Monday's Market Recap - Stock Turned Negative Intra-Day A Fiscal Stimulus Optimism Wanes.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately elevated two and a half before the opening bell, indicating we could have a nice positive start to the trading week. Dow futures are up 194 points, Nasdaq futures up 122 points, and S&P futures up 27 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.74%, up 0.01%.
Currency Desk:
Euro dollar:1.17
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $40.71/barrel, down 0.42%.
On the Earnings Calendar:
International Business Machines IBM reports quarterly earnings results after the closing bell today.
In M&A News:
ConocoPhillips buying Concho Resouces for $9.7 Billion. A stock deal with a 1.5% over Friday's close.
What About The Asian And European Markets?
Major Asian markets were mixed in their sessions. Japan (Nikkei 225) up 1.11%, Shanghai down 0.71%, Hong Kong (Hang Seng) up 0.64%.
Major European markets ended lower. German (DAX) fell 0.42%, France CAC 40 fell .013%, London FTSE 100 lost 0.59%.
Market And Sector Dynamics
Markets got off to a strong positive start, to begin this busy week of corporate earnings. The Dow rose 86 points, Nasdaq gained 64 points, and S&P rose 18 points. WTI crude oil is off to a modest start at $40.99/barrel, up 0.29%, and the US 10 Year Bond sits at 0.771%.
Investors are hanging on a sliver of hope that Speaker Nancy Pelosi, and Secretary Steven Mnuchin, will be able to agree on a fiscal stimulus plan, with the 48 hour window set by the Speaker, to get a deal done before the election. The good news is that both sides are still talking. A merger in the energy patch is also helping markets this morning. ConocoPhillips has announced that it is buying Concho Resources in a stock deal worth $9.7 Billion, a 1.5% premium over Friday's close.
At the high of the morning, the Dow was up 105 points and the session seemed to be shaping up to be risk-on day. Unfortunately, that was short-lived, as the markets gradually fell lower, as fiscal stimulus optimism waned.
Markets continued to decline for the entire session and closed at the low of the session.
Today's selloff was broad-based and pronounced, with all eleven S&P sectors ending the session with gains, led by Energy, Communication Services, Technology, Healthcare, Consumer Discretionary, Financials, Real Estate, Consumer Staples, Industrials, Basic Materials, and Utilities.
Factors Influencing Today's Market
Lingering optimism of a fiscal stimulus deal before the election.
ConocoPhillips buying Concho Resources in a stock deal worth $9.7 Billion.
A possible third wave of Covid-19 infection in many US states is a concern for investors.
Asian markets ended mixed, while European markets were lower.
US 10 Year Bond closed at 0.772%.
WTI crude oil close the day at $40.83/barrel, down 0.26%.
Market Close Volume Traded And Advance Decline Ratio
Despite starting the trading day solidly positive, markets lost steam intraday ending deep in negative territory. The Dow dived 410.39 points, Nasdaq lost 192.67 points, and S&P fell 56.89 points. Total NYSE volume traded, a modest 4.13 billion shares. Declining shares outpaced Advancing shares by 2.68:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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