Friday's Market Recap - Blowout Employment Number And A Dovish Powell Sends Dow 700+ Points High
What is The Premarket Telling Us?
7:00 AM.
The stock market set up is trending solidly positive at this hour in the premarket. Dow futures are up 301 points, Nasdaq futures up 112 points, and the S&P futures up 35 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.55%, unchanged from the last close.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.26
Crude Oil:
WTI crude oil futures for $48.15/barrel, up 2.25%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) fell 2.26%, Shanghai gained 2.05%, Hong Kong (Hang Seng) gained 2.24%.
Major European markets closed with solid gains. German (DAX) gained 3.37%, France CAC 40 up 2.72%, London FTSE 100 2.06%.
Market And Sector Dynamics
Stocks opened the trading session with investors in a positive mood, after the release of a strong 312,000 jobs report, for December, vs 176,000 expected. The unemployment rate ticked up to 3.9%, while average hourly waged rose a solid 0.4% month over month, or 3.2% YOY. The Dow gained 350 points, Nasdaq rose 110 points, and the S&P up 38 points.
Crude oil is also on the move early, with WTI crude oil $48.38/barrel, up 2.70%, contributing to the positive sentiment.
By 11:00 AM the Dow was up 680 points, even as investors anticipate comments from Fed Chair, Jerome Powell in Atlanta, Georgia.Mr. Powell will be on a Joint Interview panel, with Former Chairs, Janet Yellen, and Ben Bernanke.
Stocks climbed higher even after completion of the well received comments from Chairman Powell. By 12:30 the Dow was up 725 points, and the Nasdaq up 265 points.
Today's rally was broad based, with all eleven S&P sectors closing with solid gains, led by Technology, Communication Services, Basic Materials, Industrials, Energy, Consumer Discretionary, and Financials.
Factors Influencing Today's Market
Strong December employment number show 312,000 new jobs created, unemployment rate up 3.9%, with average hourly earnings up 0.4%.
Perceived flexibility in comments from Fed Chair Powell on the Fed's interest rates and it's balance sheet rolloff.
Both Asian and European markets closed with gains today.
Crude oil prices rose in the session. WTI crude oil closed at $48.31/barrel, up 2.98%.
This week's Baker Hughes Oil Rig count fell 8 rigs to 877 total.
Market Close Volume Traded And Advance Decline Ratio
All the major indices were significantly higher when trading ended. The Dow rocketed 746.94 points, Nasdaq surged 275.35 points, and the S&P gained 84.05 points. Total NYSE volume traded, a moderate 4.16 billion shares. Advancing shares outpaced Declining shares by 10:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments