Thursday's Market Recap - A Hint Of Hope On Reducing Car Tariffs, Send Stocks Higher.
What is The Premarket Telling Us?
7:30 AM.
Based on US stock futures the Dow should open just shy of 200 points this morning. Dow futures are up 123 points, Nasdaq futures up 42 points, and S&P up 15 points.
On The Bond Desk:
The US 10 Year Bond Yield 2.84%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $74.47/barrel, up 0.45%.
On the Earnings Calendar:
None
In M&A News:
Disney has won DOJ US Antitrust agreement to acquire most of Twenty First Century Fox.
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) down 0.78%, Shanghai down 0.91%, Hong Kong (Hang Seng) down 0.21%, on worries about US tariffs going into effect tomorrow, and expected retaliation from China.
Major European markets closed the day higher. German (DAX) rose 1.19%, France CAC 40 up 0.86%, London FTSE 100 added 0.40%.
Market And Sector Dynamics
Stocks opened the trading session with strong gains. The Dow rose 170 points, the Nasdaq jumped 50 points, and the S&P up 14 points, on reports that the European Union and the Trump administration may be nearing an agreement where the US would forego the 25% tariff on European car imports, if the EU removes it's surcharge on US car exported.
Crude oil prices traded modestly early in the session, with WTI at $74.88/barrel, down 0.35%.
The shares of major banks also surged at the open, but gave up their gains a short while later. By 11:00 AM, stocks had given back most of the earlier gains, with the Dow up a mere 30 points. Stocks regained momentum before noon, climbing back to the day's high, and held on to those levels into the close.
Ten of the eleven S&P sectors closed session with moderate gains. Technology, consumer staples, real estate, healthcare, basic materials, utilities, and consumer discretionary, led markets higher. The energy sector was lower.
Factors Influencing Today's Market
Reports of a potential breakthrough between the European Union on the US regarding removal of tariffs. Investors hopeful
Crude oil prices were lower in today's trading. WTI crude oil prices closed at $73.12/barrel, down 1.36%.
June ADP Payroll rose 177,000 vs 190,000 expected, but still a strong steady payroll number.
Asian markets closed lower as US tariffs on China are set to go into effect tomorrow, and the retaliation by China is certain.
This week's Initial Jobless Claims rose by 3000 claims for a total of 231,000.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the Dow gained 181.92 points, Nasdaq rose 83.76 points, and the S&P gained 23.39 points. Total NYSE volume traded, a modest 2.54 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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