Wednesday's Market Recap - Coronavirus Infections Here And In Europe Pushed Stocks Off The Cliff.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are severely depressed at this hour. The Dow fell 435 points, Nasdaq up 121points, and the S&P fell 44 points. Rising coronavirus cases in Europe, including France and Germany, leading there authorities to impose restrictions.
On The Bond Desk:
The US 10 Year Bond Yield at 0.78%, down 0.02%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $37.88/barrels, down 4.27%.
On the Earnings Calendar:
Microsoft quarterly results beat earnings and revenue expectations after the bell yesterday evening.
Boeing reported a smaller than expected quarterly loss.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets were mostly lower. Japan (Nikkei 225) down 0.29%, Shanghai up 0.46%, Hong Kong (Hang Seng) fell 0.29%.
Major European markets sold off deeply. German (DAX) down 4.17%, France CAC 40 down 3.37%, London FTSE 100 down 2.55%
Market And Sector Dynamics
On cue, and as indicated by US stock futures earlier in the morning, markets tumbled lower at the open, with the Dow down 570 points, Nasdaq down 189 points, and the S&P fell 62 points. WTI crude oil was also down early, at $37.38/barrel, down5.34%. The US 10 Year Bond at 0.759%. All eleven S&P sectors were lower early in the session.
Rising coronavirus infections in France and Germany started the ball rolling in the European markets, and it snowballed from there.
A morning of mixed earnings added more uncertainty, as Microsoft quarterly earnings and revenue beat expectations, and Boeing reported a smaller loss than was expected. However, shares of both companies tumbled lower and remained lower for the entire session. Shares big technology companies bore the brunt of today's losses, but the selloff was broad-based and pronounced.
All eleven S&P sectors closed the session with losses, led by Technology, Energy, Communication Services, Consumer Discretionary, Industrials, Healthcare, Utilities, Consumer Staples, Basic Materials, Financials, and Real Estate.
Factors Influencing Today's Market
Rising coronavirus infections in France, Germany, and here at home dominated markets again today.
Disappointing earnings performance from Microsoft and Boeing.
Asian and European stocks ended mostly lower in their session.
US 10 Year Bond Yield ended the day at 0.774%, up 0.44%.
WTI crude oil price closed at $37.56/barrel, down 5.08%.
This week's EIA Petroleum status report shows US crude oil inventories rose/build 4.3 million barrels.
Market Close Volume Traded And Advance Decline Ratio
Markets plunged today on worry about increasing coronavirus infections across the US, France, and Germany, leading both European countries to impose restrictions on their citizens, to control the new outbreak. Here in the US investors worry that the same thing could happen here. When the market closed the Dow sank 943.24 points, Nasdaq tumbled 426.48 points, and S&P fell 119.65 points. Total NYSE volume traded, a heavy 5.11 billion shares. Declining shares outpaced Advancing shares by 10.57:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
Comments