Thursday's Market Recap - Stock Sold Off But Finished Off The Intraday Lows.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately mixed at this hour. Dow futures up 34 points, Nasdaq futures down 171 points, and S&P futures down 42 points. After cloud data company Snowflake, doubled in its trade debut yesterday, markets seem a bit uncertain about where to go today.
On The Bond Desk:
The US 10 Year Bond Yield at 0.69%, up 0.01%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $40.20/barrel, up 0.10%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were moderately lower. Japan (Nikkei 225) fell 0.67%, Shanghai lost 0.41%, Hong Kong (Hang Seng) lost 1.56%.
Major European markets also closed lower. German (DAX) lost 0.47%, France CAC 40 down 0.69%, London FTSE 100 down 0.47%.
Market And Sector Dynamics
Markets opened in a sea of red this morning, led by an across the board sell off led by mostly by technology stocks. The Dow dived 315 points, Nasdaq fell 244 points, and S&P fell 52 points.
All eleven S&P sector were negative early in the session, and all 30 Dow Components, and all the Nasdaq 100 were at the start.
Last week's Initial Jobless Claims report, released this morning, show another 860,000 Americans filed for new unemployment benefits. Both Republicans, and Democrats, support another round of stimulus to help people, States, and small businesses cope with the pandemic displacement, but there is no tangible sign of an agreement.
There is general consensus that the Fed has done its part, on the monetary policy side, most seem convinced that additional fiscal stimulus is necessary. At his press conference on Wednesday, Fed Chair Powell suggested that further economic recovery was going be slow, and that we might not get back to the economy before the pandemic, until, perhaps 2023. It does now appear that the current volatility in the markets, is the Fed's outlook for recovery, and the uncertainty of a stimulus agreement,
Today, airline company CEOs met at the White House to press for another round of Cares Act stimulus grants, aimed at staving off layoffs of currently furloughed employees, until March 2021. Obviously, with the vast reduction of business, the airlines will need to be right sized, necessitating the need to layoffs. All of these issues are at play in the markets.
Today's selloff was fairly broad based with eight of the eleven S&P sectors ending the day down, led by Real Estate, Communication Services, Consumer Discretionary, Financials, Technology, Utilities, Consumer Staples, and Healthcare. Basic Materials, Industrials, and Energy finished modestly higher.
Factors Influencing Today's Market
Last week's Initial Jobless Claims report shows another 860,000 people filed for new unemployment benefits.
Fed/FOMC projects slow economic recovery, not before year 2023.
Markets anticipating new round of fiscal stimulus but no negotiations are taking place in Washington.
Airline executive met at the White House today to plead for more Care Act grants.
Technology sold off again today as some investors feel these may be overbought.
Asian markets and European markets traded lower in their sessions.
US 10 Year Bond Yield closed at 0.689%, down 1.40%.
WTI crude oil price closed at $40.97/barrel, up 2.02%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today markets were all down, although well off their intraday levels. The Dow fell 130.40 points, Nasdaq lost 140.19 points, and the S&P lost 28.48 points. Total NYSE volume traded, a moderate 4.35 billion shares. Declining shares outpaced Advancing shares by1.57:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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