Wednesday's Market Recap - Stocks Ended Modestly Lower As Investors Ponder Growth Outlook.
- cashtonsaunders
- Sep 7, 2021
- 2 min read
What is The Premarket Telling Us?
Wednesday, September 8, 2021 7:30 AM.
The market setup this morning shows US stock futures are flat and directionally inconclusive. Dow futures down 7 points, Nasdaq futures down 7 points, and the S&P was down 2 points, suggesting a possible continuation of yesterdays moderate selloff.
On The Bond Desk:
The US 10 Year Bond Yield at 1.37%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.37
Crude Oil:
WTI crude oil futures at $69.35/barrel.
On the Earnings Calendar:
None to report
In M&A News:
PayPal announces deal to purchase Japan's buy-now-pay-later (BNPL) Paidy, in a deal worth $2.7 Billion.
What About The Asian And European Markets?
Major Asian markets markets ended mixed. Japan (Nikkei 225) gained 0.89%, Shanghai fell 1.40%, Hong Kong (Hang Seng) lost 0.12%.
Major European markets ended lower in their session. German (DAX)down 1.47%, France CAC 40 down 0.85%, London FTSE 100 fell 0.75%.
Market And Sector Dynamics
Markets opened mildly negative at the start of the trading session, based on uncertainty around the negative effects of the Covid--19 Delta variant on economic activity. The Dow was down 37 points, Nasdaq down 59 points, and S&P fell 4 points. WTI crude oil jumped off to a higher start at $69.64/barrel, up 1.89%, and the US 10 Year Bond remained subdued at 1.353%, up 1.2 basis points.
Online payment company, PayPal is getting larger, the company announced a deal today to purchase its Japan by-now-pay-later (BNPL) rival, Paidy for $2.7 Billion, this coming just days after, by-now-pay-later (BNPL) company, Affirm signed a potentially lucrative deal with Amazon.
Markets traded mostly near the flat line for the entire session as investors try to decipher the outlook for US economic against the backdrop of rising Covid19 infections among the unvaccinated population. Still, the US economy remains strong, corporate earnings remains elevated, but there signs that consumer confidence has turned mildly lower recently.
Another concern for the markets today was the waning interest among some market participants that Washington will be able to pass the nearly $4 Trillion Dollar infrastructure plan, which would add additional fiscal stimulus to the economy.
Factors Influencing Today's Market
Economic effects of rising Covid-19 Delta virus cases among the unvaccinated.
Uncertainty that the Biden Administration will be able to pass its massive Infrastructure plan.
PayPal is buying Paidy, a Japanese BNPL company for $2.70 Billion.
US 10 Year Bond closed today at 1.336%, down 2.96%.
WTI crude price ended the day at $69.30/barrel, up 1.39%.
Market Close Volume Traded And Advance Decline Ratio
All three major indexes fell in today's session. The Dow sank 68.93 points, Nasdaq fell 87.69 points, and the S&P lost 5.96 points. Total NYSE volume traded, a light 3.78 billion shares. Declining shares outpaced Advancing shares by 1.59:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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