Monday's Market Recap - Stocks Surge Due To Ease In Tension In US - China Trade Talks.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are significantly higher at this hour, with Dow futures up 233 points, Nasdaq futures up 47.75 points, and the S&P futures up 16.25 points. Investors are cheering a warming in the China - US trade negotiation, after the Treasury Secretary, yesterday, commented that the "trade wars are on hold." while the negotiations continue.
On The Bond Desk:
The US 10 Year Bond Yield at 3.07%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.34, up 1.
Crude Oil:
WTI crude oil futures at $71.28/barrel.
On the Earnings Calendar:
None as 1 Qtr. Earning season has ended.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) up 0.31%, Shanghai rose 0.64%, Hong Kong (Hang Seng) gained 0.60%.
Major European markets closed mixed. German (DAX) down 0.28%, France CAC 40 up 0.41%, London FTSE 100 up 1.03%.
Market And Sector Dynamics
Markets opened the trading day significantly higher, with the Dow soaring 168 points, Nasdaq rose 52 points, and the S&P up 13 points. Reduced trade tension with China, is a positive sentiment for market early in the session, as word coming from the US Treasury Secretary, on the weekend, that "trade wars are on hold," at least during the negotiations.
Crude oil is the other catalyst, as it continues to climb, due to concern about declines in supply from Venezuela, and Iran, and also the potential for increasing conflict in the middle east.
Stocks were elevated for the entire trading session. At the mid-point of the morning session, the Dow was up 375 points, the high of the day, pushing the Dow over 25,000 points, for the first time in two months.
Market sentiment was positive, and breath was good. All eleven S&P sectors closed the session with solid gains, led by industrials, telecommunications services, real estate, energy, technology, utilities, and consumer discretionary.
Factors Influencing Today's Market
Easing of US - China trade tensions, as any potential tariffs are suspended as negotiations continue.
A surge in crude oil prices. WTI crude oil closed at $72.53/barrel, up 1.06%, due to possible supply drop off in Venezuela and Iran.
Potential for geopolitical tensions rising in the middle east.
Dow closed above 25,000 points for the first time in two months.
Asian markets close higher overnight, and Europe was mixed.
Market Close Volume Traded And Advance Decline Ratio
At the close of the session, the Dow gained 298.20 points. Nasdaq rose 39.70 points, and the S&P added 20.04 points. Total NYSE volume traded, a modest 2.95 billion shares. Advancing shares outpaced Declining shares by 2.32:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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