Thursday's Market Recap - A Moderate Selloff As US Covid-19 Cases And Hospitilazions Rise.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are mixed at this hour. Dow futures down 151 points, Nasdaq futures up 55 points, and S&P futures fell 5 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.96%, down 0.01%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $41.56/barrel, up 0.27%.
On the Earnings Calendar:
Cisco and Disney report quarterly earnings after the closing bell.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) up 0.68%, Shanghai down 0.11%, Hong Kong (Hang Seng) down 0.22%.
Major European markets closed lower. German (DAX) down 1.24%, France CAC 40 down 1.52%, London FTSE 100 down 0.68%.
Market And Sector Dynamics
Stocks got off to a lower start this morning. The Dow fell 170 points, Nasdaq up 15 points, and the S&P down 10 points. WTI crude oil started higher at $41.82/barrel, up 0.94%, and the US 10 Year Bond has returned to the point nine handle, at 0.918%.
Stocks hovered at the Dow down 100 point level for most of the morning and early afternoon session, but trended lower shortly before 2:00 PM, and held that level for a while, before falling to the intraday low, Dow down near 500 points half an hour before the closing bell. Stocks did reclaim a fraction of those losses in the closing minutes of trading.
Investors were attempting to decipher if the recent rotation away from big technology companies to value and small-cap assets is real. In the last six months, markets have experienced a similar periods of rotation, only to see big technology growth stock retake the lead and surge, taking markets higher.
The continued escalation of Covid-19 infections and hospitalizations across the US, leading some cities place restrictions on businesses, like bars, gyms, and restaurant suggests that if things don't improve, there could be further lockdown. This could further slow the economic recovery.
Today's market downturn was broad-based, with all eleven S&P sectors ending the day with moderate losses, led by Energy, Basic Materials, Utilities, Financials, Consumer Discretionary, Industrials, Real Estate, Technology, Healthcare, and Consumer Staples.
Factors Influencing Today's Market
The continued rise in Covid-19 infections and hospitalizations across the US is a worry for investors.
Asian markets were mixed, while European markets were down.
US 10 Year Bond Yield closed at 0.883%, down 9.59%.
October's Consumer Price Index (CPI) came in flat (0) vs 0.2% estimates.
Last week's Initial Jobless Claims report shows 709,000 Americans filed for new unemployment benefits.
WTI crude oil closed at $41.12/barrel, down 0.80%.
This week's EIA Petroleum Status Report shows US oil inventory grew 4.3 million barrels vs a drawdown of -8 million barrels in the prior week.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's trading the Dow fell 317.46 points, Nasdaq fell 76.84 points, and the S&P lost 35.65 points. Total NYSE volume traded, a moderate 4.96 billion shares. Declining shares outpaced Advancing shares 3.17:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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