Tuesday's Market Recap - STAT News Report: Moderna Test Results Leaves Questions. Markets Tanks.
What is The Premarket Telling Us?
7:00 AM.
Futures are modestly lower at this hour. Dow futures down 81 points, Nasdaq down 5 points, and the S&P down 10 points. Asian stocks were higher in their sessions overnight. Feds Powell, and Treasury's Mnuchin testify before Senate Banking Committee later this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 0.74%, up 0.10%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at$31.80/barrel, up 0.47%.
On the Earnings Calendar:
Walmart reported strong quarterly earnings.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were solidly higher overnight. Japan (Nikkei 225) up 1.49%, Shanghai up 0.81%, Hong Kong (Hang Seng) up 1.98%
Major European markets were mixed in their session. German (DAX) up 0.15%, France CAC 40 down 0.89%, London FTSE 100 down 0.77%.
Market And Sector Dynamics
Markets opened with modest losses. The Dow fell 70 points, Nasdaq down 2 points, and the S&P down 7 points. After yesterday's massive bull run, investors seems inclined to take a pause, at least until the hear what Fed Chair Powell, and Treasury Secretary, Steven Mnuchin has to say when they testify before the Senate Banking Committee, later this morning.
Investors also learned this morning, that Walmart is ditching Jet, the online retailed that the company bought in 2016 for $3.00 Billion, to challenge the dominance of the online giant Amazon.
The US 10 Year Bond that ticked up yesterday, is holding at 0.729%, and WTI crude oil is up early, at $33.15/barrel, up 4.18%.
A few minutes after the open, the Nasdaq turned positive, led by big technology stocks, while the Dow fell lower. By noontime the Dow rebounded, nearer to the flat line, and hung out in that narrow range for most of the remaining session, before selling off precipitously, in the final hour of trading.
All eleven S&P sector closed the day lower, led by Energy, Financials, Real Estate, Staples, Utilities, Industrials, Healthcare, Basic Materials, Communication Services, and Consumer Discretionary.
Factors Influencing Today's Market
Fed Chair Powell, and Treasury Secretary Mnuchin testified virtually before the Senate Banking Committee. Both were very positive of a US economic recovery over time.
Walmart reported a strong quarter due to shelter at home online shopping. The company announced it is getting rid of online platform, Jet, the $3 billion business it bought in 2016.
Nearly all States have opened their economies, in some fashion, which is a catalyst for markets. There is also encouraging evidence that consumers are spending on a wider array of products and services.
Asian markets traded nicely higher overnight.
A late report from STAT News questioned the significance of yesterday's clinical trial news from Moderna.
The US 10 Year Bond Yield closed at 0.692%, down 4.71%.
WTI Crude Oil price closed at $32.50/barrel, up 2.14%.
Market Close Volume Traded And Advance Decline Ratio
Markets pulled back some of yesterday's gains in today's session. The Dow lost 390.51 points, Nasdaq fell 49.72 points, and the S&P down 30.97 points. Total NYSE volume traded, a moderate 5.17 billion shares. Declining shares outpaced Advancing shares by 1.58:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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