Thursday's Market Recap - Renewed Tensions Between The US And China Dominated Markets Today.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are decidedly lower at this early hour. Dow futures down 146 points, Nasdaq down 53 points, and the S&P up 18 points. Asian markets were mostly lower in their sessions. Initial jobless claims will be the focus on interest this morning, and that report will released at 8:30 AM.
On The Bond Desk:
The US 10 Year Bond Yield at 0.68%,down 0.03%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $34.23/barrel, up 2.21%.
On the Earnings Calendar:
Retailer, TJMax missed estimates, but report strong sales at reopened stores.
Electronics retailer, Best Buy did beat earnings and revenue estimates, but both items were down in year over year comparison.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets fell modestly overnight. Japan (Nikkei 225) fell 0.21%, Shanghai down 0.55%, Hong Kong (Hang Seng) down 0.49%.
Major European markets were all down in their session. German (DAX) down 1.41%, France CAC 40 down 1.15%, London FTSE 100 down 0.86%.
Market And Sector Dynamics
Stock opened barely lower, with the Dow down 30 points, Nasdaq up 4 points, and the S&P was down 1 point, as investors digest this morning's Initial Jobless Claims report which showed another 2.430 million new claims, bringing the total to 38 million claim over the nine week period.
Crude oil is continuing its upward momentum. WTI Crude oil at 34.39/gallon, up 2.81%, early.
Markets returned to positive territory shortly after the open, with the Dow reaching a high of about 135 points, one hour after the opening bell. One hour later, the Dow was down again, around 200 points. Markets pulled back from the lows a short while later, hanging out in a tight range just below the flat line.
The main concern for markets today was the renewed tensions between the US administration and China, after the US Senate passed legislation yesterday which could result in Chinese companies being delisted from US stock exchanges, and could potentially affect investor favorites, like Alibaba, Tencent, Baidu, and others. As would be expected China has promised counter measures, setting up a renewed trade war.
Ten of the eleven S&P sectors closed the session with losses, led by Energy, Technology, Consumer Staples, Utilities, Basic Materials, Healthcare, Real Estate, Communication Services, and Financials. Industrials closed with modest gains.
Factors Influencing Today's Market
Escalating new tensions between US and China over Covid-19 outbreak.
Another dismal initial jobless claims report showing 2.438 million new claims.
Asian and European markets ended with losses.
US 10 Year Bond Yield closed at 0.680%,down 1.42%.
WTI Crude Oil price closed at $33.92/barrel, up 1.28%.
April Existing Home Sale fell 4.33 million vs 3.25 million. (the lowest read ever).
Better than expected earnings results from electronics retailer Best Buy.
TJMax missed earnings estimates but but reported strong sales from reopened stores.
Market Close Volume Traded And Advance Decline Ratio
Markets pulled back moderately in today's trading. The Dow lost 101.78 points, Nasdaq lost 90.90 points and the S&P lost 23.10 points. Total NYSE volume traded, a modest 5.06 billion shares. Advancing shares outpaced Declining shares slightly better than even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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