Tuesday's Market Recap - Investors Fear Second Covid-19 Wave Could Derail Economy.
What is The Premarket Telling Us?
7:45 AM.
US stock futures are looking weak at this hour, suggesting a down open. Dow futures down 572 points, Nasdaq futures up 49 points, and S&P futures up 8 points. Asian markets ended lower.
On The Bond Desk:
The US 10 Year Bond Yield at 0.67%, down 0.02%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.28
Crude Oil:
WTI crude oil futures $39.50/barrel, up 0.74%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets lower.. Japan (Nikkei 225) closed for holiday, Shanghai lost 1.29%, Hong Kong (Hang Seng) lost 0.98%.
Major European markets ended mixed. German (DAX) up 0.41%, France CAC 40 down 0.41%, London FTSE 100 up 0.43%.
Market And Sector Dynamics
Stocks opened moderately higher with the Dow up 28 points, Nasdaq gained 90 points, and the S&P gained 15 points. WTI crude oil started higher up 0.99%, at $39.70/barrel, and the US 10 Year Bond Yield hovered at 0.672%.
Consumer Discretionary, and Technology were the early market leaders, and financials were under pressure. US economic data has been mixed as the US seeks to reopen after the severe effects of the pandemic shutdown. This morning Existing Home Sales for August came in at 6 million units vs the 5.96 million units consensus estimate, but less that the more than 20% gains recorded in June and July.
Rising Covid-19 infection rates in Europe, including the UK, has led Prime Minister Boris Johnson to place further restruction on the public and businesses, with a promise to include more drastic step, to get the virus to reduce the rate of infections. Rising Covid-19 rates here in the US is great concern to investors, and has led to fears we could see a second phase of infections, necessitating, further disruptions in business activity, and stall the pace of reopening.
Market failed to hold on to the gains of the morning, with the Dow turning negative by midmorning, and hitting the intraday lower, Dow down 158 points, shortly before noon, at the low of the day.
Markets recovered during the afternoon session, gaining momentum into the close.
In today's rally, eight of the eleven S&P sectors closed with gains, led by Consumer Discretionary, Communication Services, Technology, Real Estate, Industrials, Consumer Staples, Utilities, and Basic Materials. Energy, Financials, and Healthcare traded lower today.
Factors Influencing Today's Market
The UK PM, Boris Johnson has put in place new restrictions as covid-19 cases rise in that country.
Rising covid-19 cases in many US States causing fear among investor that reopening of the US economy could stall.
US housing economy continues to be healthy, as August existing home sales rose 6 million vs 5.96 million estimate.
Major Asian markets were lower, while Japan enjoyed a market holiday.
US 10 Year Bond Yield closed at 0.671%, up 0.25%.
WTI crude oil closed today at $39.60/barrel, up 0.64%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, all the indexes were higher. The Dow gained 140.48 points, Nasdaq rose 184.84 points, and the S&P gained 34.51 points. Total NYSE volume traded, a modest 40.03 billion shares. Advancing shares outpaced Declining shares by 1.29:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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