Friday's Market Recap - Earning Are Strong But Stocks Plunged As US Covid-19 Cases Rise.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are all lower this morning, with Dow futures down 271 points, Nasdaq futures down 145 points, S&P futures down 32 points. Ahead of the Presidential elections on Tuesday, investors appear to be taking some chips off the table, until after the elections. Lately, the market has been reluctant to reward companies that report strong Q3 earnings. In fact, some have been punished. Rising Covid-19 infections has also been a big worry for investors as well.
On The Bond Desk:
The US 10 Year Bond Yield at 0.84%, up 0.06%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $35.99/barrel, down 0.50%.
On the Earnings Calendar:
Apple, Amazon, Alphabet, Facebook, Twitter all reported earnings after the bell yesterday evening. All these companies beat earnings and revenues, but only Alphabet (GOOG) managed to end in positive territory today.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets were solidly lower today. Japan (Nikkei 225) lost 1.56%, Shanghai fell 1.52%, Hong Kong (Hang Seng) fell 1.96%
Major European markets were mixed. German (DAX) down 0.36%, France CAC 40 up 0.54%, London FTSE 100 down 0.08%.
Market And Sector Dynamics
Stocks opened the trading session triple digits lower. The Dow lost 117 points, Nasdaq lost 90 points, and the S&P lost 17 points. WTI crude fell early at $35.86/barrel, down 0.97%, and the US 10 Year Bond down 0.840%.
Markets were volatile and negative territory for the entire trading session, traversing a very wide range, with the Dow down more than 500 points, half an hour after the opening bell, and down only 150 shortly before the close.
In today's selloff nine of the eleven S&P sectors closed with losses, led by Consumer Discretionary, Technology, Communication Services, Utilities, Real Estate, Consumer Staples, Basic Materials, and Healthcare.
Factors Influencing Today's Market
Mounting Covid-19 infections across the US, and a second round of shutdowns in Europe worry investors.
Markets are now discounting strong Q3 earnings, to focus on uncertainty about the election on Tuesday.
Exxon is cutting 1900 jobs here in the US and abroad, as crude oil prices tumble.
Asian and European markets ended the day lower.
US 10 Year Bond Yield closed at 0.874%, up 5.09%.
WTI crude oil closed at $35.75/barrels, down 1.05%.
This week's Baker Hughes US Oil Rig count gained 6 rigs for a total of 211.
Market Close Volume Traded And Advance Decline Ratio
Stocks finished lower in today's trading, and lower for the month of October. The Dow lost 157.51 points, Nasdaq lost 274 points, and the S&P fell 40.15 points. Total NYSE volume traded, a moderate 4.87 billion shares. Declining shares outpaced Advancing shares by 1.57:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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