Monday's Market Recap - Dow Tanks More Than 500 Points On Fear Of Rising Covid Infections.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are sharply negative, with Dow futures down 190 points, Nasdaq futures down 148 points, and S&P futures down 51 points. Asian market traded lower overnight.
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 $40.27/barrel, up 2.04%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed down. Japan (Nikkei 225) closed for holiday, Shanghai down 0.63%, Hong Kong (Hang Seng) down 2.06%.
Major European markets were sharply lower. German (DAX) fell 4.37%, France CAC 40 down 3.74%, London FTSE 100 down 3.38%.
Market And Sector Dynamics
Markets were down sharply at the open. The Dow fell 509.72 points, Nasdaq fell 14.48 point, and the S&P fell 38.41 points. A slew of varying factors are at play in the markets this morning. First, the passing of the loved, and revered Supreme Court Judge, Ruth Ginsberg, (The Notorious RBG) at age 87, over the weekend. She has been a liberal legal stalwart on the court, protecting the rights of individuals, protecting abortion rights, woman's rights. As a result of her passing the judicial balance on the court is now five conservatives vs three liberals, which could leaves the Affordable Care Act (Obamacare), as well as the other protections above, at risk of being struck down by this administration.
Senate Majority Leader, McConnell has stated that he will seek a vote on the Presidents nominee, to replace Justice Ginsberg right away. Of course this is contrary to the approach Leader McConnell took when President Obama announced his pick, Judge Merrick Garland to replace Justice Scalia, who died almost 10 months before the 2016 General Election. Then Leader McConnell, refused the give the judge even a hearing, on the basis that it was too close to the election.
The possibility of any additional fiscal stimulus now seems definitely off the table, following the death of Justice Ginsberg, and that's another big worry for markets.
Rising Covid-19 cases in Europe is worrying global markets. An uptick of cases in Britain, France, Spain over the last few weeks, is suggesting second wave of infection, which could require further shutdown in those countries. Cases in the US are also ticking higher in many States, after seeming to level off during August.
Market remained negative for the entire trading session, with the Dow down more than 920 points, but managed to reclaim nearly half of the those losses in the last few minutes to trading.
Today's sell off was broad based and fairly deep, with ten of the eleven S&P sectors ending the day with losses, led by Basic Materials, Industrials, Energy, Real Estate, Financials, Healthcare, Communication Services, Consumer Discretionary, Consumer Staples, and Utilities. Technology was modestly higher in the session.
Factors Influencing Today's Market
The passing of Supreme Court Justice, Ruth Ginsberg.
Additional fiscal stimulus appears to be off the table before the Presidential Elections in Nov.
Rising Covid-19 cases in Britain, France, and Spain could mean a second phase of infections and shutdown.
Both Asian and European markets were lower in their sessions.
US 10 Year Bond Yield closed at 0.669%, down 4.0%.
WTI crude oil price closed at $39.95/barrel, down 2.63%.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session all the major indexes were lower, but well off their intraday lows. The Dow lost 509.72 points, Nasdaq lost 14.48 points, and the S&P fell 38.41 points. Total NYSE volume traded, a modest 4.83 billion shares. Declining shares outpaced Advancing shares by 6:2.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments