Tuesday's Market Recap - Major Intraday Reversal After Strong Morning Gains.
What is The Premarket Telling Us?
7:00 AM.
Two and a half hours before trading begins, US stock futures are sharply higher. Dow futures up 278 points, Nasdaq futures up 56 points, and S&P futures up 23 points. Asian markets were mixed in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 0.57%, up 0.01%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $42.55/barrel, up 1.45%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mostly higher overnight. Japan (Nikkei 225) gained 1.88%, Shanghai fell 1.15%, Hong Kong (Hang Seng) gained 2.11%
Major European markets traded solidly higher. German (DAX) gained 2.04%, France CAC 40 up 2.41%, London FTSE 100 up 1.71%.
Market And Sector Dynamics
Stock opened mixed today. The Dow surged 287 points, Nasdaq slumped 31 points, and the S&P was up 12 points. WTI crude oil is also up at $42.78/barrel, up 2.0%, and the US 10 Year Bond has ticked up to 0.635%. Energy and Financials are leading markets early, as another round of asset rotation continues. Investor are moving money out of technology and communication services, and into sectors like industrials, basic materials, which they perceive as better value.
At the high of the day the Dow was up more than 360 points, thirty minutes after the opening bell.
The Dow crossed the 28,000 points, for the first time since February, early in the morning session, and held on at that level for most of the session until shortly after 2:00 PM when the markets started selling off, after comments from Senate Majority Leader, McConnell, seems to dash any hope of the Democrats and the Administration restarting any stimulus negotiations.
By the close of trading the Dow lost all the day's gain, and them some, to close at the low of the day.
In today's selloff nine of the eleven S&P sectors closed with losses, led by Utilities, Real Estate, Technology, Communication Services, Consumer Staples, Healthcare, Consumer Discretionary, Energy, and Basic Materials. Financials, and Industrials, were moderately higher.
Factors Influencing Today's Market
Markets suffer a reversal of fortunes today. After a strong start stocks sold off hard during the afternoon session.
Large growth technology stocks such Apple, Facebook, Alibaba, Netflix lost grown again today, as investor rotate into what they perceive as value oriented stocks.
Comment from Leader McConnel suggests little or no hope for imminent negotiations.
Asian markets were mostly higher, as was the European markets.
US 10 Year Bond Yield closed solidly higher at 0.643%, up 10.80%.
WTI crude oil closed slightly lower at $41.59/barrel, down 0.83%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, the markets were all lower. The Dow lost 104.53 points, Nasdaq fell 185.53 points, and the S&P lost 26.78 points. Total NYSE volume traded, a moderate 4.89 billion shares. Advancing and Declining shares were even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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