Thursday's Market Recap - Stocks Fall After Talk Of Biden's Plan To Increase Capital Gains Taxes.
- Apr 22, 2021
- 2 min read
What is The Premarket Telling Us?
April 22, 2021 7:00 AM.
Stocks futures are flat to slightly lower, with Dow futures down 8 points, Nasdaq futures down 15 points, and S&P futures down 4 points. Asian markets were mixed in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 1.564%, unchanged.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $61.03/barrel, down 0.52%.
On the Earnings Calendar:
Chipotle reported strong first-quarter earnings results, after the close of trading yesterday. The company handily beat its earnings and revenue expectations, including a doubling of online sales.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended their day mixed. Japan (Nikkei 225) up 2.38%, Shanghai down 0.23%, Hong Kong (Hang Seng) up 0.41%.
Major European markets were . German (DAX) up 0.48%, France CAC 40 up 0.69%, London FTSE 100 up 0.04%.
Market And Sector Dynamics
Markets opened moderately lower in Thursday's trading. The Dow slipped 111 points, Nasdaq down 13 points, and the S&P fell 8 points. WTI crude oil was modestly higher, at $61.83/barrel, up 0.78%, and the US 10 Bond held at the 1.552% level.
Adding positive sentiment to the markets this morning are the following pieces of data: For the second week in a row, US Initial Jobless Claims came in better than expected, with 547K new claims for unemployment benefits vs the 603K that was expected. Southwest Airlines reported the results for its first quarter this morning, with the company recording a narrower loss than was expected, and expecting to return to profitability in June.
Finally, Chipotle blew out analyst earning expectations, reporting stellar earnings and revenue numbers, doubling online revenues.
Stocks struggled in the morning session but started to recover in the early in the afternoon session until the news broke that the Biden Administration was having discussions about increasing capital gains taxes.
This news sent the major indexes precipitously lower, Dow down 420 points, around 2:00 PM. Stocks did not regain some of those losses during the remainder of the session.
All eleven S&P sectors closed with losses during today's selloff. Basic Materials, Energy, Technology, Consumer Discretionary, Financials, Consumer Staples, Utilities, Communication Services, Industrials, Healthcare, and Real Estate.
Factors Influencing Today's Market
The Biden Administration may be considering an increase in capital gains taxes, sending stocks lower.
For the second week in a row, initial jobless claims declined significantly. This week there were 547K new claims for new unemployment benefits, versus the 603K expected.
Better than expected earnings report from Chipotle, including a doubling of online revenues.
US 10 Year Bond Yield closed today at 1.541%, down 1.12%.
WTI crude oil closed its session at $61.86/barrel, up 0.83%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, markets were lower. The Dow plunged 321.41 points, Nasdaq fell 131.81 points, and the S&P gained 38.44 points. Total NYSE volume traded, a modest 4.25 billion shares. Declining shares outpaced Advancing shares by 1.57:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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