Thursday's Market Recap - Stubborn Rise In Covid-19 Infections And Deaths Sends Stock Lower.
What is The Premarket Telling Us?
7:00 AM.
US stock futures is a sea of red this at this juncture. Dow futures down 156 points, Nasdaq futures down 142 points, and S&P futures down 20 points. Asian markets closed lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.63%, up 0.01%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $40.81/barrel, down 0.95%.
On the Earnings Calendar:
Bank of America reported earning before the opening bell, trading performance was a standout.
Netflix reports after the close of trading this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed lower. Japan (Nikkei 225) down 0.76%, Shanghai down 4.50%, Hong Kong (Hang Seng) loss 2.00%
Major European markets were down. German (DAX) loss 0.43%, France CAC 40 down 0.46%, London FTSE 100 down down down 0.67%
Market And Sector Dynamics
Markets opened uniformly lower. The Dow lost 125 points, Nasdaq down 107 points, and the S&P down 20 points. Investors are responding to this week's jobless claims data, showing another 1.30 million new claims for unemployment benefits last week, which is about what was estimated, but also signals how far we have to go to return to full employment. Bank earnings have been good so far, especially in terms of their trading operations, which have done exceptionally well.
The daily, and seemingly out of control rise in Covid-19 cases and deaths here in the US remains a big worry for markets, as are rising tensions between the US and China, over Hong Kong, and also the US Administration's actions blaming China for the outbreak of the coronavirus.
Except for a brief blip in positive territory around midway during morning trading, the Dow remained comfortable in negative for the entire session. At the low, around 3:00 PM the Dow was down nearly 300 points, but reclaimed a portion of those losses shortly before the close.
Six of the eleven S&P sectors ended today with losses, led in order by Technology, Real Estate, Energy, Consumer Discretionary, Healthcare, and Financials. Utilities, Basic Materials, Communication Services, and Consumer Staples,her were modestly higher.
Factors Influencing Today's Market
Another 1.3 million American applied for first time unemployment benefits last week
A consistent stubborn increase in Covid-19 infection and death is occurring across the USA.
Simmering tensions between the US and China over Hong Kong, and the Coronavirus.
Second quarter bank earnings has revealed strong trading performance across the big banks.
Both Asian and European markets closed lower in their sessions.
US 10 Year Bond closed at 0.618%, down 2.38%.
WTI crude oil closed the day at $40.75/barrel,
Retail Sales for June rose 7.5% vs 5.2% expected, but well below the 18.2% in May.
Market Close Volume Traded And Advance Decline Ratio
At the end today's trading all three indices were lower. The Dow fell 135.39 points, Nasdaq lost 66 points, and the S&P fell 10.99 points. Total NYSE volume traded, a light 3.99 billion shares. Declining shares outpaced Advancing shares by 1.18:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Markinet Watch, TD Ameritrade, Yahoo Finance.
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