Monday's Market Recap - Dow Surged Nearly 400 Points, As 10 Year Yield, And VIX Retreats.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are all positive this morning. Dow futures up 161 points, Nasdaq futures up 18.75 points, and S&P futures up 10.50 points. Warren Buffet/ Berkshire Hathaway, released his annual letter, at the Annual Shareholder meeting in Omaha, over the weekend. As is typical, Mr. Buffet is very positive on the markets, especially over the long term. For the most part, Mr. Buffet's positive outlook on the markets, is generally a positive sentiment for stocks. And today is no exception.
On The Bond Desk:
The US 10 year bond yield at: 2.87% , unchanged.
Currency Desk:
Euro dollar at 1.23
UK Pound at 1.40
Crude Oil:
WTI crude oil futures at $63.44 /barrel, down 0.17%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were all positive overnight. Japan (Nikkei 225) gained 1.19%, Shanghai added 1.23%, Hong Kong (Hang Seng) up 0.74%.
European markets were also higher in their session. Germany (DAX) added 0.35%, France CAC 40 up 0.51%, London FTSE 100 up 0.62%.
Market And Sector Dynamics
Markets opened the trading day higher. The Dow added 115.47 points, Nasdaq gained 36.45 points, and S&P up 12.11 points. Technology stock are on the move early, led by the FAANG stocks. Facebook, Apple, Amazon, Netflix are all higher. So are the banks.
The US 10 year bond yield and the VIX, have retreated, to less threatening levels, removing most of the fear and volatility, that scared markets a few weeks ago, causing the recent selloff.
Over the weekend, the Warren Buffet's Berkshire held its annual shareholders meeting, in Omaha, where he also released his annual investment letter, which indicated, Berkshire Hathaway will derive $29 billion from the recent tax cut plan.
By noon the Dow was up 220 point, as investors, cheered to positive long term equity outlook of Warren Buffet, and the global market fundamentals, which remains intact.
The market rally was broad based. All eleven S&P sectors are positive, early in the session, so are all 30 Dow component stocks.
Stocks rallied from start to finish, in today's session. Ten of the eleven S&P sectors closed the day with gains, led by consumer goods, technology, industrials, financials, healthcare, and basic materials.
Factors Influencing Today's Market
The US 10 year bond yield and the VIX retreat from recent highs.
Crude oil traded lower today. WTI crude oil closed at $63.01/barrel, down 1.41%.
Positive market from Warren Buffet at Berkshire Hathaway annual shareholder meeting, over the weekend.
Strong performance from consumer goods, financials, and healthcare stocks.
Asian and European markets were all solidly higher.
Market Close Volume Traded And Advance Decline Ratio
At the closed the all the indexes were higher. The Dow rose 399.28 points, Nasdaq rose 84.07 points, S&P rose 32.30 points. Total NYSE volume traded, a moderate 3.38 billion shares. Advancing shares outpaced Declining shares by 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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