Monday's Market Recap - Dow Up Nearly 100 Points, Mostly On Resumed Trade Talks With China.
What is The Premarket Telling Us?
8:00 AM.
'Status Quo' describes the market setup this morning. US stock futures are basically unchanged from the prior close. Dow futures up 28 points, Nasdaq futures down 8.75 points, and the S&P down a fraction (0.55). Trade talks have restarted between the US and China, in Bejing.
Tesla breaks ground for a new Gigafactory in China.
Apple and Samsung has joined forces to make iPhone talk to Samsung smart TV
On The Bond Desk:
The US 10 Year Bond Yield at 2.66%, up 0.11%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $49.14/barrel, up 2.46%.
On the Earnings Calendar:
None.
In M&A News:
Eli Lily to buy Loxo Oncology in $8 Billion deal.
What About The Asian And European Markets?
Major Asian markets were solidly higher overnight. Japan (Nikkei 225) 2.44%, Shanghai up 0.72%, Hong Kong (Hang Seng) up 0.82%.
Major European markets closed lower in today's session. German (DAX) down 0.18%, France CAC 40 0.38%, London FTSE 100 down 0.39%.
Market And Sector Dynamics
Markets opened the trading session modestly higher, with the Dow adding 25 points, Nasdaq up 15 points, and the S&P was 2 points. WTI crude oil prices are moving higher early, $48.64/barrel, up 1.44%, and edging near the $50.00 level, on news that Saudi Arabia will cut supply output.
There is also some positive news coming out of the annual JPMorgan Healthcare Conference, in San Francisco. A huge biotech merger, with Eli Lily is buying Loxo Oncology in a $8 billion deal. Shares of Lily are lower on the news, while shares of Loxo surged.
Trade talks between China and the US have resumed in Bejing, and investors remain hopeful, that these talks will yield results.
Stocks did turn negative for a brief moment after the open, but staged a V shaped rally around 10:00 AM, and took off from there, with the Dow hitting the high of the day up 250 point, early in the after the afternoon session.
Today's rally was fairly broad based. Ten of the eleven S&P sectors closed with gains. Consumer Discretionary, Energy, Technology, Real Estate, Communications Services, Industrials, and Healthcare, were the leaders. Utilities were lower.
Factors Influencing Today's Market
Resumption of trade talks between the US and China, in Bejing.
Saudi Arabia possible cut in crude production.
Crude oil prices were modestly higher in today's session. WTI crude oil closed at $48.76/barrel, up .031%.
Eli Lily plan to buy Loxo Oncology for $8 billion.
JPMorgan Annual Healthcare Conference in San Francisco, today.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, the Dow gained 98.19 points, Nasdaq rose 84.61 points, and the S&P up 17.75 points, Total NYSE volume traded, 4.05 billion shares. Advancing shares outpaced Declining shares nearly 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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