Thursday's Market Recap - Stocks Decline On Weaker Than Expected Jobless Claims Data.
- Dec 10, 2020
- 2 min read
What is The Premarket Telling Us?
7:30 AM.
Stock futures are all flashing red this morning, although, only moderately so. Dow futures are down 27 points, Nasdaq down 75 points, and the S&P was down 9 points. Asian markets were mixed in overnight trading.
On The Bond Desk:
The US 10 Year Bond Yield at 0.94%, up 0.03%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $46.03/barrel, up 1.12%.
On the Earnings Calendar:
None.
In M&A News:
AirBNB IPO started trading today. The IPO was priced at $68/share, after the close of trading yesterday evening.
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) down 0.23%, Shanghai rode 0.04%, Hong Kong (Hang Seng) fell 0.35%.
Major European markets were also mixed. German (DAX) down 0.33%, France CAC 40 up 0.05%, London FTSE 100 up 0.54%.
Market And Sector Dynamics
Stocks opened the trading day moderately lower. The Dow lost 110 points, Nasdaq fell 73 points, and the S&P fell 16 points.
Today's session was mostly negative and trading was choppy. Markets remained in negative territory for the entire session. Like yesterday, the first trading day for the Doordash IPO, today's session was dominated by the IPO of Airbnb, which was priced at $68/share last evening, and began it first trade today at $146/share, a more than 100% price appreciation.
As usually happens when IPO overperform at this level, many investors and pundit question whether its a market top, suggesting the markets may be overpriced and ready for a correction.
Over the last few trading days markets have been holding out hope for a fiscal stimulus agreement from the US Congress, but as hopes fade of that happening before the new Admistration takes off, stocks have sold off, albeit only mildly. Markets recovered from the lows late in the afternoon session, but still below the flat line.
Eight of the eleven S&P sectors ended the session with losses today, led by Industrials, Basic Materials, Utilities, Consumer Staples, Real Estate, Communication Services, Healthcare, and Consumer Discretionary.
Energy, Financials, and Technology closed with gains.
Factors Influencing Today's Market
Airbnb IPO started trading today.
Both Asian, and European markets ended the day mixed.
US 10 Year Bond Yield closed at 0.906%, down 3.35%.
WTI crude oil closed at $47.09/barrel, up 3.45%.
This week's Initial Jobless Claims report shows another 853K Americans filed for new unemployment benefits. 724K was expected.
November CPI came in a better than expected 0.2% vs 0.1% estimated
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the major indexes were mixed. The Dow fell 69.55 points, Nasdaq gained 66.86 points, and the S&P fell 4.72 points. Total NYSE volume traded, a moderate 4.72 billion shares. Advancing shares outpaced Declining shares by 1.15:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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