Thursday's Market Recap - Bond Yields Up Stocks Sells Off Again.
- Mar 4, 2021
- 2 min read
What is The Premarket Telling Us?
8:00 AM.
Stock futures are mildly in the red. Dow futures down 16 points, Nasdaq futures down 29 points, and S&P futures down 7 points. Asian markets closed with losses overnight.
On The Bond Desk:
The US 10 Year Bond Yield at at 1.47%, up 0.05%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $61.50/barrel, up 0.36%.
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 lower. Japan (Nikkei 225) lost 2.13%, Shanghai slipped 2.05%, Hong Kong (Hang Seng) lost 2.15%.
Major European markets closed with losses. German (DAX) down 0.17%, France CAC 40 up 0.59%, London FTSE 100 down 0.37%.
Market And Sector Dynamics
The markets opened mixed, with the Dow up 52 points, Nasdaq down 8 points, and the S&P gained 6 points. WTI crude oil started off higher at $62.25/barrel, up 1.62%, and the US 10 Year Bond sat at 1.472%.
Stock hung out around the flat line for most of the morning, and early afternoon, but turned decidedly lower after dovish comments from Fed Chair, Jerome Powell, acknowledging the pace of interest rate rise over the last few months, but suggests it will be transitory. Investors clearly felt differently, sending markets to the low of the day around 2:00 PM, the Dow down 720 points. The Dow recovered half of those losses during the remaining recession.
In today's sell-off nine of the eleven S&P sectors ended the day with losses, led by Technology, Basic Materials, Consumer Discretionary, Industrials, Healthcare, Financials, Real Estate, Consumer Staples, and Utilities. Energy and Communication Services were higher.
Factors Influencing Today's Market
The US 10 Year Bond ticked higher again after the Fed Chairman Jerome Powell dovish comments.
This week's Initial Jobless Claims show 745K new claims for unemployment benefits, slightly less than the 760K estimated.
US 10 Year Bond Yield close today at 1.557%, up 4.91%
WTI crude oil closed today at $64.22/barrel, up 4.80%.
Both the Asian and European markets ended with losses.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the markets tumbled lower. The Dow sank 345.95 points, Nasdaq tanked 274.28 points, and the S&P lost 51.25 points. Total NYSE volume traded, a very heavy 7.16 billion shares. Declining shares outpaced Advancing shares 3.50:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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