Thursday's Market Recap - Stocks Surged Higher On Optimism Of A Trade Deal With China.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mostly lower at this time. Dow futures down 100 points, Nasdaq futures down 23 points, and S&P futures down 11 points. Asian markets were lower in their session. Here at home the US government shutdown continues for it 27th. day, and investors are beginning to assess, the potential economic impact on US economic growth. This week, the banks have started to report fourth quarter earnings results, and the results so far has been mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 2.73%, up 0.02% or two basis points.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $51.27/barrel, up 1.99%
On the Earnings Calendar:
Morgan Stanley reported 4 Qtr. Earning results. The company missed both earnings and revenue expectations.
Netflix reports Q4 results after the closing bell this evening.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) fell 0.20%, Shanghai down 0.42%, Hong Kong (Hang Seng) down 0.54%
Major European markets also fell today . German (DAX) lost 0.12%, France CAC 40 down 0.34%, London FTSE 100 down 0.40%.
Market And Sector Dynamics
Markets opened mostly lower, due to weaker than expected 4 Qtr. results from Morgan Stanley. The bank missed both earnings and revenue expectations. The Dow fell 118 points, Nasdaq down 13 points, and S&P down 3 points. Stocks quickly cut its losses however, shortly after the open, and traded at or near the flat line for most of the morning, and early afternoon session.
Markets spiked appreciably higher around 2:45 PM, on a Wall Street Journal report that, the Administration was considering removing tariffs on goods from China, to get a deal, a proposal being spearheaded by Treasury Secretary, Steve Mnuchen. All the indices spiked higher on that news. with the Dow up more than 200 points. Market held on to most of those gains, despite some denials from the the Administration, that no such a deal was being considered.
Today's rally was broad based, with all eleven S&P sectors ending the day with moderate gains, led by Basic Materials, Industrials, Energy, Healthcare, Consumer Discretionary, Technology, Financials, Retail, and Utilities.
Factors Influencing Today's Market
Morgan Stanley reported disappointing fourth quarter financial results. Shares of the company traded lower in the session.
Wall Street Journal reports that the Administration may be willing to forgo tariffs on China to get a deal. Market spiked higher on that news.
This week's Initial Jobless Claims fell 3000 claims, to 213,000 total.
Major Asian and European stocks closed lower in today's trading.
Crude oil fell slightly in today's trading. WTI crude oil closed at $52.07/barrel, down 0.46%.
Market Close Volume Traded And Advance Decline Ratio
Markets closed positive in today's session. The Dow gained 162.94 points, Nasdaq rose 49.77 points, and S&P was up 19.86 points. Total NYSE volume traded, a modest 3.75 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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