Tuesday's Market Recap - Stocks Tanked As The President Cuts Off Stimulus Talks In Afternoon Tweet.
What is The Premarket Telling Us?
7:00 AM.
Muted describes the status of US stock futures at this early hour, as markets try to figure out its direction for today. Dow futures are up 19 points, Nasdaq futures down 44 points, and S&P futures down 6 points.
During the last few days, investors have been focused on the President's health in light of his positive Covid-19 diagnosis. The President returned to the White House yesterday evening, after a four-day stay at Walter Reed Hospital. His doctors say he is not 'out of the woods yet,' but he can complete his treatment at home. The status of any additional fiscal stimulus, being negotiated by the Administration and the House is also a current concern for markets. Major Asian markets closed with gains overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.76%, up 0.06%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $39.68/barrel, up 1.17%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded higher. Japan (Nikkei 225) gained 0.52%, Shanghai closed for holiday, Hong Kong (Hang Seng) gained 0.90%.
Major European markets ended with gains. German (DAX) up 0.61%, France CAC 40 up 0.48%, London FTSE 100 up 0.12%.
Market And Sector Dynamics
Stocks opened the trading day mixed. The Dow rose 79 points, Nasdaq down 10 points, and the S&P up 4 points. WTI crude oil started the day higher at $40.54/barrel, up 3.52%, and US 10 Year Bond ticked higher at 0.775%.
Markets traded in a narrow range around the flat line for most of the morning and afternoon session, with the Dow up nearly 200 points, around 3:00 PM., before falling precipitously after the President's surprising decision.
Today's session ended broadly negative. Ten of the eleven sectors closing with losses, led by Consumer Discretionary, Communication Services, Technology, Energy, Healthcare, Basic Material, Industrial, Financial
Factors Influencing Today's Market
In a bewildering move the President cuts of additional stimulus negotiations until after the elections.
Stocks tanked after the President's decision.
Asian and European markets closed their sessions higher.
US 10 Year Bond closed at 0.739/barrel, down 5.11%.
WTI crude oil closed today at $40.67/barrel, a gain of 3.70%.
August JOLTS Job Opening report came in a lower than expected 6.493 million job openings vs 6.618 million in July.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets were all lower. The Dow lost 375.88 points, Nasdaq dived 177.88 points, and the S&P lost 47.68. Total NYSE volume traded, a moderate 4.44 billion shares. Declining shares outpaced Advancing shares by 1.61:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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