Tuesday's Market Recap - Dow Adds To Yesterday's Gains Cheering New NAFTA Deal With Canada.
What is The Premarket Telling Us?
7:00 PM.
The markets set up is mostly positive in the early going, after yesterday's solid gains. Dow futures are down 93 points, Nasdaq futures down 34 points, and the S&P down 8.50 points. Asian stocks closed mixed while we were asleep.
Amazon announced this morning that it is raising the minimum wage for its US employees to $15.00/hour.
In Washington, the FBI continues it investigation after the reopening of Judge Kavanaugh's background file.
On The Bond Desk:
The US 10 Year Bond Yield at 3.08%, up 0.02% or two basis points.
Currency Desk:
Euro dollar: 129
UK Pound: 1.15
Crude Oil:
WTI crude oil futures at $75.28/barrel, down 0.03%.
On the Earnings Calendar:
PepsiCo quarterly results beat earnings and sales expectations. However the company reduced it full year profit guidance due to rising $US Dollar concerns. Long time CEO, Indra Nooyi is stepping down after a very successful twelve year run.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mixed in today's trading. Japan (Nikkei 225) gained 0.10%, Shanghai closed, Hong Kong (Hang Seng) down a solid 2.38%.
Major European markets fell moderately in today's session. German (DAX) down 0.42%, France CAC 40 fell 0.71%, London FTSE 100 lost 0.28%.
Market And Sector Dynamics
Stocks opened the trading day basically unchanged. the Dow down 2.94 points, Nasdaq down 5.97 points, and S&P down 1.64 points. By mid-morning stock pick up momentum, as investors doubled down on shares of industrials and materials companies such as Boeing, Caterpillar, companies that will benefit from the new NAFTA deal struck with the US, Mexico and Canada. Basically, investors were cheering one less hurdle to worry about.
Stocks remained elevated for the entire session, with the Dow reaching nealy 170 points, by midafternoon, setting a new all time record. Shares of big technology companies such as Facebook, Alibaba, Google, did not participate in today's rally.
Seven of the eleven S&P sectors closed the session higher, led by utilities, consumer staples, and basic materials. Consumer discretionary, and real estate were the lagging secto
Factors Influencing Today's Market
Amazon's announcement that it has increased the minimum wage rate for all its US employees to $15.00/hr.
Crude oil was traded slightly lower in today's session. WTI crude oil closed at $75.19/barrel, down 0.15%.
PepsiCo beats quarterly earnings and sales expectations, but cut full year earnings, because of rising currency concerns. The company's CEO Indra Nooyi also stepped down today after a stellar twelve years at the helm.
Fed Chair, Jerome Powell, at a meeting in Boston today, reaffirmed that the US economy is on sound footing, with little or no threat of inflation. He also stated that the Fed has the tools it needs, in the event of a crisis.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, stock were mixed. The Dow gained 122.73 points, Nasdaq fell 37.76 points, and the S&P lost 1.16 points. Total NYSE volume traded, a moderate 3.34 billion shares.Declining shares outpaced Advancing shares better than 1.5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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