Tuesday's Market Recap - As Covid-19 Spreads Across The US Reopening Slows.
What is The Premarket Telling Us?
7:15 AM.
US stock futures are mildly lower at this hour, indicating we could have a lower open. Dow futures are down 72 points, Nasdaq futures down 30 points, and S&P futures down 7 points.
In the overnight session, Asian markets ended mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 0.61%, up 0.02%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at$41.43/barrel, down 0.41%.
On the Earnings Calendar:
3M, Raytheon, and Pfizer beats both quarterly earning and revenue expectations.
McDonald's missed quarterly earnings, but beat revenue expectation.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 0.26%, Shanghai up 0.71%, Hong Kong (Hang Seng) gained 0.69%.
Major European markets close mixed. German (DAX) slipped 0.03%, France CAC 40 down 0.22%, London FTSE 100 gained 0.40%.
Market And Sector Dynamics
Markets opened the trading day mildly lower. The Dow fell 60 point, Nasdaq down 24 points, and the S&P lost 4 points. WTI crude is mildly lower early at $41.24/barrel, down 0.84%, and the US 10 Year Bond at 0.592%. 3M and McDonald's are weighing heavily on the Dow due to weaker than expected earnings report, this morning. D R Horton, the homebuilder that reported strong results this morning is surging in early trading.
Stocks continued to fall after the open, the Dow falling to 185 points, around 10:00 AM, before rebounding to the opening lows. Stocks hung out at those levels for most of the remaining session before heading lower late in the afternoon session, and ended at the low of the day.
Eight of the eleven S&P sectors closed the session with losses, in today's selloff. Basic Materials, Energy, Consumer Discretionary, Technology, Communication Services, Industrials, Financials, Healthcare. Real Estate, Utilities, and Consumer Staples.
Factors Influencing Today's Market
Better than expected quarterly earnings from 3M, Raytheon, and Pfizer. The companies all beat Covid lowered analyst estimates for both earnings and revenues. While McDonald's missed earnings.
US Administration inks $750 million deal with old camera maker, Kodak, to provide Covid testing reagents and other supplies.
Asian and European markets closed mixed.
US 10 Year Bond closed at 0.579%, down 5.87%.
WTI crude oil ended the day at $41.04/barrel, down 1.35%.
July Consumer Confidence came in short of consensus at 92.6 vs 98.3 (June revised).
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, all the indices were solidly lower. The Dow sank 205.49 points, Nasdaq fell 134.18 points, and the S&P lost 20.97 points. Total NYSE volume traded, a modest 4.06 billion shares. Declining shares outpaced Advancing shares by 1.19:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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