Thursday's Market Recap - Goldman Sachs Downgrades Apple To Sell And The Markets Tanked.
What is The Premarket Telling Us?
7:00 AM.
Futures are modestly positive at this hour, and ahead this week's job status report due out at 8:30 AM. Dow futures up 109 points, Nasdaq futures up 97 points, and S&P futures up 13 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.60%, down 0.01%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $41.96/barrel, up 0.12%.
On the Earnings Calendar:
Microsoft and Tesla reported better than expected quarterly earnings
Twitter missed Q2 earnings expectations. Earnings and revenues came up short, but user growth was very strong, sending shares of the company higher.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended their session mixed. Japan (Nikkei 225) down 0.58%, Shanghai down 0.24%, Hong Kong (Hang Seng) up 0.82%.
Major European markets were mostly flat in their session. German (DAX) down 0.01%, France CAC 40 down 0.07%, London FTSE 100 added 0.07%.
Market And Sector Dynamics
Markets opened mildly lower, with the Dow falling 49 points, Nasdaq fell 24 points, and the S&P fell 5 points. Investors are a bit cautious early, due in part to today's Bureau of Labor report showing another 1.40 million new claims for unemployment benefits, filed last week.
The markets traded in a narrow range below the flat line for most of today's session, before declining almost precipitously in the final two hours of trading, to close at the low of the day.
Technology stocks bore the brunt of today's losses, starting with shares of Apple, which were downgraded to a sell by Goldman Sachs, and that in turn took down mostly the FAANG stock which had run up aggressively in the last few weeks. Shares of Microsoft also fell hard. Shares of Twitter was one of the standouts today. The company missed both quarterly earnings and revenues, but user growth increased nearly 35% for the quarter, year over year.
Eight of the eleven S&P sectors closed in negative territory today, led by Technology, Consumer Discretionary, Communication Services, Real Estate, Healthcare, Industrials, Basic Materials, and Energy. Consumer Staples, Financials, and Utilities, ended with modest gains.
Factors Influencing Today's Market
This week's Bureau of Labor Jobless Claims Report shows 1.416 million new claims were filed for unemployment benefits last week. The most since March, and more than the 1.30 million estimated.
Microsoft and Tesla beat quarterly earnings expectation, but both traded down in today's session.
Twitter missed earning expectations but user metric was strong, sending shares higher.
The US 10 Year Bond closed lower at 0.577%, down 3.83%.
WTI crude oil closed at $41.11/barrel, down 1.89%.
Asian markets closed lower, while European markets were flat.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks were solidly lower, as shares of technology companies declined. The Dow sank 353.21 points, Nasdaq fell 244.71 points, and the S&P fell 40.36 points. Total NYSE volume traded, a light 4.33 billion shares. Declining shares outpaced Advancing shares by 1.08:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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