Friday's Market Recap - Talk Of Tariffs To Punish China For Covid-19 Sink Markets.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are across the board lower at this hour. Dow futures down 457 points, Nasdaq down 226 point, and S&P futures down 58.50 points. Talk that the Administration may be considering placing tariffs on China as punishment for the Covid-19 pandemic.
On The Bond Desk:
The US 10 Year Bond Yield at 0.62% down 0.01%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $18.76/barrel
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) down 2.84%, Shanghai closed %, Hong Kong (Hang Seng) closed % for May Day holiday.
Major European markets. German (DAX) down 2.22%, France CAC 40 down 2.12%, London FTSE 100 %
Market And Sector Dynamics
Stocks opened the first trading day of May deep in negative territory. The Dow retreated 412 points, Nasdaq fell 199 points, and the S&P lost 55 points. Fear that the Trump Administration will impose further tariffs on China, who they blame for the Covid-19 pandemic.
Finally investors are beginning to focus more closely on the economic impact of the Covid-19 pandemic, globally and in the US, as well as how long it will take to get back to some kind of normalcy.
Crude oil began the day higher, with WTI at $19.92/barrel, up 5.31%, while the US 10 Year Bond Yield held at 0.620%. All eleven S&P sectors also began the day with loss.
Markets traded in the down 450 - 600 range for the entire day before closing at the just off the low of the day.
Market tone was negative but trading was orderly. The sell off was broad based, with all eleven S&P sectors closed the day lower, led by Energy, Consumer Discretionary, Financials, Real Estate, Industrials, Technology, Basic Materials, Healthcare, Communication Services, and Consumer Staples.
Factors Influencing Today's Market
Talk that the Trump Administration could consider more tariffs on China because of Covid-19.
As more States start opening their economies investors are doubtful of a quick recovery.
Japan was lower. Other Asian markets closed for May Day holiday. Major European markets were lower.
US 10 Year Bond Yield closed at 0.618%, down 4.26%.
WTI Crude Oil closed today at $19.78/barrel, up 4.99%.
This week's Baker Hughes Oil Rig count fell 53 rigs to 325 total.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, all the major indices were deep in negative territory. The Dow sank 622.03 points, Nasdaq tanked 284.60 points, and the S&P lost 81.72 points. Total NYSE volume traded, a moderate 4.77 billion shares. Declining shares outpaced Advancing shares by 6:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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