Wednesday's Market Recap - Rebound In Crude Oil Was The Catalyst For Stocks Today.
What is The Premarket Telling Us?
7:00 AM.
On the eve of the Thanksgiving Holiday celebration tomorrow, US stock futures are all positive, indicating that markets will be higher at the open. Dow futures are up 119 points, Nasdaq futures up 46 points, and S&P futures up 15 points. Asia was mostly up overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 3.05%, down 0.01%, or basis point.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $54.44/barrel, up 1.89%
On the Earnings Calendar:
Agricultural Equipment Maker, Deere, reported solid Q3 Earnings, handily beating earnings and sales estimates.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) down 0.35%, Shanghai gained 0.21%, Hong Kong (Hang Seng) rose 0.51%
Major European markets closed higher. German (DAX) up 1.61%, France CAC 40 gained 1.03%, London FTSE 100 added 1.47%
Market And Sector Dynamics
Stock opened Wednesday's trading solidly higher. The Dow surged 140 points, Nasdaq rose 80 points, and the S&P up 17 points. Crude oil is also rebounding early, with WTI at $54.62/barrel, up 2.25%, a positive catalyst for shares of energy related companies.
Communications services, Consumer Discretionary, and Consumer Staples, and Technology helped to push market higher in the session. At the high of the session, the Dow was up over 200 points, at the midpoint of the afternoon trading.
Stocks sold off precipitously, half an hour before the close of the session, as investors suddenly decided to take profits, going into tomorrows Thanksgiving Holiday celebrations.
Despite the late day selloff, market tone was mostly positive and orderly. Seven of the eleven S&P sectors closed today's session with gains, led by Energy, Communication Services, Consumer Discretionary, Consumer Staples, Basic Materials, Industrials, and Technology.
Factors Influencing Today's Market
A welcomed rebound in Crude oil prices was a positive for stocks today. WTI crude oil closed at $54.63/barrel, up 2.25%.
This week's Petroleum Status Report shows US crude oil inventories rose 4.90 million barrels, to 446.9 million, down 2.2% YOY.
This week's Baker Hughes US Oil Rig count, (out early ahead of the holidays) down 3 rigs to 885.
This week's Initial Jobless Claims rose 3,000 to 224,000 slightly more than the 215,000 estimated.
Both the Asian and European markets were mostly higher in their sessions.
Market Close Volume Traded And Advance Decline Ratio
The bulls had a slight reprieve from the selloff of the last two days. At the close the Dow slipped 0.95 point, Nasdaq gained 63.43 points, and S&P added 8.04 points. Total NYSE volume traded, a modest 3.21 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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