings performance for big technology companies like Facebook, Microsoft, Tesla, and Qualcomm, investors today chose to focus on this week's Initial Jobless Claims number which showed 3.84 million new claims, bring the total number of claims for the month to more than 30 million. Adding to the negative sentiment is Chicago PMI for April which came in at 35.4 vs 39 expected.
Shares of McDonald are also weighing negatively on the Dow, after the fast food giant reported a mixed quarterly performance, due to the Covid-19 pandemic.
Markets sank lower after the open with the Dow down nearly 380 points, before regaining about half of those losses midway through the morning session.
By the early afternoon the Dow was back at the flat line, before rebounding slightly and holding on to those levels for the session, and into the close.
All eleven S&P sectors were negative from the start of trading, and that's mostly how today's session ended. Basic Materials, Financials, Utilities, Energy, Industrials, Consumer Staples, Real Estate, and Healthcare, led markets lower. Consumer Discretionary and Communication Services were modestly positive.
Factors Influencing Today's Market
This week's Initial Jobless Claims was a larger than expected 3.84 million claims vs 3.50 million claim.
April's Chicago PMI came in a lower than expected 35.4 vs 47.8 in March.
Better than expected first quarter earnings performance from Facebook, Microsoft, Tesla, and Qualcomm. McDonald's reported mixed a mixed quarter.
WTI Crude Oil price closed at 19.56/barrel, up 29.88%.
US 10 Year Bond Yield 0.646%, up 2.72%.
Asian markets were sharply higher in their session.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, markets were decidedly lower. The Dow sank 288.14 points, Nasdaq gave up 25.16 points, and the S&P down 27.08 points. Total NYSE volume traded, a heavy 6.61 points, Declining shares outpace Advancing shares by 2.72:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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