Wednesday's Market Recap - Mixed Session Due To April's Massive ADP Payroll Loss.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are moderately positive at this hour. Dow futures are up 213 points, Nasdaq futures up 75 points, and S&P futures up 25 points. Overnight, Asian markets were mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 0.66%
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $25.43/barrel, up 3.54%.
On the Earnings Calendar:
Disney reported mixed first quarter income after the bell yesterday. The company did beat revenue (YOY), but earnings missed badly due to the Covid-19 economic shutdown.
In M&A News:
Abbvie has finalized its deal to buy Allergan.
What About The Asian And European Markets?
Major Asian markets traded mixed today. Japan (Nikkei 225) lost 2.84%, Shanghai added 0.63%, Hong Kong (Hang Seng) gained 1.13%.
Major European markets were mostly lower. German (DAX) fell 1.15%, France CAC 40 down 1.11%, London FTSE 100 up 0.07%.
Market And Sector Dynamics
Markets got off to a great start, with the Dow up 160 points, Nasdaq gained 65 points, and the S&P rose 19 points. Investors are digesting a this morning's record minus 20,236,000 million ADP private payroll number, due to the Covid-19 lockdown, and mixed earnings picture from Disney, for the same reason.
WTI crude oil was down early, at $23.67/barrel, down 3.45%, and the US 10 Year Bond ticked higher at 0.724%.
Investors also learned intraday the UBER plans to layoff 3700 employees, representing 14% of its workforce.
On hour after the open the Dow gave back all of it early gains, and then some, with the Dow down 107 points. Stocks traded in a narrow range slightly above or below the flat line for the rest of the session until just before the close, when it fell to the low of the day.
The selloff was fairly broad based, with eight of the eleven S&P sectors closing with moderate losses, led by Utilities, Energy, Financials, Real Estate, Basic Materials, Industrials, Consumer Staples, Healthcare, and Communication Services. Technology, and Consumer Discretionary were modestly higher.
Factors Influencing Today's Market
April's ADP Private Payroll shows a massive loss of 20,236,000 jobs due to the Covid-19 lockdown.
Disney first quarter results were mixed. The company badly missed earnings forecast by Revenue was above estimates.
Abbvie finalized deal to buy Allergan.
Uber plans to layoff 3700 employees, representing 14% of workforce.
US 10 Year Bond Yield closed at 0.709%, up 7.18%.
WTI crude oil price closed the day at $23.99/barrel, down 2.32%.
This week's EIA Petroleum Status Report shows US crude oil inventory rose 4.6 million barrels.
Market Close Volume Traded And Advance Decline Ratio
When the session ended, market were mixed. The Dow lost 218.45 points, Nasdaq gained 45.27 points, and the S&P fell 20.02 points. Total NYSE volume traded, a moderate 4.92 billion shares. Declining shares outpaced Advancing shares by 2.26:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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