Thursday's Market Recap - Stocks Tank Despite A Jobs Report That Was Mildly Better Than Expected
What is The Premarket Telling Us?
7:00 AM.
Stock futures moderately lower, after yesterday's strong rally. Dow futures down 37 points, Nasdaq down 104 points, S&P down 14 points. Asian markets closed mixed in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 0.65%, down 0.02%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $40.71/barrel, down 1.93%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) gained 0.94%, Shanghai down 0.58%, Hong Kong (Hang Seng) down 0.45%.
Major European markets traded lower today. German (DAX) down 1.40%, France CAC 40 down 0.44%, London FTSE 100 lost 1.52%.
Market And Sector Dynamics
Stock were mixed at the start of trading, with the Dow modestly up 24 points, Nasdaq down 184 points, and the S&P down 17 points. WTI crude oil trading lower at $40.61/barrel, down 2.17%, and the US 10 Year Bond is at 0.638%.
For a short time at the open the Dow surged around 90 points higher, but then the bears stepped in and took control. Banks were up early, so were industrials, and energy.
Two hours after the open, the Dow was down more than 700 points, and traded in a narrow range in the 600 to 700 point level, and gradually, lost more ground with the Dow down 1025 points. Stock recovered a fraction of those losses shortly before the close.
The downturn was led by nearly all the high flying technology/FAANG stocks, semiconductor/chip companies, Microsoft and many others that have been market leaders since the pandemic selloff.
Today's selloff was broad based, and deep, with all eleven S&P sectors ending the day with losses, led by Technology, Consumer Discretionary, Communication Services, Industrials, Basic Materials, Healthcare, Consumer Staples, Real Estate, Financials, Utilities, and Energy.
Factors Influencing Today's Market
This morning's weekly Jobs Report showed 881K new claims for unemployment benefits, slightly less than the 954K that was estimated. Still 29 million Americans are receiving benefits.
In a surprise move investors decided to take some chips off the table, in a big way today.
Shares of Apple, and Tesla got the sell off started and soon every sector joined in.
US 10 Year Bond Yield closed at 0.636%, down 1.74%.
WTI crude oil price closed at $40.98/barrel, down 1.28%.
Market Close Volume Traded And Advance Decline Ratio
The bear were in full control of the markets today. At the close the Dow sank 807.77 points, Nasdaq tanked 598.34 points, and S&P dived 125.78 points. Total NYSE volume traded, a moderate 4.90 billion shares. Declining shares outpaced Advancing shares better than 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments