Wednesday's Market Recap - Stocks Sold Off As US 10 Year Resumes Its Ascent.
- Mar 3, 2021
- 2 min read
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately higher at this hour, indicating that yesterday's rally could continue at the open. Dow futures are up 215 points, Nasdaq futures up 99 points, and S&P futures up 24 points. Asian market ended higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.42%, down 0.03%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $60.87/barrel, up 1.87%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended with gains. Japan (Nikkei 225) up 0.51%, Shanghai up 1.95%, Hong Kong (Hang Seng) gained 2.70%.
Major European markets also ended higher. German (DAX) gained 0.29%, France CAC 40 up 0.36%, London FTSE 100 up 0.93%..
Market And Sector Dynamics
Markets opened modestly higher with the Dow up 56 points, Nasdaq rose 9 points, and the S&P was up 2 points. WTI crude oil got off to a positive start at $60.82/barrel, up 1.79%, and the US10 Year Bond Yield 1.474%. Trading was choppy in early in the session with the Dow moving in and out of positive territory, and the US 10 Year Bond Yield resumed its rise, after a momentary pause yesterday. Huge technology stocks bore the brunt of today's losses, while companies that are expected to benefit from the reopening or reflation trade surged. Share of Boeing, Airlines and Cruise companies surged higher as they are expected to benefit from a resumption to pre-pandemic economic activities. Stocks returned to positive territory, an hour after the open, with the Dow up 170 points, the high of the day, during the mid-afternoon.
Markets continued to deteriorate during the last two hours of trading and closed at the low of the day.
In today's sell-off eight of eleven S&P sectors ended the session with losses, led by Technology, Consumer Discretionary, Communication Services, Healthcare, Utilities, Real Estate, Basic Materials, and Consumer Staples. Energy, Financials, and Industrials ended the session higher.
Factors Influencing Today's Market
Stocks sold off today as investors worry about rising interest rates and fear of inflation.
Asian and European markets traded higher on the back of yesterday's strong US rally.
The US 10 Year Bond closed today at 1.484%, up 6.15%.
WTI crude oil close today at $60.74/barrel, up 1.66%.
This week's EIA Petroleum Status Report shows US crude oil inventories grew 21.6 million barrels vs 1.3 million barrels the prior week.
February's ADP Private Payroll came in a less than expected 117,000 jobs vs 165,000 estimated.
Market Close Volume Traded And Advance Decline Ratio
Markets sold off again today. At the end of trading the Dow fell 121.43 points, Nasdaq plunged 361.04 points, and the S&P lost 50.57 points. Total NYSE volume traded, a heavy 6.22 billion shares. Declining shares outpaced Advancing shares by 1.12:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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