Thursday's Market Recap - Dow Holds On To Modest Gains But Nasdaq & S&P Falls.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are just below neutral at the hour. Dow futures down 41 points, Nasdaq futures down 5 points, and S&P futures down 11 points. As has been the for the last few weeks investors will be anticipating this morning Initial Jobless Claims report, to gauge the market action today. If it's bigger than expected markets could off.
On The Bond Desk:
The US 10 Year Bond Yield at 0.75%, up 0.07%.
Currency Desk:
Euro dollar: at 1.12
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $36.82/barrel, down 1.21%.
On the Earnings Calendar:
None.
In M&A News:
The Department of Justice (DOJ) has approved the Charles Schwab TDAmeritrade merger.
LVMH has not yet propose any change to the merger agreement.
What About The Asian And European Markets?
Major Asian markets ended mixed today. Japan (Nikkei 225) up 0.36%, Shanghai down 0.14%, Hong Kong (Hang Seng) up 0.17%.
Major European markets were mildly lower. German (DAX) down 0.45%, France CAC 40 down 0.21%, London FTSE 100 down 0.64%.
Market And Sector Dynamics
Markets opened moderately lower to begin the trading day. The Dow fell 95 points, Nasdaq lost 30 points, and the S&P lost 13 points. The US 10 year bond has ticked higher, sitting at 0.782%, and WTI crude oil is up 1.80%, at $36.68/barrel.
This morning the European Central Bank (ECB) announced additional stimulus for the Eurozone, by an adding 600 billion Euros, for a total of 1.35 billion, and extended the program to mid 2021.
In a volatile but orderly session, with the market trading in and out of positive territory. At the high in the morning the Dow was up 106 points, before turning negative in mid-afternoon, Dow down 107 points. By 2:30 PM stock were back to neutral, before sharply declining to its intra-day low Dow down 170 points. In the last few minutes of trading the index made a V shape recovery, to close narrowly in positive territory.
The sell of was mostly moderate, but broad based, with eight of the eleven S&P sectors ending with losses, led by Utilities, Real Estate, Technology, Healthcare, Communication Services, Consumer Staples, Consumer Discretionary, and Energy. Financials, Industrials, and Basic Materials, were lower.
Factors Influencing Today's Market
This week's Initial Jobless Claims fell 1.877 million claims, slightly more than estimates, but less than last week's.
The ECB took action this morning to increase it bond buying program by 600 billion Euros, to 1.35 billion. The also extended the bond buying program to Mid year 2021.
The DOJ has approved the Charles Schwab TDAmeritrade purchase.
The Las Vegas strip begins reopening today, with limited operations, based on Covid-19 guidelines.
The Senate has passed the House bill easing some PPP restrictions for small businesses.
WTI crude oil closed at $37.31/barrel, up 0.97%.
US 10 Year Bond Yield ticked up 10.63%, to close at 0.825%.
Market Close Volume Traded And Advance Decline Ratio
Stock finished the day mixed. The Dow added 11.93 points, Nasdaq fell 67.10 points, and the S&P fell 10.52 points. Total NYSE volume traded, a heavy 6.50 billion shares. Advancing shares outpaced declining by 1.18:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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