Thursday's Market Recap - Stocks Decline On Falling 10 Year Bond Yield & Fear That China Is Slowing.
- Jul 7, 2021
- 2 min read
What is The Premarket Telling Us?
July 8, 2021 7:30 AM.
Stock futures are pointing to a significantly lower opening this morning. Dow futures are down 474 points, Nasdaq futures down 189 points, and S&P futures down 57 points. Asian markets ended lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.321%, 0.05%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.37
Crude Oil:
WTI crude oil futures at $71.74/barrel, down 0.64%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets closed lower. Japan (Nikkei 225) up 0.88%, Shanghai down 0.79%, Hong Kong (Hang Seng) down 2.89%.
Major European markets also ended lower. German (DAX) down 1.73%, France CAC 40 down 2.01%, London FTSE 100 fell 1.68%.
Market And Sector Dynamics
Markets opened the trading session decidedly lower. The Dow plunged 385 points, Nasdaq fell 228 points, and the S&P lost 54 points. The price of WTI crude oil also fell to $72.03/barrel, down 0.22%, with the US 10 Year Bond ticking lower to 1.294%.
Today's session saw investors reacting to myriad of issues, including, fear that China may be slowing, worry about the US10 Year Bond ticking steadily lower in the last few weeks, and fear that the Covid-19 Delta variant, a more transmissible strain could deter economic activity, in areas of the country, especially in the southern states where vaccinations percentages are relatively very low.
The Dow fell to a morning low shortly after the open, down 550 points, and the Nasdaq was down nearly 350 points. Both indexes rebounded from those lows by midday, and traded in a narrow range until the close of trading. Markets remained in negative territory for the entire session.
Markets were solidly negative during the session, with all eleven S&P sectors ending with losses, led by Financials, Industrials, Basic Materials, Communication Services, Technology, Healthcare, Energy, Consumer Staples, Consumer Discretionary, and Real Estate.
Factors Influencing Today's Market
Investors are fearful that China economy may be slowing.
The Covid-19 Delta variant may be giving some investors pause.
Asian and European markets ended lower in their sessions.
The US 10 Year Bond Yield continues to decline, closing today at 1.294%, down 2.18%.
WTI crude oil close today at $73.24/barrel, up 1.44%.
This week's Initial Jobless Claims rose 373,000 vs 353,000 estimated.
This week's EIA Petroleum Status Report show US crude oil inventories fell -6.9 million barrels, vs -6.7 million barrels in the prior week.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, all the major indexes plunged. The Dow fell 259.86 points, Nasdaq lost 105.28 points, and S&P fell 37.31 points. Total NYSE volume traded, a light 3.39 billion shares. Declining shares outpaced Advancing shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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