Tuesday's Market Recap - Dow Ends With Small Gains But Nasdaq And S&P Slides.
- May 4, 2021
- 2 min read
What is The Premarket Telling Us?
May 7, 2021 7:15 AM.
US stock futures are respectably higher this morning to begin the second trading day of May. Dow futures are up 20 points, Nasdaq futures down 44 points, and S&P futures down 3 points. Asian markets ended mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.617%, up 1.1 basis points.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $65.71/barrel. up1.89%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed in their sessions. Japan (Nikkei 225) lost 0.83%, Shanghai down 0.81%, Hong Kong (Hang Seng) up 0.70%.
Major European markets closed lower. German (DAX) lost 2.49%, France CAC 40 down 0.89%, London FTSE 100 down 0.67%.
Market And Sector Dynamic
Markets opened lower today, under pressure from high growth technology stocks. with the Dow slid 110 points, Nasdaq fell 0.9% or points, and the S&P fell 0.5% or points. WTI crude oil started off modestly higher at $63.82/barrel, up 0.38%, while the US 10 Year Bond hovered at 1.621%. With first quarter earning season waning, and the absence of any new catalyst, investor latched on to a simple comment from Treasury Secretary, Janet Yellen, indicating that interest rates will need to go up at some time, to prevent the economy from overheating. Investor took that as a negative signal, and sold off technology growth stocks.
All three major indexes traded sharply lower for most of the session, before the Dow staged an afternoon comeback, and climbed into positive territory just before the close of trading.
Six of the eleven S&P sectors were lower in today session, led by Technology, Consumer Discretionary, Communication Services, Real Estate, Consumer Staples, and Utilities. Basic Materials, Financials, Industrials, Healthcare, and Energy ended higher.
Factors Influencing Today's Market
Markets sold off hard on a comment from Treasury Secretary, Janet Yellen on a interest rate hike.
The US Trade Deficit for March soared more than was expected - $74.4 Billion.
US 10 Year Bond Yield closed down for the third session at 1.592%, down 0.93%.
WTI crude oil closed today at $65.69/barrel.
Asian markets were mixed, while European stock closed lower.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, the major indexes ended mixed. The Dow gained 19.80 points, Nasdaq lost 261.62 points, and the S&P lost 28 points. Total NYSE volume trades, a modest 4.47 billion shares. Declining shares outpaced Advancing shares by 1.32:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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