Thursday's Market Recap - Dow & S&P Declines On Disappointing Claims Number And Fed Fears.
- cashtonsaunders
- Jun 16, 2021
- 2 min read
What is The Premarket Telling Us?
June 17, 2021 7:10 AM.
US stock futures are indicating that yesterday's declines following announcement of the FOMC's policy decision, will continue today. Dow futures are down 91 points, Nasdaq futures down 60 points, and S&P futures down 12 points. Asian markets ended their day mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 1.557%, down 1.2%.
Currency Desk:
Eurodollar: 1.19
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $71.81/barrel, down 0.47%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets finished their session mixed. Japan (Nikkei 225) lost 0.93%, Shanghai up 0.21%, Hong Kong (Hang Seng) up 0.43%.
Major European markets also ended mixed. German (DAX) up 0.11%, France CAC 40 up 0.20%, London FTSE 100 lost 0.44%.
Market And Sector Dynamics
Markets began today's trading session mixed, as investors attempted to digest yesterday's Fed/FOMC decision, where they left interest rates unchanged, and also will continue their bond buying programs. The Dow gained 12 points, Nasdaq lost 6 points, and the S&P gained a fraction 0.74 point. WTI crude oil was off to a modestly higher start at $72.23/barrel, up 11%, and the US 10 Year Bond ticked lower to 1.533%, down 1.6 basis points.
The Dow slipped lower a few minutes after the open and failed to return to positive territory for the rest of the session, as markets pondered the Fed's action yesterday. Most investors and experts believe that Fed Chair, Jerome Powell, in his post decision press conference handled the situation superbly, while others believed the Fed will not be able to control interest rates, if they don't begin tapering their bond buying shortly.
In comments to CNBC this morning, hedge fund manager David Tepper, from Appaloosa LP., stated that the Fed is handling the situation well, and the US stock markets are fine.
The sell of was fairly broad-based among Dow 30 type stocks. At the low of the day, around 12:30 PM the Dow was down 380 points, but recovered some of those losses during the remainder session.
Seven of eleven S&P sectors ended the day with gains, led by Technology, Healthcare, Consumer Discretionary, Communication Services, Utilities, Consumer Staples, and Real Estate. Energy, Financials, Basic Materials, and Industrials suffered heavy losses in the session.
Factors Influencing Today's Market
Investor continued to ponder the merits of yesterday's Fed/FOMC policy decision.
This week's Initial Jobless Claims number came in disappointingly, higher than expected at 412,000 vs 360,000 estimated.
US 10 Year Bond Yield closed at 1.511%, down 4.11%.
WTI crude oil ended the day at $71.03/barrel, down 1.55%.
Major Asian and European markets ended mixed.
Market Close Volume Traded And Advance Decline Ratio
Today, stocks ended mixed, with the Dow down 210.22 points, Nasdaq went the other was, up 121.67 points, and the S&P fell 1.84 points. Total NYSE volume traded, a moderate 5.32 billion shares. Declining shares outpaced Advancing shares by 1.86:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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