Wednesday's Market Recap - Higher On Strong Earnings From CSX, United Continental, And Morgan St
What is The Premarket Telling Us?
7:00 AM.
US stock futures are basically neutral, two and a half hours before the bell. Dow futures are down 6 points, Nasdaq futures down 5 points, and the S&P was unchanged. Asian markets were mostly lower overnight.
Today the European Union slapped a $5.00 Billion penalty on Google for violation of anti-competitive rules regarding its Android operating system.
On The Bond Desk:
The US 10 Year Bond Yield sits at 2.86%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.30
Crude Oil:
WTI crude oil futures is lower at $67.60/barrel, up 0.71%.
On the Earnings Calendar:
Continuing the strong Q2 Earnings performance for financials, Morgan Stanley handily beat analyst earnings and revenue expectations this mornings.
Rail operator, CSX also reported strong Q2 performance after the bell yesterday.
United Continental also reported strong Q2 financial performance.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) rose 0.43%, Shanghai down 0.39%, Hong Kong (Hang Seng) was down 0.23%.
Major European markets end up in their sessions. German (DAX) up 0.82%, France CAC 40 rose 0.43%, London FTSE 100 gained 0.65%.
Market And Sector Dynamics
Markets opened higher. The Dow gained 14 points, Nasdaq up 4 points, S&P adding 2 points. Investors are feeling good about the market. Strong Q2 earning continues to lift stocks, as United Continental, CSX, and other corporations, beat quarterly expectation, and raise forward guidance.
Investors also liked what they heard from Fed Chair, Jerome Powell testimony to the House of Representative, reminiscent of his testimony in the Senate yesterday. The economy is strong, the Fed's inflation target is being met, and the market should expect the current pace of gradual hike in interest rates.
Stocks rose steadily from the open, and continued throughout the entire session. Six of the eleven S&P sectors were modestly lower, with consumer staples, utilities, real estate, and telecommunications services, leading to the downside. Financials, and industrials were the out-performers to the upside.
Factors Influencing Today's Market
Strong Q2 Earning results from Morgan Stanley, CSX, and United Contential was a catalyst for markets in the session.
Crude oil traded moderately higher in the session. WTI crude oil price closed at $68.76/barrel, up 1.00%.
Fed Chair's testimony on monetary policy in the House of Representative today.
This week's EIA Petroleum Status Report shows crude oil inventory rose 5.8 million barrels.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, stocks were mostly higher. The Dow gained 79.40 points, Nasdaq slipped a fraction 0.67 point, and the S&P up 6.07 points. Total NYSE volume traded, 3.06 billion shares. Advancing shares outpaced Declining shares by 1.20:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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