Wednesday's Market Recap - Stocks Lost Ground Today As The Feds Minutes Signal A Concern For The
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly elevated, ahead of the opening bell. Dow futures are up 52 points, Nasdaq futures up 16 points, Nasdaq futures up 6 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.67%, down 0.01%.
Currency Desk:
Euro dollar: 1.19
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $42.54/barrel, down 0.82%.
On the Earnings Calendar:
Target store reported blowout 2nd. quarter results with sales soaring 24.30%. Company shares are up more than 8% in the premarket.
Lowe's also reported strong second quarter results, with a per share earnings up 24%.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed overnight. Japan (Nikkei 225) added 0.26%, Shanghai fell 1.24%, Hong Kong (Hang Seng) fell 0.74%.
Major European markets higher across the board today. German (DAX) gained 0.74%, France CAC 40 up 0.79%, London FTSE 100 up 0.58%.
Market And Sector Dynamics
Markets were modestly higher at the open, with the Dow up 42 points, Nasdaq up 9 points, and S&P up 5 points, led by blowout earning from Target, and Lowe's, reporting before the start of trading. Stock climbed higher after the open with the Dow hitting an intra-day high of 130 points shortly after 10:00 AM. The market traded slightly below that level for most of the session, before turning lower, just after 2:00 PM when the Fed/FOMC released the minutes of its last meeting, which showed that they seemed overly worried about the pace economic recovery from the current pandemic recession. Although the stock market has been rebounding aggressively from the March 23rd. low, economic recovery has slowed.
Shares of Apple rallied today, becoming the first US company to reach a market cap of two trillion dollars, intraday.
In response stocks sold off in the last half hour of trading to close at the low of the day. All eleven S&P sectors closed with modest losses, led by Real Estate, Energy, Consumer Staples, Consumer Discretionary, Communication Services, Healthcare, Basic Materials, Utilities, Industrials, Technology, and Financials.
Factors Influencing Today's Market
Release of minutes of the last Fed/FOMC meeting suggest they are concerned about the economy.
Strong second quarter earnings results from Target and Lowe's before the bell this morning.
Asian markets ended mixed, while European markets ended moderately higher in their session.
US 10 Year Bond Closed the day at 0.685%, up 2.18%.
WTI crude oil closed mildly lower today at $42.84/barrel, down 0.12%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell 1.6 million barrels.
Market Close Volume Traded And Advance Decline Ratio
Markets ended moderately lower today. The Dow lost 85.19 points, Nasdaq lost 64.38 points, and the S&P lost 14.93 points. Total NYSE volume traded, a light 3.72 billion shares. Declining shares outpaced Advancing shares by 1.50:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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