Thursday's Market Recap - After A Nervous Morning, Stocks Rally As The President Signs Tariff Do
What is The Premarket Telling Us?
7:00 AM.
US stock index futures are mixed to higher early in the premarket session. Dow down 17 points, Nasdaq futures up 26 points, and the S&P futures up 3.25 points. Tariff talk, still dominating the market. Words coming out of the White House, suggest that Canada and Mexico, may be exempt form the proposed tariffs. However, it not a certainty at this time. Word is the president may have a meeting this afternoon, where he will sign tariff documents.
The European Central Bank (ECB), has left interest rates unchanged, but removed language from its written statement, indicating its willingness to more easing. (more hawkish).
On The Bond Desk:
The US 10 year bond yield at: % , up % or basis points
Currency Desk:
Euro dollar at 1.23
UK Pound at 1.38
Crude Oil:
WTI crude oil futures at $61.03 /barrel, down 0.20%
On the Earnings Calendar:
Kroger quarterly report, disappointed investors. The company earnings were in line with expectations, revenues beat expectation, but the company guidance, for the remainder of the year was weak.
In M&A News:
Insurer Cigna, is buying pharmacy benefit company, Express Script for $67 billion, in cash and stock.
What About The Asian And European Markets?
Major Asian markets were higher. Japan (Nikkei 225) up 0.54%, Shanghai up 0.51%, Hong Kong (Hang Seng) up 1.52%.
European markets were were all higher. Germany (DAX) gained 0.90%, France CAC 40 added 1.28%, London FTSE 100 rose 0.63%.
Market And Sector Dynamics
Markets opened the trading day with gains, as investors learn the tariffs may be modified or softened, and the ECB has left interest rates unchanged, in their meeting today. The Dow gained 53 points, Nasdaq rose 25 points, and the S&P added 6 points.
Stocks climbed even higher in the morning session, with the Dow climbing nearly 150 points, before gradually fading deep into negative by noon. Stock remained at that base until just before 2:00PM, after news that Trump tariffs, would exempt Canada, and Mexico.
Markets jumped higher at the conclusion of the president's formal announcement of the conditions, and terms of the tariffs, which began at half an hour before the markets closed at 4:00 PM.
Ten of the eleven S&P sectors closed the day in positive territory, led primarily, by consumer goods, telecommunications services, healthcare, utilities, industrials, and technology.
Factors Influencing Today's Market
President Trump, finally announced some details of his proposed steel and aluminium tariffs.
Crude oil traded lower today's session. WTI crude oil price closed at $60.28/barrel, down 1.42%.
Cigna proposed purchase of Express Script in a deal worth $67.00.
This week, Initial Jobless Claims rose 21,000 to 231,000 claims. A rebound from last weeks 49 year low.
Grocery chain, Kroger quarterly earning performance disappointed investors.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the markets were moderately higher. The Dow gained 93.85 points, Nasdaq rose 31.30 points, and S&P added 12.17 points. Total NYSE volume traded, 3.11 billion shares. Advancing shares outpaced Declining shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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