Monday's Market Update: Dow Rockets 336 Points, Despite Worries About Tariffs And Trade Wars.
What is The Premarket Telling Us?
7:00 AM.
US stocks futures were mostly down early in the premarket, pointing to a lower open. Dow futures down 47 points, Nasdaq futures up 9 points, and the S&P futures down 5.25 points. Futures fluctuated higher and lower as the premarket session continued. Investors are still reacting to the fall out from any potential trade wars.
On The Bond Desk:
The US 10 year bond yield at: 2.86%, unchanged.
Currency Desk:
Euro dollar at 1.22
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $ 61.39/barrel, up 0.23%
On the Earnings Calendar:
None.
In M&A News:
Markets learned today that the Qualcomm annual meeting which should have been held sometime this week, has been delayed, while the US government undertakes a CFIUS review. This throws another wrinkle into Broadcom's hostile bid for Qualcomm.
What About The Asian And European Markets?
Major Asian markets ended mixed to lower. Japan (Nikkei 225) down 0.66%, Shanghai up 0.07%, Hong Kong (Hang Seng) down 2.28%.
European markets were higher, after elections in Italy, while in Germany, Chancellor Merkel, being able to finally form a coalition government, after her election, last September. Germany (DAX) up 1.49%, France CAC 40 up 0.60%, London FTSE 100 up 0.65%.
Market And Sector Dynamics
US stocks opened triple digits lower. The Dow sank 100 points, Nasdaq down 24 points, and the S&P lost 11 points. All eleven S&P sectors were lower in the early session, as investors tried to handicap the recently announced tariffs by the president last week, and the possibly of retaliatory measure by the countries involved, if the tariffs were implemented.
Fortunately, stocks turned around by mid-morning, and around noon, the Dow was up more than 100 points, after the Speaker of the House, Paul Ryan, announced his opposition to the announced tariffs, and suggested that the president reconsider.
Stocks surged higher in the afternoon session, with the Dow reaching its high, up 409 points, shortly before the close.
Today's rally was broad-based. All eleven S&P sectors ended the session with gains. Consumer goods, utilities, technology, industrials, financials, and healthcare were the major beneficiaries of today's rally.
Factors Influencing Today's Market
Worry about the US 10 year bond yield, has subsided somewhat.
Potential Steel and Aluminium tariffs, is still an issue worrying the markets, although less so, today.
Asian and European markets, were mostly higher in their sessions.
February's PMI Service Index rose a solid 55.9 up 2.6 points, driven by new orders.
February ISM Non-Manufacturing Index rose a solid 59.5 vs 58.8 expected.
Market Close Volume Traded And Advance Decline Ratio
When the closing bell rang, all the major indices were significantly higher. The Dow gained 336.70 points, Nasdaq gained 72.84 points, and the S&P added 29.69 points. Total NYSE volume traded, a moderate 3.45 billion shares. Advancing shares outpaced Declining shares better by 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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