Wednesday's Market Recap - Stocks Soldoff On Stalled Stimulus Talks And Disappointing Bank Earnings
What is The Premarket Telling Us?
7:00 AM.
After a decent rally yesterday, US stock futures are mildly negative at this hour. Dow futures are down 12 points, Nasdaq futures down 3 points, and S&P down 5 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.73%, unchanged since the last close.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $40.01/barrel, up 0.47%.
On the Earnings Calendar:
Bank of America and Wells Fargo reported disappointing Q3 results before the bell.
Goldman Sachs blew out Q3 earnings expectations, sending shares higher.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets were mostly flat. Japan (Nikkei 225) up 0.11%, Shanghai down 0.26%, Hong Kong (Hang Seng) 0.07%.
Major European markets mixed to mildly lower. German (DAX) up0.07%, France CAC 40 down 0.12%, London FTSE 100 up 0.58%.
Market And Sector Dynamics
Markets got off to a modestly positive start, with the Dow up 50 points, Nasdaq up 25 points, and the S&P up 4 points. WTI crude oil at $40.90/barrel, up 1.74%, and the US 10 Year Bond Yield at 0.719%.
Stocks turned negative one hour after the open as investors tried to digest earnings from Bank of America, and Wells Fargo, out this morning. Both banks missed analyst expectations, sending their shares lower. Goldman Sachs on the other hand reported stellar earnings results, thanks to strong trading revenues, and consumer banking, sending shares of the company mildly higher.
Stocks sank deeper into the red around noon when Treasury Secretary Steven Mnuchin announced that the likelihood of another fiscal stimulus package was not likely before the election on November 3rd. That sent the Dow down 170 points, the low of the morning. Stocks hovered at this lower level in a volatile afternoon session.
Eight of the eleven S&P sectors were lower in today's selloff, led by Consumer Discretionary, Communication Services, Real Estate, Financials, Healthcare, Technology, Consumer Staples, and Utilities.
Factors Influencing Today's Market
Concern about Johnson & Johnson and Eli Lilly's Covid-19 trial that has been halted because of participants who became ill.
Disappointing Q3 earning performance from Bank of America, and Wells Fargo.
Goldman Sachs reported a blowout quarter, led by strong trading performance, and consumer banking.
Asian and European markets were mostly flat.
US 10 Year Bond Yield closed at 0.727%, down 0.23%.
WTI crude oil closed at $41.20/barrel, up 2.49%.
Market Close Volume Traded And Advance Decline Ratio
Stocks finished the day in negative territory today. The Dow lost 165.81 points, Nasdaq lost 95.17 points, and the S&P lost 23.26 points. Total NYSE volume traded, a modest 3.84 billion shares. Declining shares outpaced Advancing shares by 1.56:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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