Monday's Market Recap - Lingering Fear Of Higher Interest Rates And Inflation Dragged Stocks Lower.
- May 16, 2021
- 2 min read
What is The Premarket Telling Us?
May 17, 2021 7:30 AM.
Stock futures are mostly lower, to begin the first trading day of the week. Dow futures were down 143 points, Nasdaq down 56 points, and the S&P down 16 points.
On The Bond Desk:
The US 10 Year Bond Yield @ 1.635%, down 0.033%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.40
Crude Oil:
WTI crude oil futures at $65.09/barrel, down 0.43%.
On the Earnings Calendar:
As first quarter earnings season draws to a close, this week we will have major retailers, Target, Walmart, Home Depot, and Lowe's reporting.
In M&A News:
AT&T has announced a deal to spin off Warner Communication in a merger deal Discovery Network.
What About The Asian And European Markets?
Major Asian markets closed the day mixed. Japan (Nikkei 225) down 0.92%, Shanghai up 0.78%, Hong Kong (Hang Seng) up 0.59%.
Major European markets ended lower. German (DAX) down 0.13%, France CAC 40 down 0.28%, London FTSE 100 up 0.15%.
Market And Sector Dynamics
Stock opened the new trading session of the week lower. The Dow fell 9.7 points, Nasdaq fell 102 points, and the S&P fell 9.33 points. WTI crude oil got off to a modest positive start at $65.52/barrel, up 0.23 points, and the US 10 Year Bond Yield hovered at 1.64%, up 5 basis points.
Markets traded lower for the entire session, as investors grappled with the lingering effects inflation and rising interest rate fears. Even with first quarter earnings season handily surpassing analyst expectations, markets failed to move higher, opting instead to sell off, particularly the high growth technology stocks. Stocks did rebound off the lows, in the afternoon session to close modestly lower.
An overview of today's sector performance showed seven of the eleven S&P sectors ended the session lower, led by Communication Services, Utilities, Technology, Industrials, Healthcare, Consumer Staples, and Consumer Discretionary. Energy, Basic Materials, and Financials, were higher, and Real Estate was flat.
Factors Influencing Today's Market
AT&T announce an agreement today to combine its Warner Media with Discovery, in a cash, stock and debt deal worth $43 billion. AT&T shareholders would receive 71% of the company, with Discovery shareholders receiving the remaining 29%.
Asian markets ended their session mixed, while European stocks ended lower.
US 10 Year Bond Yield ended today at 1.652%, up 1.14%.
WTI crude oil ended the day at $66.39/barrel, up 1.31%.
Market Close Volume Traded And Advance Decline Ratio
Markets sold off today on lingering fear about rising interest rates and inflation. The Dow lost 54.34 points, Nasdaq lost 50.93 points, and S&P lost 10.56 points. Total NYSE volume traded, a modest 4.19 billion shares. Advancing shares just outpaced Declining shares by 1.11:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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