Tuesday's Market Recap - Robust Rally Spiked By Solid Earnings, Record JOLTS & Easing 10 Yea
What is The Premarket Telling Us?
7:00 PM.
US stock futures are convincingly elevated early in the premarket. Dow futures are up 126 points, Nasdaq futures up 49 points, and S&P futures up 13 points. Another important day of earnings on tap. Goldman Sachs, Morgan Stanley, Johnson and Johnson, and United Healthcare, will report before the bell this morning.
On The Bond Desk:
The US 10 Year Bond Yield 3.16%, up .02%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $71.12/barrel, down 0.92%.
On the Earnings Calendar:
The following companies reported solid Q3 Earnings performance before the bell this morning.
Goldman Sachs, Morgan, United Healthcare, Johnson and Johnson.
Netflix reports quarterly earnings after the bell this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mixed. Japan (Nikkei 225) gained 1.25%, Shanghai down 0.85%, Hong Kong (Hang Seng) up 0.07%.
Major European markets rose in today's session. German (DAX) up 1.40%, France CAC 40 added 1.53%, London FTSE 100 gained 0.43%.
Market And Sector Dynamics
Markets stage a robust recovery the start the trading day. The Dow gained 100 points, Nasdaq up 70 points, and the S&P rose 18 points. Stocks are in broad rally mode, buoyed by strong earnings results from United Healthcare, Johnson & Johnson, Goldman Sachs, and Morgan Stanley.
Stocks climbed higher from the opening bell and continued to strengthen as the session progressed. A record JOLTS report, moderation in the 10 year bond yield, reduced volatility, and strong earning juiced the markets, much to the delight of the bulls. Stocks closed at the high of the session.
Today's rally was broad based. All eleven S&P sectors closed the session with gains, led by technology, healthcare, communication services, consumer discretionary, real estate, basic materials, and financials. Similarly, all 30 Dow component stocks close the session higher.
Factors Influencing Today's Market
Continued strong earnings from US corporations, reported by Goldman Sachs, Morgan Stanley, and Johnson & Johnson.
US 10 year bond yield moderates, calming investors fears, at least for today.
Crude oil traded modestly higher today. WTI crude oil closed at $71.92/barrel, up 0.20%.
The August JOLTS report shows job opening rose to a new record level of 7.136 million versus a 6.639 million, in July, which was later revised up to 7.077 million.
October Housing Market Index ticked up 1 point to 68 up from 67 in September. Optimism by home builders has been flat for a while, but did pick up ever so slightly this month.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading all the indices soared higher. The Dow jumped 547.87 points, Nasdaq rocketed 214.75 points, and the S&P climbed 59.13 points. Total NYSE volume traded, a moderate 3.40 billion shares. Advancing shares outpaced Declining shares better than 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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