Friday's Market Recap - Disappointing Earnings From American Express & Intel Sends Dow Lower.
What is The Premarket Telling Us?
7:00 AM.
On the last trading day of the week, stock futures are modestly positive, pointing to a positive start to the trading session. Dow futures are up 112 points, Nasdaq futures up 14 points, and S&P futures are up 10 points.
No doubt investors will be on stimulus watch today, after Speaker Nancy Pelosi's apparent optimism about a deal yesterday.
On The Bond Desk:
The US 10 Year Bond Yield at 0.85%, up 0.03%.
Currency Desk:
Euro dollar:1.18
UK Pound: 1.30
Crude Oil:
WTI crude oil futures up $40.81/barrel, up 0.42%.
On the Earnings Calendar:
American Express quarterly earnings disappointed investors.
Intel also reported weaker than expected earnings results.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) rose 0.18%, Shanghai down 1.04%, Hong Kong (Hang Seng) up 0.54%.
Major European markets ended moderately higher. German (DAX) gained 0.82%, France CAC 40 up 1.20%, London FTSE 100 up 1.29%.
Market And Sector Dynamics
Optimism about fiscal stimulus saw the markets opening in modestly higher this morning. The Dow gained 40 points, Nasdaq up 15 points, and the S&P was up 10 points. WTI crude oil opened mildly higher as well, at $40.69/barrel, up 0.12%, and the US 10 Year Bond Yield ticked up to 0.860%.
Shares of American Express, and chipmaker Intel are pressuring the Dow early, as both companies missed Q3 earnings expectations, sending their shares lower.
Stocks moved lower shortly after the open, with the Dow falling into negative territory just after 10:00 AM., as hope for fiscal stimulus agreement before the election, faded as the session progressed. The decline continued with the Dow down 210 points, the low of the day, around 1:00 PM. Stocks gradually recovered from that point, but not enough to get back to positive territory.
Today's selloff and afternoon recovery saw nine of the eleven S&P sectors modestly in positive territory, led by Communication Services, Consumer Discretionary, Real Estate, Industrials, Healthcare, Financials, Utilities, and Consumer Staples. Energy, and Financials, were modestly lower.
Factors Influencing Today's Market
Markets sold off as hopes for another fiscal stimulus before the election dims.
American Express and Intel reported disappointing Q3 earnings, sending shares of both companies lower in the session.
Asian markets were mixed, while European markets were solidly higher.
US 10 Year Bond Yield closed at 0.841%, down 2.32%.
WTI crude oil price closed the day at $39.85/barrel, down 1.94%.
This week's Baker Hughes US Oil Rig count was up 12 to 205 total.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed the major markets were mixed. The Dow lost 28.09 points, Nasdaq gained 42.28 points, and the S&P up 11.90 points. Total NYSE volume traded, a light 3.80 billion shares. Advancing shares outpaced Declining shares by 1.72:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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