Wednesday's Market Recap - Another Positive Day For Stocks After Strong ADP Payroll Number.
What is The Premarket Telling Us?
7:00 PM.
Stock futures are moderately higher two and a half hours before the opening bell. Dow futures up 50 points, Nasdaq futures up 19 points, S&P futures up 7 points. Asian markets were mixed overnight.
ADP Private Payroll for September shows the private sector added 230,000 new jobs, confirming the strong labor economy.
On The Bond Desk:
The US 10 Year Bond Yield at 3.06%, down 0.02%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $75.25/barrel, up 0.03%
On the Earnings Calendar:
None
In M&A News:
Honda and General Motors (GM) announce a $2.7 Billion deal to develop an Automated Driverless Vehicle, with GM-owned company, Cruise.
What About The Asian And European Markets?
Major Asian markets mixed. Japan (Nikkei 225) down 0.66%, Shanghai closed, Hong Kong (Hang Seng) down 0.13%.
Major European markets ended mixed. German (DAX) down 0.42%, France CAC 40 up 0.43 %, London FTSE 100 lost up 0.48%.
Market And Sector Dynamics
Stock opened triple digits higher, with the Dow up 130 points, Nasdaq up 30 points, and S&P up 10 points, buoyed by a strong 230,000 rise in ADP Private Payroll, signalling a great labor market. Advancing shares outpaced declining shares by 2:1 early in the session. Shares of big technology companies; Amazon, Facebook, Alibaba, Twitter and Snap were up early in the session.
WTI crude oil was lower early in the session, at $75.06/barrel, down 0.21%.
Small cap stocks which have been the main beneficiaries of worries about tariffs and trade wars, over the last six months, have began to lose ground, now that a new NAFTA deal has been reached between the US, Canada, and Mexico.
After a number of fits and starts, over the last few years, US interest rates now seems to be moving consistently higher. The US 10 year bond yield has been holding steadily above the 3% level. Today it ticked even higher, in today's session, to close at 3.16%, a nice intraday move, giving a welcome boost to shares of banks and other financial companies.
The Dow reached a high of nearly 170 points shortly after the open, and remained at that level for most of the session, before pulling back from that level an hour before the close of trading.
Six of the eleven S&P sectors closed with losses, led by utilities, consumer staples, real estate, basic materials, consumer discretionary, and healthcare. Energy, financials, industrials, and technology finished higher.
Factors Influencing Today's Market
US 10 year bond yield ticked higher today, pushing shares of banks and financial shares higher.
ADP Private Payroll rose 230,000 new jobs.
Share of large technology companies rose in today's session.
Crude oil traded moderately in today's session. WTI crude oil closed at $76.41/barrel, up 1.57%.
Asian European markets closed mixed in their sessions.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were moderately higher. The Dow gained 54.45 points, Nasdaq gained 25.54 points, and the S&P rose up 2.08 points. Total NYSE volume traded, a moderate 3.54 billion shares. Advancing and Declining shares were mostly even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments