Friday's Market Recap - Rising Tension In Hong Kong As China's New Security Law For The Terr
What is The Premarket Telling Us?
7:00 AM.
Stock futures are down at the moment as investors globally, attempt to digest the effects of rising tension between US administration and China, as well as new tensions between China and Hong Kong, as China seeks to ramp up its authority over that country. Dow futures down 92 points, Nasdaq futures up 45 points, and S&P down 10 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.68%, unchanged.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $31.71/barrel, down 6.52%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed lower. Japan (Nikkei 225) down 0.80%, Shanghai down 1.89%, Hong Kong (Hang Seng) down 5.56%, as China moves to impose a new security law on Hong Kong.
Major European markets close mostly lower. German (DAX) lost 0.07%, France CAC 40 down 0.02%, London FTSE 100 down 0.37%.
Market And Sector Dynamics
Markets opened the trading day modestly lower. The Dow lost 14 points, Nasdaq down 6 points, and the S&P down 2 points. Investors are balancing the better than expected earnings from China's online giant, Alibaba, that actually beat revenue and earnings estimates, as did chip maker Nvidia.
Rising tensions between the US and China, and China and Hong Kong is a major concern for for markets as well, as is the fear of a new rise in Covid-19 cases, as all 50 States have now reopened in some form.
Markets remained depressed during the morning session, with the Dow down 170 points, an hour after the open, remaining near those depressed levels during the morning session. Stocks gradually, climbed back during the afternoon session to close just short of the flat line.
Market tone was mostly positive, and trading was fairly balanced, with six of the eleven S&P sectors ending the day in positive territory, led by Real Estate, Utilities, Communication Services, Technology, Consumer Staples, and Healthcare. Energy, Financials, Basic Materials, Consumer Discretionary, and Industrials were today's laggards.
Factors Influencing Today's Market
Rising tensions between the US administration and China, and China's initiates a new security law for Hong Kong.
Some concern here in the US that as more State begin to open we could see a new surge in Covid-19 cases.
US 10 Year Bond Yield closed at 0.657%, down 3.34%.
WTI crude oil closed at $33.25/barrel, down 1.98%.
This week's Baker Hughes US Oil Rig count fell 21 rigs to 237 total.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today, markets were modestly mixed. The Dow closed down 8.96 points, Nasdaq gained 39.71 points, and the S&P gained 6.94 points. Total NYSE volume traded, a modest 4.02 billion shares. Advancing shares outpaced Declining shares by 1.29:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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