Thursday's Market Recap - Dow Up 400 Points On Strong Earning From Twitter, Microsoft, And Tesla
What is The Premarket Telling Us?
7:00 PM.
Today is a busy day in the third quarter earnings season, as many large and important US corporation will report results. After yesterday's more than 600 point decline in the Dow, US stock futures are solidly higher. Dow futures are up 176 points, Nasdaq futures up 94 points, and S&P futures up 22 points. Microsoft, Visa, TSLA, and Whirlpool reported strong earnings results after the closing bell yesterday evening, which is setting a positive tone for markets today. Asian markets were lower last night
On The Bond Desk:
The US 10 Year Bond Yield at 3.12%, down 0.05%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $66.88/barrel, up .09%.
On the Earnings Calendar:
Strong quarterly earnings performance from Microsoft, Visa, Tesla, Whirlpool, and Ford.
Twitter, Comcast, reported strong quarterly performance before the bell this morning.
Alphabet (Google), and Amazon reports earnings after the bell this evening.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mostly lower, but China was up marginally . Japan (Nikkei 225) down 3.72%, Shanghai up 0.02%, Hong Kong (Hang Seng) down 1.01%.
Major European markets were up in today's session. German (DAX) up 1.03%, France CAC 40 1.60%, London FTSE 100 0.59%.
Market Direction And & Sector Dynamics
US markets got off to a strong start this morning, with the Dow gaining 126.15 points, Nasdaq rose 103.72 points, and the S&P added 17.99 points. Better than expected earning performance from companies like Microsoft, Twitter, Tesla, Ford, and Whirlpool excited investor provided the need catalyst markets needed to push markets higher.
The Fed's Beige Book report suggested that many businesses surveyed did mention some concern about the effect of tariff on their businesses. However, that did not deter the bulls, enthusiasm to push stocks higher.
Stocks surged higher as the trading session progressed, as investors digested the flow of solid corporate earning, and perhaps looking forward to Amazon and Alphabet, after the bell this evening. The Dow hit the high of the day, up 516 points, shortly before the close.
Market tone was very positive, with ten of the eleven S&P sectors closing with gains. Consumer discretionary, technology, communication services, financials, basic materials, healthcare, real estate, and energy, were the out-performers. Utilities lagged.
Factors Influencing Today's Market
Better than expected quarterly earning from Microsoft, Tesla, Twitter, Ford, and Whirlpool.
China did not decline overnight, and investors saw that as a good sign.
Fed Beige Book survey suggest businesses are somewhat concerned about potential effects of tariffs on their business.
Crude oil traded modestly lower in the session. WTI crude oil closed at $67.33/barrel, up 0.76%.
This week's Initial Jobless Claims rose 5,000 to 215,000 claims. Still extremely low.
Market Close Volume Traded And Advance Decline Ratio
Today was a great day for the bulls. At the end of the session, the Dow surged 401.13 points, Nasdaq gained 209.94 points, and the S&P rose 49.47 points. total NYSE volume traded, a solid 4.58 billion shares. Advancing shares outpaced Declining shares nearly 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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