Wednesday's Market Recap - Fiscal Stimulus Anxiety Prevailed Over Mixed Earnings Results.
What is The Premarket Telling Us?
7:00 AM.
US stock futures can be described as mildly positive, at the point, with Dow futures up 7 points, Nasdaq futures up 20 points, and S&P futures up 4 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.80%, up 0.04%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $41.07/barrel, down 1.51%.
On the Earnings Calendar:
Netflix reported Q3 earnings after the close yesterday. The company missed earnings, and subscriber expectations, compared to Q2 which rocketed higher after the pandemic lockdown.
Verizon reported better than expected Q3 earnings results before the bell this morning.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets ended their sessions mixed. Japan (Nikkei 225) rose 0.31%, Shanghai slipped 0.09%, Hong Kong (Hang Seng) up 0.75%.
Major European markets closed lower. German (DAX) Fell 1.41%, France CAC 40 lost 1.53%, London FTSE 100 fell 1.91%.
Market And Sector Dynamics
Once again the uncertainty of a fiscal stimulus agreement, before the November 3rd. elections weighing negatively on market sentiment this morning. The Dow fell 33 points, Nasdaq rose 20 points, and the S&P up (0.50) a fraction. WTI crude oil price sits at $40.89/barrel, down 1.97%, and the US 10 Year Bond has ticked up to 0.814%. Shares of Netflix are lower, after the company badly missed Q3 earnings and new subscriber expectations after the close of trading yesterday evening. Also reporting a stellar earning quarter after the close yesterday was Snapchat (SNAP). The company beat earnings and revenue expectations, and other subscriber metrics, sending share of the company solidly higher.
This morning Verizon reported a beat earnings and revenue expectation, and also raised guidance for the current quarter.
Today's session was volatile as investors focused on the on-again, off-again speculation of a fiscal stimulus
before the upcoming elections. At the high, the Dow was up 140 points in the morning, but gave up all those gains and then some by 11:30 AM. This volatility continued for the rest of the session, ending at the low of the session.
The selloff was modest and broad-based, with eight of the eleven S&P sectors closing the session with losses, led by Energy, Industrials, Consumer Discretionary, Healthcare, Financials, Real Estate, Basic Materials, Utilities, and Technology. Communication Services, and Consumer Staples ended higher.
Factors Influencing Today's Market
Markets are still focused on the on-again-off-again fiscal stimulus hopefully before election day.
Strong Q3 earnings reports from Verizon and Snapchat were positive for markets today.
Asian and European markets were mostly lower in the session.
US 10 Year Bond Yield closed higher 0.821%, up 4.48%.
WIT crude oil closed today at $39.91/barrel, down 3.74%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell/draw -1.1 million gallons.
Market Close Volume Traded And Advance Decline Ratio
Major markets finished the day with modest losses. The Dow fell 97.97 points, Nasdaq lost 31.80 points, and the S&P lost 7.56 points. Total NYSE volume traded a moderate 4.15 billion shares. Declining shares outpaced Advancing shares by 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
Comments