Friday's Market Recap - Fed Bank Stress Test And New Covid-19 Outbreaks Sent Stocks Reeling.
What is The Premarket Telling Us?
7:30 AM.
Stocks future are modesty mixed at this hour. Dow futures down 50 points, Nasdaq futures up 14 points, and S&P futures up 3 points. Last evening, after the close the Fed release the results of its annual stress test on banks. It stated that the banks sufficiently padded to withstand the shock of the pandemic. It also requested banks to submit their longer term capital plans, and to cease dividends, and stock buybacks for the third quarter. Investors are definitely trying to digest this news this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 0.67%, down 0.01%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $38.85/barrel, up 0.34%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed in their Friday session. Japan (Nikkei 225) up 1.13%, Shanghai up 0.30%, Hong Kong (Hang Seng) down 0.93%.
Major European markets were mixed as well. German (DAX) down 0.73%, France CAC 40 down 0.18%, London FTSE 100 rose 0.18%.
Market And Sector Dynamics
Markets opened well into negative territory. The Dow fell 144 points, Nasdaq fell 16 points, and the S&P fell 10 points. Today, investor are seriously concerned about the escalating cases of coronavirs infections in the west and southern states of the US, including Arizona, & Texas where hospital ICU beds, are at capacity, leading one city to cancel, elective surgeries, again.
Share of industrial, like Boeing, and Technology higher flyers, like Facebook, Google, Microsoft and others fell during the session. Stock traded in negative territory for the entire session.
Also pressuring markets today was, yesterday evening, the Federal Reserve announced the results of its annual stress test for banks. It stated that the banks are sufficiently padded to handle the shock of the pandemic, but as a precaution ordered banks to reevaluate their longer term capital plans, suspend their dividends, and buybacks for the third quarter.
The sell off was broad bases and intense, with all eleven S&P sectors closed with losses, led by Communication Services, Financials, Energy, Consumer Discretionary, Consumer Staples, Technology, Industrials, Real Estate, Basic Materials, Healthcare, and Utilities.
Factors Influencing Today's Market
Results of Fed's annual stress for banks finds bank were in good standing, but suggested that the banks should limit their dividends and share buybacks during the third quarter.
Rising coronavirus infections and hospitalizations particularly among a now younger Americans between Ages 28 - 45.
Both Asian and European markets closed mixed today.
US 10 Year Bond Yield closed at 0.632%, down 1.28%.
WTI crude oil closed today at $37.86/barrel, down 1.64%.
This week's Baker Hughes US Oil Rig Count fell 1 to 265.
Market Close Volume Traded And Advance Decline Ratio
Markets took a beating in today's session. The Dow lost 730.05 points, Nasdaq down 259.78 points, and the S&P down 74.71 points. Total NYSE volume traded, a heavy 7.82 billion shares. Declining shares outpaced Advancing shares by 4.44:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.so
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