Wednesday's Market Recap - Stocks Fall As The Possibility Of Fiscal Stimulus Fades.
What is The Premarket Telling Us?
8:00 AM.
US stocks futures are mildly mixed at this hour. Dow futures were up 67 points, Nasdaq futures down 15 points, and the S&P futures up 4 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.91%, down 0.02%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $45.06/barrel, up 0.13%.
On the Earnings Calendar:
None to report.
In M&A News:
Doordash, the food delivery platform IPO starts trading today. The IPO was priced at $102/share yesterday evening.
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) up 1.33%, Shanghai down 1.12%, Hong Kong (Hang Seng) up 0.75%.
Major European markets also ended mixed. German (DAX) up 0.47%, France CAC 40 down 0.25%, London FTSE 100 up up 0.08%.
Market And Sector Dynamics
Stocks started the trading day modestly positive, with the Dow up 110 points, Nasdaq up 10 points, and the S&P was up 8 points.
Markets slipped lower shortly after the open, as optimism surrounding fiscal stimulus seems to be fading in Congress, and coronavirus infections are skyrocketing here in the US. Stocks declined steadily throughout the session, reaching a low of the day, Dow down 212 points around 2:00 PM. Stock recaptured some of the loss into the close.
In today's selloff, eight of the eleven S&P sectors ended the day with moderate losses, led by Technology, Communication Services, Real Estate, Consumer Discretionary, Consumer Staples, Utilities, Healthcare, and Financials. Energy, Industrials, and Basic Materials were the lagging sectors today.
Factors Influencing Today's Market
The chances of another fiscal stimulus before the new administration takes office seems to be fading.
Coronavirus infections and deaths has skyrocketed to record levels here in the US.
Both Asian and European markets ended their sessions with losses.
US 10 Year Bond Yield closed at 0.928%, up 1.79%.
WTI crude oil prices closed today at $45.69/barrel, up 0.20%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets were lower. The Dow fell 105.07 points, Nasdaq plunged 243.82 points, and the S&P fell 29.43 points. Total NYSE volume traded, a heavy 5.26 billion shares. Advancing and Declining shares were evenly balanced.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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