Tuesday's Market Recap - Mixed Earnings And Rising Covid-19 Infections Sends Stocks Lower.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately up at this hour, indicating a positive market open. Dow futures are down 105 points, Nasdaq futures up 61 points, and S&P futures up 15 points. Rising Covid-19 infection in the US is beginning to take center stage in the markets, as investors worry that things could get worse going into the winter months when most people spend more time indoors.
On The Bond Desk:
The US 10 Year Bond Yield at 0.80%, down 0.04%
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $38.94/barrel, up 0.99%.
On the Earnings Calendar:
Catapillar beats earnings expectation, but revenues fell short of expectations.
3M beats analyst earnings, and revenue expectations.
Jetblue posted a smaller than expected earnings loss.
In M&A News:
AMD finalizes its $35 Billion purchase of Xilinx.
What About The Asian And European Markets?
Major Asian markets ended their session mixed. Japan (Nikkei 225) down 0.04%, Shanghai up 0.10%, Hong Kong (Hang Seng) down 0.53%,
Major European markets ended lower. German (DAX) lost 0.93%, France CAC 40 down 1.77%, London FTSE 100 down 1.09%.
Market And Sector Dynamics
Stocks opened modestly higher to kick off the trading session. The Dow rose 20 points, Nasdaq gained 53 points, and the S&P was up 5 points. WTI crude oil was lower early at $38.83/barrel, down 0.7%, while the US 10 Year Bond has ticked lower to 0.783%.
So far, third-quarter earnings have been stellar, however, shares of 3M and Caterpillar are weighing on the Dow early. 3M reported better than expected earnings, but revenues missed expectations, while Caterpillar beat both earnings and revenue expectations. Despite these earnings, investors don't appear to be impressed.
Markets were also pressured today by the rise of Covid-19 infection across the US as well as disappointment with the halt of the stimulus negotiation before next week's elections.
Within ten minutes of the opening bell, the indexes were lower, trading in choppy fashion below the flat line. While the Nasdaq returned to positive territory, the Dow remained in negative territory for the entire session, closing at the intraday low.
Eight of the eleven S&P sectors close with losses today, led by Industrials, Financials, Energy, Real Estate, Basic Materials, Healthcare, Consumer Staples, and Utilities.
Factors Influencing Today's Market.
A disappointing rise in Covid-19 infections across the US continues to stoke investor fear.
Earnings from 3M and Caterpillar also disappointed investors, who sold shares.
Drugmaker, Ely Lilly has halted its oral viral Covid-19 antibody trial.
AMD has completed its $35 billion purchase of Xilinx.
US 10 Year Bond Yield closed at 0.771%, down, 3.96%.
WTI crude oil closed at $38.73/barrel, up 0.44%.
Asian and European stocks closed lower.
Market Close Volume Traded And Advance Decline Ratio
Markets finished mixed today, with the Dow down 222.19 points, Nasdaq gained 72.41 points, and the S&P fell 10.29 points. Total NYSE volume traded, a modest 40.3 billion shares. Declining shares outpaced Advancing shares by 2.21:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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