Thursday's Market Recap - Weak Q2 GDP And Increasing Unemployment Claims Tanked Stocks.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are solidly lower at this hour, indicating that investors make be taking some of their chips off the table. Dow futures are down 236 points, Nasdaq futures down 114 points, and the S&P futures down 32 points. Following Pfizer's announcement, Johnson & Johnson announced the start of its Phase 3 clinical trials for their Covid-19 vaccine this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 0.58% unchanged.
Currency Desk:
Euro dollar: 1.79
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $40.51, down 1.84%.
On the Earnings Calendar:
Apple, Amazon, Facebook, Google, report quarterly earnings after the close today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were down in their sessions. Japan (Nikkei 225) down 0.26%, Shanghai down 0.23%, Hong Kong (Hang Seng) down 0.69%
Major European markets also closed solidly lower. German (DAX) down 3.45%, France CAC 40 down 2.13%, London FTSE 100 down 2.31%.
Market And Sector Dynamics
Markets opened sharply lower today, with the Dow down 311 points, Nasdaq lost 76 points, and the S&P lost 32 points. On the Covid-19 vaccine front, Johnson & Johnson announced that their human clinical trials have have been showing promising result, and Phase 3 trials will start in September.
This definitely lending an element of positive sentiment to the markets, but not nearly enough to counter this morning's weekly data from the Bureau of Labor, showing showing another 1.434 million Americans filed for new Unemployment Benefits, which is casting doubt on any an imminent
economic recovery from this pandemic. Also pressuring markets this morning, is the release economic data showing Q2 GDP fell 32.9%, the worst ever.
Half an hour after the open, the Dow sank to the low of the day, down more than 500 points, but gradually recovered over the session, but remained decidedly in negative territory.
Seven of the eleven S&P sectors were responsible for the days losses, led by Energy, Basic Materials, Financials, Industrials, Real Estate, Healthcare, and Utilities. Technology, Communication Services, and Consumer Discretionary were modestly positive.
Factors Influencing Today's Market
Another 1.434 million Americans filed for new Unemployment Benefits last week, trending in the wrong direction.
Economic reopening in the US is spotty at best as Covid infections and deaths continue to spike.
Second Quarter GDP fell 32.9% vs -5% (Q1), and is the worst on record.
Johnson & Johnson Covid-19 vaccine human trials are on the way, with Phase 3 trials starting in September.
US 10 Year closed closed lower today, at 0.545%, down 5.66%.
WTI crude oil closed below the forty dollar mark today, at $39.92/barrel, down 3.27%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks were mixed, the Dow lost 225.92 points, Nasdaq gained 44.87 points, and the S&P fell 12.22 points. Total NYSE volume traded, a modest 4.27 billion shares. Declining shares outpaced Advancing shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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