Monday's Market Recap - Stocks Recovered Late After Initial Worry About Buffet's Airline Sal
What is The Premarket Telling Us?
7:00 AM.
US stock futures are decidedly lower. Dow futures down 277 points, Nasdaq futures down 74 points, and S&P futures down 27 points. Asian markets closed mostly lower, following our 600 point dive on Friday. Legendary investor, Warren Buffet speaking at Berkshire Hathaway's annual meeting over the weekend stated that he sold all airline shares. No doubt investors will be paying close attention to this today.
On The Bond Desk:
The US 10 Year Bond Yield at 1.09%
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.25
Crude Oil:
WTI crude oil futures
On the Earnings Calendar:
Tyson Foods reported disappointing first quarter earnings results.
In M&A News:
J Crew has filed for Chapter 11 Bankruptcy Protection.
What About The Asian And European Markets?
Major Asian markets were markedly lower overnight. Japan (Nikkei 225) down 2.84%, Shanghai up 1.33%, Hong Kong (Hang Seng) lost 4.18%.
Major European markets also ended lower. German (DAX) down 3.64%, France CAC 40 down 4.24%, London FTSE 100 down 0.16%.
Market And Sector Dynamics
Stock opened today's trading session sharply lower. The Dow fell 250 points, Nasdaq fell 50 points, and the S&P lost 24 points. Pressuring markets this morning are the Airline stocks, after investors learned from Warren Buffett, the Berkshire Hathaway Chairman, that the company had sold all its holdings in Delta, United, and Southwest airlines during the quarter, stating that the investment thesis for the airline industry has changed. In past downturns, the legendary long term value investor has always been a beacon of hope and optimism, riding in to buy stocks when many others are running for safety. This time around, Mr. Buffet sold the airlines, and bought nothing, but maintained he was still optimistic about America and its long term prospects.
Market remained lower for most of the session, with the Dow down over 360 points, at the low of the day shortly after the open, and traded in the down 200 - 300 down range for most of the session, rebounding sharply into positive territory a few minutes into the close.
Today's session was fairly balance. Seven of the eleven S&P sectors closed with modest gains led by Energy, Technology, Utilities, Consumer Discretionary, Basic Materials, Communication Services, and Healthcare. Industrials, Financials, and Real Estate were lower.
Factors Influencing Today's Market
Berkshire Hathaway CEO, Warren Buffet sold his all of his airline holding saying the investment landscape has changed for that industry.
Retailer J Crew has filed to Chapter 11 Bankruptcy protection due to the impact on coronavirus on the business.
Tyson Foods reported disappointing first quarter performance. The company has close a number of plants because of coronavirus outbreaks in some of the company's plants.
Major Asian and European markets were lower in their sessions.
US 10 Year Bond Yield close at 0.631%,up 2.08%.
WTI Crude Oil price close at 20.39/barrel, up 2.08%
Market Close Volume Traded And Advance Decline Ratio
At the end of the session, the major indexes ended modestly higher. The Dow gained 26.07 points, Nasdaq gained 105.77 points, and S&P gained 12.03 points. Total NYSE volume traded, a moderate 4.81 billion shares. Declining shares outpaced Advancing shares by 1.15:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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