Wednesday's Market Recap - Stocks Surge As US And European Union Agree Not To Add More Tariffs.
What is The Premarket Telling Us?
7:00 AM.
Stocks futures are flat to mixed, with Dow futures down 3 points, Nasdaq futures up 6 points, and S&P futures off by 2 points. Second quarter Earnings performance continues to be robust. Asian market closed mostly higher overnight.
After stepping down a few days ago, we learned this morning, that Chrysler Fiat CEO Sergio Marchionne, passes away, due to complications from shoulder surgery. He has been very respected, and pivotal force in saving Italian automaker, Fiat, and US automaker, Chrysler, after the 2008 market downtown.
On The Bond Desk:
The US 10 Year Bond Yield sits at 2.95%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $68.60/barrel, up 0.12%.
On the Earnings Calendar:
Boeing beats Q2 Earning expectations, but fell due to a one-time charge taken for the Tanker project.
General Motors also beat on the top and bottom line, but guided lower for the rest of the year, due to rising currency and commodity costs (including cost of steel due to tariffs).
Coca Cola beats on the top and bottom line, and also mentioned increase input cost due inpart to rising aluminium cost.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) up 0.46%, Shanghai down 0.07%, Hong Kong (Hang Seng) 0.90%
Major European markets traded lower today . German (DAX) down 0.87%, France CAC 40 down 0.14%, London FTSE 100 down 0.66%.
Market And Sector Dynamics
Stocks opened modestly lower. The Dow fell 50 points, Nasdaq down 3 points, and the S&P fell 1 point. Crude oil is up early in the session, with WTI crude at $68.80/barrel, up 0.41%. Shares of Boeing are moving higher, adding 60 points to the Dow fifteen minutes after the opening bell.
Stocks gradually moved higher as the session progressed, but really jumped higher less than an hour before the close, when news broke that the the US Administration and EU President, Jean-Claude Junker had reached some agreement, on avoiding additional tariffs, and the EU will buy Soybean, and Liquid Natural Gas from the US>
Ten of the eleven S&P sectors closed the session higher, led by technology, industrials, healthcare, real estate, energy, basic materials,consumer discretionary, consumer staples. Telecommunication services was the leader to the downside.
Factors Influencing Today's Market
Crude oil prices closed the session with gains. WTI crude oil closed at $69.43/barrel, up 1.33%.
This week's crude oil inventory status fell 6.1 million barrels, which is supportive of prices.
Strong Q2 Earning results from Boeing was a positive catalyst for markets today.
General Motors and Coca Cola also beat Q2 expectations on both the top and bottom line, and naming tariffs on steel and aluminium, as rising input costs.
Asian markets closed mixed, in their session, While European stocks were mostly lower on tariff concerns.
Market Close Volume Traded And Advance Decline Ratio
When the final bell rang, markets were solidly higher. The Dow gained 172.16 points, Nasdaq gained 91.47 points, and the S&P gained 25.67 points. Total NYSE volume traded, 3.53 billion shares. Advancing shares outpaced Declining shares up 1.67 points.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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