Friday's Market Recap - Investors Frustrated With The Lack Of Progress On Fiscal Stimulus Talks.
What is The Premarket Telling Us?
7:30 AM.
Flat describes the status of the futures at this hour. Dow futures are up 13 points, Nasdaq futures up 9 points, and S&P futures up 5 points. Asian markets ended lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.93% up 0.01%.
Currency Desk:
Eurodollar: 1.22
UK Pound: 1.35
Crude Oil:
WTI crude oil futures at $48.40/barrel, up 0.08%.
On the Earnings Calendar:
None to report.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets ended modestly lower, Japan (Nikkei 225) down 0.16%, Shanghai down 0.29%, Hong Kong (Hang Seng) down 0.67%.
Major European markets also ended slightly lower. German (DAX) down 0.27%, France CAC 40 down 0.39%, London FTSE 100 down 0.33%.
Market And Sector Dynamics
Today the markets demonstrated their disappointment with the US Congress, and its failure to negotiate a fiscal stimulus to help Americans who have been laid off, hungry, and about to be evicted from their home, due to the devastating effects of the coronavirus pandemic. After opening with modest gains, markets turned lower a short while later and stayed lower for the rest of the session.
At the open the Dow was up 27 points, Nasdaq rose 40 points, and the S&P was up 2 points. WTI crude oil also opened mildly higher at $48.75/barrel, up 0.81%, while US10 Year Bond hovered at 0.925%.
Another milestone also occurred today as Moderna's Covid-19 vaccine has been approved by the FDA, and will begin shipping out to hospitals and other facilities across the country, to begin vaccinations. This vaccine along with the Pfizer vaccine which was approved last week will increase the number of vaccines available to immunize the population from the virus.
Stocks traded in negative territory for almost the session, only pulling back from the lows shortly before the close of trading.
Seven of the eleven S&P sectors were lower in today selloff, led by Real Estate, Energy, Utilities, Financials, Consumer Discretionary, Technology, and Communication Services. Basic Materials, Consumer Staples, Healthcare and Industrials, were finished modestly lower.
Factors Influencing Today's Market
Failure of the Administration and Congress to negotiate and pass an additional fiscal stimulus package.
Moderna's Covid-19 vaccine was approved by the FDA as will begin shipping out over the weekend.
Asian and European markets ended mildly lower as new covid restrictions are about to be implemented in Europe.
The US 10 Year Bond Yield closed at 0.945%. up1.07%.
WTI crude oil closed today at $49.10/barrel, up 1.53%.
Baker Hughes US Oil Rig Count rose 5 rigs to 253 total.
Market Close Volume Traded And Advance Decline Ratio
US markets ended lower in today's trading. The Dow fell 124.32 points, Nasdaq fell 9.11 points, and S&P fell 13.07 points. Total NYSE volume traded, a heavy 7.01billion shares, as Tesla officially becomes a component of the S&P 500, necessitating all funds that are indexed to the S&P500 to buy Tesla shares. Shares of Tesla begin trading as a component of the S&P on Monday. Declining shares outpaced Advancing shares by 1.36:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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