Monday's Market Recap - After A Euphoric Start, The Dow, Nasdaq, And S&P Retreat Into Negati

What is The Premarket Telling Us?

7:00 AM.

The passing of the Senate Tax Bill, early Saturday morning is definitely having a very positive effect on this morning's futures. US stock index futures are up big. Dow futures up 223 points, Nasdaq futures up 32 points, and S&P futures up 16.50 points. Asian markets may be cheering the tax bill as well, as major Asian markets closed positive overnight.

On The Bond Desk:

US 10 year bond yield has ticked lower at 2.36%, down 0.06%, or six basic points.

Currency Desk:

Euro dollar at 1.18

UK Pound at 1.35

Crude Oil:

WTI crude oil futures at $57.73/barrel, down 1.08%.

On the Earnings Calendar:

In M&A News:

CVS Health announced over the weekend that, it has signed a deal to buy AETNA for $69.00 billion.

What About The Asian And European Markets?

Major Asian markets were mixed; Japan (Nikkei 225) down 0.49%, Shanghai down 0.24%, Hong Kong (Hang Seng) up 0.22%.

European markets were solidly higher in their session. Germany DAX up 1.43%, France CAC 40 up 1.27%, London FTSE 100 up 0.55%.

Market And Sector Dynamics

Stock opened higher, with the Dow surging 226 points, Nasdaq up 49 points, and S&P up 18 points, as investors cheer the passage of the Senate Tax Plan, late Friday night, early Saturday morning.

Consumer goods, telecommunication, financial, and industrial share are moving up in early trading, while healthcare stocks, such as United Healthcare, as well as CVS Health and Aetna, are trading lower.

Market momentum waned as the session progressed. After climbing more than 300 points at its high, the Dow steadily lost steam as the session progressed. In today's session, investors rotated out of the big caps technology stocks, and into local US stock that are expected to benefit from the lower corporate tax bill, such as regional banks, and the left for dead retail sector.

Market tone was positive, throughout a day nominated by sector rotation. Six of the eleven S&P sectors were higher, led by consumer goods, telecommunications services, industrials, basic materials, and financials.

Factors Influencing Today's Market

CVS Health agrees to buy Aetna in a deal worth $69 billion.

Crude oil prices fell in today's session. WTI crude oil price closed at $57.46/barrel, down 1.29%.

Major European markets closed higher today, with the DAX up 1.43%.

Market Close Volume Traded And Advance Decline Ratio

At the end of trading the markets were mixed; the Dow rose 58.46 points, Nasdaq fell 72.22 points or 1.05%, and the S&P lost 2.78 points. Total NYSE volume traded, 3.80 billion shares. Advancing and Declining shares were even.

Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.