Tuesday's Market Recap - Dow Up On Better Strong Earnings From Banks And Healthcare Companies.
What is The Premarket Telling Us?
7:30 AM.
US stock futures are positively flat two hours before the bell. Dow futures up 9 points, Nasdaq futures up 26 points, and S&P up 3 points. Asian stocks reported strong gains overnight, on the promise of new stimulus from Chinese authorities, in the form of Tax Cuts, Fees, and other measures. In Europe, Prime Minister May, faces another vote on her Brexit deal today, and frankly, it doesn't look good.
On The Bond Desk:
The US 10 Year Bond Yield at 2.71%, up 0.01%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $51.09/barrel, up 1.15%.
On the Earnings Calendar:
JPMorgan missed fourth quarter earnings and revenue estimates. Shares of the company are lower early.
Strong earning and revenue from United Healtcare.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded with nice gains overnight. Japan (Nikkei 225) gained 0.96%, Shanghai rose 1.36%, Hong Kong (Hang Seng) rose 2.02%
Major European markets also traded higher today. German (DAX) up 0.33%, France CAC 40 gained 0.49%, London FTSE 100 rose 0.58%.
Market And Sector Dynamics
Markets opened the trading day slightly higher, with the Dow up 1.38 point, Nasdaq up 27 points, and S&P up 3.60 points, as investors digest, corporate earnings from JPMorgan, and Wells Fargo. The former missed both earnings and revenue expectations, while Wells Fargo, beat earnings, but fell short on revenue expectations. Shares of both banks traded lower in the early going.
Strong earnings from United Healthcare, and a turnaround in shares of JPMorgan, after comments from CEO Jamie Dimon, lifted banks shares higher, setting the stage for a sustained positive session. Except for a period of weakness in the mid-morning, and another in the mid-afternoon, when news broke about the 'No vote' on Prime Minister May's Brexit Plan, markets remained decidedly positive for the entire session.
Nine of the eleven S&P sectors closed the session with moderate gains, led by Healthcare, Communication Services, Technology, Utilities, Consumer Discretionary, Real Estate, Consumer Staples, and Financials.
Factors Influencing Today's Market
Strong Fourth Qtr. Earnings results from United Healthcare, and a turnaround in shares of JPMorgan after comments on his earnings call.
Disappointing quarterly earnings from Wells Fargo, after beating earnings, and missing revenue expectations.
In Britain, a decisive No Vote, this afternoon, almost dooms Prime Minister May's Brexit vote.
Crude rallied in today's session. WTI crude oil closed at $52.11/barrel, up 3.17%.
Both the Asian and European markets enjoyed nice gains in their respective sessions.
December PPI fell 0.02% due to a decline in crude oil prices.
Market Close Volume Traded And Advance Decline Ratio
Stocks gained ground for a second day. The Dow gained 155.75 points, Nasdaq gained 117.92 points, and the S&P up 27.69 points. Total NYSE volume traded, a modest 3.55 billion shares. Advancing shares outpaced Declining shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments