Monday's Market Recap - Rising US Covid-19 Infection And Failed Stimulus Talks Tanked Markets.
What is The Premarket Telling Us?
8:00 AM.
US stock futures flash is flashing a sea of red at this time, ninety minutes before trading begins. Dow futures are down 296 points, Nasdaq down 97 points, and S&P futures down 35 points. Third-quarter earnings season continues with some big tech companies reporting later this week. Stimulus watch is still ongoing, but most investors now believe it's not likely, we will get a stimulus package before the election, which is nine days away.
Major Asian markets finished mildly lower, but Hong Kong was closed.
On The Bond Desk:
The US 10 Year Bond Yield at 0.84%, down 0.85%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $38.80/barrel, down 2.63%
On the Earnings Calendar:
None
In M&A News:
The Jack Ma and Alibaba connected, ANT Group, raised 34.5 Billion in its IPO roadshow in Asia, valuing the company at $313 Billion. (The biggest IPO).
What About The Asian And European Markets?
Major Asian markets ended lower. Japan (Nikkei 225) up down 0.09%, Shanghai down 0.82%, Hong Kong (Hang Seng) closed today.
Major European markets finished lower today. German (DAX) fell 3.71%, France CAC 40 down 1.90%, London FTSE 100 down down 1.16%.
Market And Sector Dynamics
Markets kicked off the trading session convincingly in negative territory. The Dow sank 305 points, Nasdaq fell 90 points, and the S&P fell 33 points. WTI crude oil got off to a weak start at $38.95/barrel, down 2.26%.
Financials and Energy were the early lagged early. Pressuring markets this morning is the rising number of Covid-19 cases breaking out across the USA. Over the last few days more than 80,000 new Covid cases have been reported daily, and in some Cities hospital resources have been overwhelmed.
The market was also disappointed as hopes for an additional fiscal stimulus before the election is now dead.
Stocks decline steadily throughout the morning and of the afternoon session with the Dow down more than 900 points, shortly around 2:00 PM., before trading off those lows into the close.
The selloff was very convincing, with all eleven S&P sectors ending with solid losses, led by Energy, Industrials, Basic Materials, Communication Services, Financials, Technology, Consumer Discretionary, Consumer Staples, Real Estate, Healthcare, and Utilities.
Factors Influencing Today's Market
Investors disappointed that all hope for any additional fiscal stimulus before the elections have been dashed.
Rising Covid-19 infections across 44 US States an increasing worry for investors.
ANT Group raised $34.5 Billion in its roadshow in Asia, which values the company at $313 Billion.
Asian and European markets traded lower today.
US 10 Year Bond ended the day at 0.803%, down 4.59%.
WTI crude oil ended the day at $38.56/barrel down 3.24%.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, the major indexes were significantly lower. The Dow dived 650.19 points, Nasdaq plunged 189.34 points, and the S&P tumbled 56.89 points. Total NYSE volume traded, a modest 4.03 billion shares. Declining shares outpaced Advancing shares by 7:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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