Thursday's Market Recap - Dow Pushes Higher For Fifth Day In A Row, Setting Aside Fears Of High
What is The Premarket Telling Us?
7:00 AM.
'Up, up, and away,' describes the action of US stock index futures this morning. Dow futures are higher by 261 points, Nasdaq futures up 45.50 points, and S&P futures up 15.50 points. Strong earnings from CISCO, and Applied Materials, a reduction in the VIX, and a softening of the US Dollar, appears to have calmed the markets.
Markets learned after the close yesterday, that Warren Buffet's Berkshire Hathaway took a position in Teva Pharmaceutical, increased his stake in Apple, and Bank of NY Mellon, while reducing his position in IBM.
On The Bond Desk:
The US 10 year bond yield at: 2.91% , up 0.07 % or seven basis points.
Currency Desk:
Euro dollar at 1.24
UK Pound at 1.40
Crude Oil:
WTI crude oil futures at $60.59 /barrel, down 0.02%
On the Earnings Calendar:
Strong Earning from Cisco, after the closing bell yesterday.
Applied Materials also reported strong earnings after the close of trading yesterday.
In M&A News:
None
What About The Asian And European Markets?
In the Asian markets, while we slept. Japan (Nikkei 225) up 1.47%, Shanghai and Hong Kong (Hang Seng) closed for Chinese New Year holidays.
Major European markets were also higher . Germany (DAX) up 0.06%, France CAC 40 up 1.11%, London FTSE 100 up 0.29%.
Market And Sector Dynamics
Stock opened higher. The Dow climbed 212 points, Nasdaq rose 55 points, and S&P gained 18 points. The shock of a rising 10 year bond yield seems to have subsided somewhat. The 10 year bond is now sitting in the 2.904% - 2.926% range. WTI crude oil is modestly lower, at $60.19/barrel, down 0.66%.
Stocks sold off precipitously, mid-morning, with the Dow falling into negative territory, before staging a V recovery, gaining momentum in the afternoon session, and into the close.
Markets appears to have come to terms with the rising 10 year bond yield. The VIX has also moderated, easing investors fear.
Strong earnings from CISCO was also a positive catalyst for markets today.
Today's rally was broad-based, with all eleven S&P sector closing the session with gains. Consumer goods, technology, utilities, industrials, healthcare, and telecommunications services were the outperformers.
Factors Influencing Today's Market
Today's range on the US 10 year bond yield 2.882% - 2.926%.
The range on the VIX today was 17.60 - 20. 66, was a positive for markets.
Crude oil rose in trading today. WTI crude oil price closed at $61.48/barrel, up 1.48%.
Strong quarterly earning from CISCO, and Applied Materials.
Market Close Volume Traded And Advance Decline Ratio
All three major indices closed the session with solid gains, the fifth day of consecutive gains. The Dow jumped 306.88 points, Nasdaq gained 112.81 points, and the S&P up 32.57 points. Total NYSE volume traded, 3.65 billion shares. Advancing shares outpaced Declining shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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