Friday's Market Recap - Stock Tumble As President Trump Tests Positive For Covid-19.
Updated: Oct 4, 2020
What is The Premarket Telling Us?
7:00 AM.
US stock futures are tanked overnight after an announcement that the President and First Lady tested positive for Covid-19. Stock futures were hit hard overnight but moderated as markets approach the start of trading.
On The Bond Desk:
The US 10 Year Bond Yield at 0.682%, up 0.03%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $38.60/barrel, down 0.03%.
On the Earnings Calendar:
None
In M&A News:
None.
Major Asian markets ended their session mixed. Japan (Nikkei 225) fell 0.67%, Shanghai on holiday, Hong Kong (Hang Seng) on holiday.
Major European markets. German (DAX) down 0.33%, France CAC 40 up 0.02%, London FTSE 100 up 0.39%.
Market And Sector Dynamics
Markets were severely depressed at the opening bell. The Dow fell 293 points, Nasdaq down 199 points, and the S&P down 42 points. Investors are responding to surprising new overnight, that the President and First Lady have tested positive for Covid-19, and are being quarantined at the White House. Reports are that the President has a cough, mild fever, and fatigue.
After a volatile trading session in the morning, where the Dow hit the low of the day down 434 points, the markets rebounded rapidly, almost back to neutral, shortly after noontime, and held at that level for most of the remaining session, before, losing some traction, shortly before the close.
Today's trading was fairly balanced, with six of the eleven sectors closing with gains, led by Real Estate, Utilities, Industrials, Energy, Basic Materials, and Financials. Technology, Communication Services, Consumer Discretionary, Healthcare, Consumer Staples.
Factors Influencing Today's Market
President Trump and the First Lady test positive for Covid-19 very early this morning, and are in quarantine.
Investors worry about the President's health and what that means for the country.
US 10 Year Bond closed at 0.704%, up 3.64%.
WTI crude oil closed at $37.17/barrel, up0.32%.
This week's Baker Hughes US Oil Rig count rose 6 rigs to 189 total.
Market Close Volume Traded And Advance Decline Ratio
When the markets ended, stocks were lower with the Dow down 134.09 points, Nasdaq dived 251.49 points, and S&P fell 32.36 points. Total NYSE volume traded, a modest 4.00 billion shares. Advancing shares outpaced Declining shares by 1.70:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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