Friday's Market Recap - Strong Rally As Reduced Trade Tension With China Juices Markets.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are displaying all green arrow at this hour. Dow futures up 146 points, Nasdaq futures up 29 points, and S&P futures up 11 points. Asian markets closed up more than one percent overnight. Shares of Netflix are lower in the premarket, after reporting and beating earnings and revenue expectation, and new subscriber targets. However, revenue growth is slowing, and that disappointed investors. Share of Tesla are also indicating lower, as CEO Elon Musk announced that the company is cutting 7% of its workforce, about 3100 jobs, to improve operational efficiency, and production of the Tesla Model 3.
Markets are still holding on to the positive US China trade news reported by the Wall Street Journal yesterday.
On The Bond Desk:
The US 10 Year Bond Yield sits at 2.75%, up 0.02%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $52.90/barrel, up 1.59%.
On the Earnings Calendar
Netflix reported after the closing bell yesterday. The company beat analyst earning and revenue expectation, as well as grew US and International subscribers.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) up 1.29%, Shanghai gained 1.42%, Hong Kong (Hang Seng) rose 1.22%.
Major European markets recorded solid gains today. German (DAX) gained 2.63%, France CAC 40 up 1.70%, London FTSE 100 rose 1.95%.
Market And Sector Dynamics
Stocks started of the trading session solidly to the upside. The Dow gained 160 points, Nasdaq rose 45 points, and the S&P was up 17 point. Potential easing of US China trade tension have taken over market sentiment. The early breath is strong. Advancing to Declining shares are 6:1. Crude oil prices are also modestly higher. WTI crude oil at $52.51/barrel, up 0.83%.
Markets powered higher for the entire trading session. The rally was broad based, led by solid gains, in all eleven S&P sectors. Energy, Industrials, Financials, Basic Materials, Technology, Consumer Discretionary, Consumer Staples, Healthcare and Communication Services, outperformed.
Factors Influencing Today's Market
Potential easing of US China trade tensions buoyed markets today.
Strong performance from companies that would benefit from easing of trade tensions.
Asian and European markets also recorded solid rallies.
Crude oil had a strong rally today. WTI crude price closed at $53.80/barrel, up 3.32%.
This week's Baker Hughes Oil Rig count fell 21 rigs to 852 total.
January Consumer Sentiment Index fell precipitously to 90.7 vs 98.30 in December. The result of the government shutdown.
Tesla plans to reduce its workforce by 7%, or about 3100 employees.
Netflix met 4Qtr,Earnings results, but share fell because revenue growth, although high, is slowing.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, the Dow was up a whopping 499.19 points, Nasdaq gained 72.76 points, and the S&P rose 34.75 points. Total NYSE volume traded, a modest 3.95 billion shares. Advancing shares outpaced Declining shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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