Thursday's Market Recap - Stock Decline After Mixed US Supreme Court Rulings.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly mixed this morning, suggesting that the markets may be looking for direction. Dow futures are down 52 points, Nasdaq futures up 47 points, and S&P futures down 2 points. This week's Initial Jobless Claims report is due out this morning, and will help to determine the direction of the markets this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 0.65%, unchanged.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $40.77/barrel, down 0.32%.
On the Earnings Calendar:
None
In M&A News:
Renown retailer, Brooks Brothers, has filed for Chapter 11 Bankruptcy Protection.
What About The Asian And European Markets?
Major Asian markets traded higher. Japan (Nikkei 225) up 0.40%, Shanghai up 1.39%, Hong Kong (Hang Seng) up 0.31%.
Major European markets declined today. German (DAX) slipped 0.04%, France CAC 40 fell 1.21%, London FTSE 100 lost 1.73%.
Market And Sector Dynamics
At the open stocks were mildly higher. The Dow was marginally up 7 points, Nasdaq up 69 points, and the S&P was up 7 points. Technology and China related stocks were leading the charge higher.
WTI crude oil at $40.60/barrel, down 0.76%, while the US 10 Year Bond was steady at 0.665%.
Today's weekly release of initial jobless claims was slightly better than expected, with 1.314 million new claims for unemployment benefits vs the 1.375 million estimated.
Markets took a leg lower around 10:00 AM, after the SCOTUS decision in the case involving the New York District Attorney's office vs the Trump organization. The court ruled that the Trump organisation and others eg. Deutsche Bank, must provide than information to the New York District Attorney's office.
Later in the morning session, the Dow was down just short of 600 points, after digesting both SCOTUS rulings; The earlier NYS case, and the second regarding the The House of Representatives request to have the President Trump's tax returns. Markets recovered a small fraction of those loses in the afternoon session. The bears were really in control today.
Market tone was mostly negative but orderly. Nine of the eleven S&P sectors closed the session with moderate losses, led in order by, Energy, Financials, Industrials, Utilities, Basic Materials, Healthcare, Consumer Staples, and Communication Services. Consumer Discretionary, and Technology were modestly higher.
Factors Influencing Today's Market
Initial Jobless Claims came in a slightly better than expected 1.314 million new claims.
Million of unemployed are still receiving continuing benefits.
New daily increases in Covid-19 infections and hospitalizations continues threatening reclosures in some cities. Arizona, California, Florida an Texas are mostly affected.
The Supreme Court's ruling in cases requiring the President's business and tax records.
Asian markets were higher overnight, while European stock closed in their session.
US 10 Year Bond Yield closed at 0.613%, ticking lower by 7.88%.
WTI crude oil price closed at $39.62/barrel, down 3.13%.
Market Close Volume Traded And Advance Decline Ratio
When stocks closed today, the Dow fell 361.19 points, Nasdaq gained 55.25 points, and the S&P fell 17.89 points. Total NYSE volume traded, a moderate 4.96 billion shares. Advancing shares outpaced Declining shares by 1.43:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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