Tuesday's Market Recap - Stock Down On Weaker Than Expected October Retail Sales.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are mixed to mostly lower at this hour, after yesterday's sharp rally. Dow futures are down 163 points, Nasdaq up 22 points, and the S&P down 18 points. Asian markets ended mixed while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 0.91%, up 0.02%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $41.20/barrel, down 0.34%.
On the Earnings Calendar:
Retailer Walmart (WMT), reported another strong quarter of earnings, driven by stay-at-home purchases by its customers. The company handily beat analyst earnings and revenue expectations.
Home Depot beat quarterly earnings, thanks to blowout sales due to covid lockdown.
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 0.42%, Shanghai down 0.21%, Hong Kong (Hang Seng) up 0.13%.
Major European markets closed mixed. German (DAX) up 0.04%, France CAC 40 up 0.21%, London FTSE 100 down 0.87%.
Market And Sector Dynamics
Stocks opened the trading day lower with the Dow down 272 points, Nasdaq down 9 points, and the S&P fell 22 points. WTI crude also started the day lower at $40.97/barrel, down 0.90%, while the US 10 Year Bond sat at 0.870%. One bright spot for investors this morning has been October's Homebuilders Sentiment that came in at an all-time high, up 90% vs 85% for in September.
Markets sank lower after the open, with the Dow down 430 points, around 10:00 AM., the intraday low. Stock recovered most of the earlier loss during the course of the session, but unfortunately was not able to break into positive territory.
In today's selloff, nine of the eleven S&P sectors closed the day with modest losses, led by Utilities, Healthcare, Consumer Staples, Technology, Communication Services, Basic Materials, Consumer Discretionary, Industrials, and Financials. Energy and Real Estate, was modestly higher.
Factors Influencing Today's Market
Stronger than expected earnings from Walmart and Home Depot.
October Retail Sales came in lower than expected at 0.3% vs 0.4%.
November Housing Market Index came in 90 vs 85 estimated.
Asian and European markets ended mixed.
US 10 Year Bond Yield closed at 0.862%, down 5.40%.
WTI crude oil closed at $41.28/barrel, down 0.15%.
Market Close Volume Traded And Advance Decline Ratio
The bears were in control of the markets today. When trading ended the Dow fell 167.09 points, the Nasdaq fell 24.79 points, and the S&P fell 17.38 points. Total NYSE volume traded, a moderate 4.81 billion shares. Advancing shares outpaced Declining shares by 1.29:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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