Tuesday's Market Recap - Indexes Reach New Record Highs On Strong US & Global Outlook.

What is The Premarket Telling Us?

8:30 AM.

If you take your cue from US stock index futures, the markets are intent on continuing the the 2017 rally. On the first trading day of the new year, Dow futures are up 90 points, Nasdaq futures up 25 points, and the S&P 500 up 8 points. Major Asian markets were mostly higher overnight. European markets are looking weaker in early trading.

On The Bond Desk:

US 10 year bond yield sits at 2.43%, up 0.02% or two basis points.

Currency Desk:

Euro dollar has strengthened to 1.20

UK Pound also up 1.35

Crude Oil:

WTI crude oil futures at $60.32/barrel, down slightly 0.17%

On the Earnings Calendar:

None

In M&A News:

None

What About The Asian And European Markets?

Major Asian markets racked up strong gains overnight. Japan (Nikkei 225) slipped 0.08%, Shanghai gained 1.24%, and Hong Kong (Hang Seng) gained 1.99%.

European markets were mostly lower; German DAX down 0.35%, France CAC 40 down 0.45%, London FTSE 100 down 0.52%

Market And Sector Dynamics

Markets opened the first day of trading, in 2018 with a Bang! The Dow jumped 113 points, Nasdaq gained 28.66 points, S&P added 11.3 points. Investors are feeling confident that the recently passed tax cuts, will be a boon for companies, especially, those that derive their revenue and earnings entirely in the US. Many US retailers, are taxed at, usually pay the old upper bracket of 35%.

With the new tax bracket set at 21%, these companies will now enjoy a potential windfall, in earnings.

In addition, US, and global economies enjoying synchronized growth, and that is another positive underpinning for markets.

Market momentum cooled a little before midday, but regained some of the mornings momentum in the late after noon session, to close up triple digits.

Nine of the eleven S&P sectors closed with solid gains, led by basic materials, energy, technology, healthcare, and telecommunication services.

Factors Influencing Today's Market

• Crude oil prices inched modestly in the session. WTI crude price closed at $60.37/barrel, up 0.22%.

• US dollar has been steadily weakening against the other currencies, like the Euro, and the UK Pound.

• Investors are betting that the recent tax cuts, will be a boon for local US corporations.

• December PMI Manufacturing Index came in mostly unchanged at 55.1 vs 55.0 anticipated.

• Synchronized global growth continues to boost investor confidence to push stocks higher.

Market Close Volume Traded And Advance Decline Ratio

At the end of trading the major indexes were at new highs. The Dow jumped 104.79 points or (0.42%), Nasdaq rocketed 103.51 points (or 1.50%), and the S&P added 0.83%. Total NYSE volume traded, 3.02 billion shares. Advancing shares outpaced Declining shares nearly 2:1.

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