Tuesday's Market Recap - Technology Outperforms In Mixed Session.

cashtonsaunders
Sep 8, 2021
3 min read

What is The Premarket Telling Us?

Tuesday, September 7th. 2021. 7:30 AM.

US Equity futures are mostly flat to mixed at this hour. Dow futures up 45 points, Nasdaq futures down 3 points, and S&P futures up 4 points. Asian markets ended their sessions with gains. In Britain, Prime Minister Boris Johnson proposed tax hikes to help pay for Covid-19 Pandemic costs.

On The Bond Desk:

The US 10 Year Bond Yield at 1.348%.

Currency Desk:

Eurodollar: 1.18

UK Pound: 1.37

Crude Oil:

WTI crude oil futures at $68.37/barrel.

On the Earnings Calendar:

None to report

In M&A News:

None to report

What About The Asian And European Markets?

Major Asian markets traded higher in their sessions. Japan (Nikkei 225) up 0.86%, Shanghai up 1.51%, Hong Kong (Hang Seng) up 0.73%

Major European markets fell as Prime Minister, Boris Johnson propose tax hikes to help pay for healthcare costs due to the Covid-19 Pandemic . German (DAX) down 0.56%, France CAC 40 down 0.26%, London FTSE 100 down 0.53%.

Market And Sector Dynamics

Today is the first trading day of the week, after yesterday's Labor Day Holiday. US stocks were mostly lower in the premarket on a downgrade of US economic growth by Goldman Sachs, over the weekend. The company highlighted the effects on the Covid-19 Delta variant, as well as the waning effects on fiscal stimulus as the reasons for the downgrade. More recently, US consumer report have also confirmed that consumer sentiment has been negatively affected by the impact of Covid-19 variant on economic activity.

Stock opened the trading day mixed, with the down 117 points, Nasdaq gained 2.30 points, and the S&P fell 9 points, with shares of Technology and Communication Services sector outperforming the markets. Shares of companies such as Apple, Amazon, Google, Tesla surging in the session. Share of some of recently beaten down China stock like Alibaba, and other also gained some traction today.

Cryptocurrency also weighed on market sentiment today, as El Salvador became the first country in the world to adopt Bitcoin as legal tender for the country. The country which uses the American Dollar as its currency, now holds 400 Bitcoins valued at $21 Million. In a surprise market move, the price of Bitcoin, and other cryptocurrencies fell on this news, which was further unsettling for markets.

Shares of Boeing weighed negatively on markets today as well, after the company and Ryanair broke off talks on the order of 75 747-Maxs it ordered last year. The parties reportedly, could not agree on a price. Could the be a negotiating ploy? Stay tuned.

Factors Influencing Today's Market

Goldman Sachs downgrades US economic growth forecast due mostly to effect of Covid-19 Delta variant.
Shares of Boeing fell today after the company and Ryanair broke failed to agree on a price for the 75 737-Maxs ordered earlier by Ryanair.
The price of Bitcoin fell today after El Salvador became the first country to adopt Bitcoin as legal tender.
US 10 Year Bond Yield ended the day1.370%, up 3.63%.
WTI crude oil closed at $68.65/barrel, up 0.45%.

Market Close Volume Traded And Advance Decline Ratio

At the close of trading, markets were mixed. The Dow lost 269.09 points, Nasdaq gained 10.81 points, and the S&P fell 15.40 points. Total NYSE volume traded, a light 3.80 million shares. Declining shares outpaced Advancing shares by 2.25:1.

Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Investing.com.