Wednesday's Market Recap - Stocks Paused Today On Larger Than Expected Initial Jobless Claims Number
Updated: Nov 25, 2020
What is The Premarket Telling Us?
7:00 AM.
Flat and unremarkable describes the status of stock futures at this hour. Dow futures are down 57 points, Nasdaq futures up 18 points, and S&P futures were down 5 points. Asian stocks closed mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.88% up 0.02%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.33
Crude Oil:
WTI crude oil futures hovered at $45.09/barrel, up 0.40%.
On the Earnings Calendar:
Retailer, GAP
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) up 0.50%, Shanghai down 1.19%, Hong Kong (Hang Seng) up 0.31%.
Major European markets ended mixed today. German (DAX) down 0.02%, France CAC 40 up 0.23%, London FTSE 100 down 0.64%.
Market And Sector Dynamics
Markets began the Thanksgiving Eve session mostly mixed, with the Dow down 60 points, Nasdaq gained 16 points, and the S&P fell 4 points. WTI crude oil is off to a higher start at $45.52/barrel, up 1.36%, and the US 10 Year Bond hovers at 0.870%. Investors are taking a breather to consolidate the last two days of sharp gains.
This morning jobless claims report showed another 778,000 Americans applied for new claims for unemployment benefits, more than the 730,000 estimated. Also released, this morning was the second read on Q3 GDP which rose 33.1%, as was expected.
Stocks traded firmly in negative territory for the entire session. At the low, the Dow was down about 225 points, shortly below noon, but pulled back off the low and traded in a narrow range into the close.
Seven of the eleven S&P sectors closed today's session with moderate losses, led by Energy, Basic Materials, Industrials, Healthcare, Financials, Communication Services, and Consumer Staples. Consumer Discretionary, Technology, Real Estate, and Utilities were modestly lower.
Factors Influencing Today's Market
This week's Jobless Claims report shows another 778K new claims for unemployment benefits, and more than the 730K expected.
Second read on Q3 GDP increased by 33.1% in line with expectation.
US 10 Year Bond closed at 0.882%, down 0.36%.
WTI crude oil closed at $45.81/barrel, up 2.0%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell (-0.8) million barrels vs 0.8 in the prior week.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, the markets were mixed, with the Dow down 173.77 points, Nasdaq gained 57.62 points, and the S&P fell 5.76. Total NYSE volume traded, a moderate 4.93 billion shares. Declining shares outpaced Advancing shares 1.33:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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