Wednesday's Market Recap - Fed Chair Powell: Recovery Will Be Gradual.
What is The Premarket Telling Us?
6:30 PM.
Stock index futures are moderately higher this morning, with the Dow up 151 points, Nasdaq futures up 66 points, while the S&P futures up 16 points. Fed Chair Powell will delivery remarks to the Peterson Institute of International Economics this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 0.68%, up down 0.05%.
Currency Desk:
Euro dollar: 1.07
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $26.38/barrel, up 0.19%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mildly lower. Japan (Nikkei 225) down 0.49%, Shanghai up 0.22%, Hong Kong (Hang Seng) down 0.27%.
Major European markets were moderately lower. German (DAX) down 2.56%, France CAC 40 down 2.85%, London FTSE 100 down 1.51%.
Market And Sector Dynamics
Stocks got off to a mixed session this morning. The Dow fell 109 points, Nasdaq rose 15 points, and the S&P was down 5 points. Fed Chair Jerome Powell in an address and Q&A session with the Peterson Institute for International Economics suggested that we may have to suffer a few more months of job losses, before things begin to turn around. Some investors feel that Chair Powell was not forcefully shoot down the concept of negative interest rate, when he answered a question on the topic.
Markets sank even lower shortly after the open, hitting a low of more than 600 points in the early afternoon, and remained at those levels for the rest of the session.
Market tone was negative, and the selloff was broad based, with all eleven S&P sectors closing the day with losses, led by Energy, Financials, Industrials, Basic Materials, Technology, Communication Services, Real Estate, Consumer Discretionary, Healthcare, Consumer Staples, and Utilities.
Factors Influencing Today's Market
Fed Chair Powell's speech to the Peterson Institute for International Economics dampened markets sentiment. He all but ruled out using negative interest rate,saying it's not an option.
Investors were in a glass half empty mode in today's session, thinking the economic recovery may be years away.
Major Asian and European markets traded lower in their sessions.
US 10 Year Bond Yield closed at $25.29/barrel, down 1.90%.
WTI Crude Oil closed the session at 0.654%, down 1.89%.
This week's EIA Petroleum Status Report shows US crude oil inventory fell/draw 0.7 million barrels.
Market Close Volume Traded And Advance Decline Ratio
Markets sold off again today. At the end of trading the Dow lost 516.81 points, Nasdaq lost 139.38 points, and the S&P lost 50.12 points. Total NYSE volume traded, moderately heavy 6.15 billion shares. Declining shares outpaced Advancing shares better than 8:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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