Thursday's Market Recap - Stocks Rally Big But Investors Remain Fearful.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are all positive at this hour, but has been all over the map this morning. Dow futures are up 74 points, Nasdaq futures up 40 points, and S&P futures up 8 points. Asian stocks were mostly higher overnight, while in the UK two more Cabinet Ministers have resigned from the British Government, as a result of the Brexit deal, negotiated by Prime Minister May. The British Pound has fallen sharply, as approval by the government seems uncertain.
On The Bond Desk:
The US 10 Year Bond Yield ticked lower at 3.12%, down 0.02%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $56.25/barrel, unchanged %.
On the Earnings Calendar:
CISCO reported strong Q3 Earning performance after the close yesterday evening.
Nordstrom and Nvidia reports after the close this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded mostly higher overnight. Japan (Nikkei 225) fell 0.20%, Shanghai rose 1.36%, Hong Kong (Hang Seng) up 1.75%.
Major European markets were mixed in today's session. German (DAX) down 0.52%, France CAC 40 lost 0.70%, London FTSE 100 rose 0.06%.
Market Direction And & Sector Dynamics
Stocks opened Thursday's trading session triple digits lower. The Dow lost 126 points, Nasdaq fell 64 points, and the S&P down 21 points. Pressure from the utilities, and real estate sectors are weighing negatively on markets early. Stocks sank even further during morning trading, with the Dow down more than 300 points, shortly after eleven 11.00 AM.
Stocks did rebounded a short while later, on a still unverified report, suggesting that the Administration's main trade negotiator, Robert Lighthizer, had said the additional round of tariffs on China has been put on hold. The markets loved what it heard, and took off.
Stocks continued to surge in the afternoon session, with the Dow up over 200 points, around 2:45 PM, and moving even higher into the close.
Today's rally was fairly broadbased, with eight of the eleven S&P sectors ending the day with gains, led by Technology, Energy, Financials, Basic Materials, Industrials, healthcare, and communication services. Real Estate and Utilities were the main laggards.
Factors Influencing Today's Market
Comments attributed to Robert Lighthizer, the administration's trade negotiator, that tariffs are on hold.
Crude oil caught a bid today, and ended with modest gains. Crude oil prices closed at $56.46/barrel, up 0.37%.
CISCO reported strong Q3 Earnings performance.
The pace of Fed/FOMC interest rate hikes remains a concern for markets.
Resignations in British Government over Prime Minister May's Brexit deal adding to fear in the markets.
Market Close Volume Traded And Advance Decline Ratio
When the market closed, the Dow gained 208.77 points, Nasdaq gained 122.64 points, and the S&P added 28.62 points. Total NYSE volume traded, 3.81 billion shares. Advancing shares outpaced Declining shares by 1.33:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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