Thursday's Market Recap - A Softer Than Expected CPI Read Was Positive For Stocks Today.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are modestly in the green this morning. Dow futures up 35 points, Nasdaq up 21.50 points, and the S&P futures up 3.75 points. Market are expected to open modestly higher. Asian markets were up big overnight. Both the European Central Bank (ECB), and the Bank of England are expected to announce decisions on interest rates today.
On The Bond Desk:
The US 10 Year Bond Yieldat 2.96%, down 0.02% or (2 basis points).
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $69.40/barrel, down 1.38%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets recorded solid gains overnight. Japan (Nikkei 225) rose 0.96%, Shanghai jumped 1.15%, Hong Kong (Hang Seng) surged 2.54%.
Major European markets closed mixed today. German (DAX) rose 0.19%, France CAC 40 slipped 0.08%, London FTSE 100 %
Market And Sector Dynamics
Stock opened the trading day triple digits higher. The Dow surged 133 points, Nasdaq gained 57 points, and the S&P rose 12 points. Simiconductor/Chip stocks moved higher early in the session. Investors have their eyes on Foreign central banks, this morning, as the European Central Bank (ECB) decided to kept rates unchanged at 0%, and the Bank of England also decided to hold its rate at the existing 0.75%. In the emerging markets, Turkey hiked its interest rate from 17.50% to 24%.
Here at home, August Consumer Price Index (CPI) came in softer than expected, up 0.2% vs 0.30% consensus estimate. Markets have interpreted a cooler CPI read, means less threat of inflation, giving the Fed less incentive to quicken the pace of interest rate hikes.
Fifteen minutes after the open, the Dow was up over 162 point, as investors digested the morning's available global and national data. Stocks remained elevated for the entire trading session.
Eight of the ten S&P sectors closed the session with gains, led by technology, healthcare, utilities, industrials, real estate and basic materials. Consumer staples, and financials lagged in the session.
Factors Influencing Today's Market
Crude oil prices declined moderately in the session. WTI crude oil prices closed at $68.59/barrel, down 2.53%
This week's Initial Jobless Claims fell 1000 to 204,000 total.
August CPI rose rose 0.2% vs 0.3% consensus estimates. Calming inflation fears at least for today.
The European Central Bank and the Bank of England left their interest rates unchanged.
Asian markets closed solidly higher in their session.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks were solidly higher. The Dow gained 147.07 points, Nasdaq gained 59.48 points, and S&P rose 15.26 points. Total NYSE volume traded, a moderate 3.22 billion shares. Advancing shares outpaced Declining shares by 1.31:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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