Wednesday's Market Recap - Mixed Session: Dow & S&P Falls. Nasdaq Gains.
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are mixed. Dow futures down 23 points, Nasdaq futures up 32 points, and S&P futures down up 2 points. Asian markets closed lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield has ticked a bit lower at 0.83%, down 0.05%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $37.94/barrel, down 2.57%.
On the Earnings Calendar:
None.
In M&A News:
Simon Properties Group terminates deal to by Taubman.
What About The Asian And European Markets?
Major Asian markets were mildly lower. Japan (Nikkei 225) down 1.21%, Shanghai down 0.42%, Hong Kong (Hang Seng) 0.03%.
Major European markets down modestly as well. German (DAX) down 0.70%, France CAC 40 down 0.82%, London FTSE 100 down down 0.10%.
Market And Sector Dynamics
Stock were mixed at the open. The Dow fell 20 points, Nasdaq up 60 points, Nasdaq up 7 points. WTI crude oil is trending lower early, at $38.28/barrel, down 1.67%. The US 10 Year at 0.797%.
Energy, Industrials, and Finance is leading the Dow lower in the early going.
The Dow remained lower for the entire trading session, with the Dow down near 350 points, shortly one hour after the opening bell. The index did turn positive for a brief moment late in the afternoon session, but fell back below the flat line before session close, after the Fed/FOMC Chairman Powell indicated they will leave interest rates at current levels through year 2022, and will use every tool to keep supporting the US economy, and jobs.
Separately, investors are beginning to doubt the markets exuberance on reopening of the economy, as Covid-19 cases spike in Texas, Arizona, Alabama, and a few other states.
Today's sell off was moderate, with ten of the eleven S&P sectors closing with losses, led by Energy, Financials, Industrials, Real Estate, Basic Materials, Utilities, Consumer Discretionary, Communication Services, and Consumer Staples. Technology was moderately higher.
Factors Influencing Today's Market
Fed/FOMC left rates at existing levels, through 2022, and promise to use all tool necessary to support the US economic recovery.
Investor optimism wanes, as new Covid-19 cases spike after some States have reopened.
Simon Properties Group terminates agreement to buy rival Taubman.
May CPI fell minus 0.1% vs minus 0.8% in April.
This week's EIA Petroleum Status Report shows US crude oil inventories grew/build by 5.7 mill. barrels.
WTI crude oil closed the day at $39.60/barrel, up 1.69%.
US 10 Year Bond Yield closed at 0.736%, down 10.62%.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended mixed in today's trading. The Dow lost 282.31 points, Nasdaq gained 66.59 points, and the S&P fell 17.04 points. Total NYSE volume traded, a moderately heavy 6.61 billion shares. Declining shares outpaced Advancing shares by 2.69:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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