Tuesday's Market Recap - Massive Morning Rally Fades Due To US China Trade Fears.
What is The Premarket Telling Us?
7:00 AM.
Stock index futures triple digit higher in the premarket. Dow futures up 185 points, Nasdaq futures up 62 points, and S&P futures up 18 points. Brexit worries in Britain, and the situation with the arrest of Huawei, CFO, in Canada complicating US China trade relations.
On The Bond Desk:
The US 10 Year Bond Yield at 2.86%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $51.57/barrel, up 1.12%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets close mixed. Japan (Nikkei 225) down 0.34%%, Shanghai up 0.41%, Hong Kong (Hang Seng) modestly up 0.07%.
Major European markets were all higher. German (DAX) gained 1.49%, France CAC 40 rose 1.35%, London FTSE 100 up 1.27%.
Market And Sector Dynamics
US stocks had a strong open, with the Dow up 325 points, Nasdaq up 100 points, and the S&P gained 31 points. Stocks are hanging on to a tweet from the President, suggesting he will soon have great news on China, and they will soon restart buying Soybean for the US. Crude oil is also on the rise early, with WTI crude oil at $52.15/barrel, up 2.24%.
Market breath is a solid 10:1 Advancing to Declining shares. Materials, and Financials are leading markets higher, early.
The massive early rally, which saw the Dow hitting over 370 points, began to fade around the midpoint of the morning session, and continued for the rest of the session. At the low the Dow was down nearly 200 points, a six hundred point round trip.
Here's how the sectors fared in today's session. Eight of the eleven S&P sectors closed with modest gains, led by Consumer Staples, Healthcare, Utilities, and Communication Services.
Factors Influencing Today's Market
Big morning rally faded as investors saw no tangible evidence that US China trade problem will improve any time soon.
Brexit fears continue in Britain, after postponed vote yesterday, and Prime Minister May's meeting with Angela Merkel and other European leaders today.
Crude oil traded moderately higher today. WTI crude oil closed at $51.65/barrel, up 1.27%.
November Producer Price Index rose 0.1% higher than the 0% consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
Despite the robust positive rally at the open, the market faded significantly during the session. The Dow fell 53.02 points, Nasdaq lost 11.31 points, and the S&P down 0.94 point. Total NYSE volume a moderate 3.87 billion shares. Declining shares outpaced Advancing shares 1.24:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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