Tuesday's Market Recap - Stocks Moderately Down For The Second Day In A Row.
- Apr 19, 2021
- 2 min read
What is The Premarket Telling Us?
Tuesday, April 20, 2021. 7:15 AM.
US stock futures are signaling weakness at the opening, this morning. Dow futures down 133 points, Nasdaq futures down 55 points, and S&P futures down18 points. As first-quarter earnings season continues, a barrage of earnings is on tap this week, beginning with Netflix and IBM after the close of trading today.
On The Bond Desk:
The US 10 Year Bond Yield at 1.601%, up 0.03%.
Currency Desk:
Eurodollar:1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $63.51/barrel, up 0.13%.
On the Earnings Calendar:
Netflix reports after the closing bell today, and investors will be paying close attention to that net subscriber additions number.
In M&A News:
Canadian National Railway has offered a $30 billion bid for Kansas City Southern, higher than the one submitted by Canadian Pacific Railway a few days ago.
What About The Asian And European Markets?
Major Asian markets finished mixed. Japan (Nikkei 225) down 1.97%, Shanghai lost 0.13%, Hong Kong (Hang Seng) gained 0.10%.
Major European markets ended their session lower. German (DAX) down 1.55%, France CAC 40 down 2.09%, London FTSE 100 lost 2.00%.
Market And Sector Dynamics
As was indicated by the futures, US markets opened with moderate losses. The Dow down 120 points, Nasdaq down 11 points, and the S&P down 9 points. WTI crude oil was off to a mildly positive start at $63.65/barrel, up 0.43%, while the 10-year bond ticked up 0.8 basis point to 1.607%. Markets may be temporarily overbought, but most investors believe that the bull case is intact, because market fundamentals still looks good. There is a lot of stimulus money looking for a place to go, US economic data has been coming in better than expected, US covid vaccination has been ramping up aggressively across the US. We are nearing the point where vaccine supply has nearly caught up with demand.
Markets traded below the flat line for the entire session and trended lower as the session progressed.
Seven of the eleven S&P sectors ended the session with losses, led by Energy, Financials, Consumer Discretionary, Industrials, Basic Materials, Technology, and Communication Services. Utilities, Real Estate, Consumer Staples, and Healthcare.
Factors Influencing Today's Market
Stocks are consolidating recent gains as some stock valuations may be somewhat stretched.
Canadian National Railway has submitted a nearly $20 Billion competing bid for Kansas City Southern, following that submitted by Canadian Pacific Railway a few days ago.
Asian and European markets ended their sessions mostly lower.
US 10 Year Bond closed at 1.566%, down 2.73%.
WTI crude oil closed the day lower at $62.44/barrel, down 1.48%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today, the three major indexes were lower for a second day. The Dow lost 256.33 points, Nasdaq fell 128.50 points, and the S&P fell 28.32 points. Total NYSE volume traded, a modest 4.39 billion shares. Declining shares outpaced Advancing shares by 2.78:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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