Thursday's Market Recap - Mixed Session. Nasdaq Outperformed Because Of Big Tech Earnings.
What is The Premarket Telling Us?
7:00 AM.
US stocks are mixed in the early setup. Dow futures down 45 points, Nasdaq futures up 40 points, and S&P futures down 2 points. US China trade talks seems to be going well in Washington, the Fed confirmed its dovish policy stance yesterday, and corporate earnings, while not stellar, is fairly good. This portends a great market set up.
On The Bond Desk:
The US 10 Year Bond Yield 2.65% down 0.05% or five basis points.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $54.48/barrel.
On the Earnings Calendar:
Facebook, Microsoft, Visa, and Paypal, all reported better than expected earning results after the closing bell yesterday.
UPS beats 4th Qtr. earnings and revenue expectation. Shares up in premarket.
General Electric reports better than expected quarterly results this morning.
Amazon reports after the closing bell, today.
In M&A News:
What About The Asian And European Markets?
Major Asian markets traded higher overnight. Japan (Nikkei 225) gained 1.06%, Shanghai up 0.35%, Hong Kong (Hang Seng) rose 1.08%.
Major European markets mixed to mostly higher. German (DAX) down 0.08%, France CAC 40 up 0.36%, London FTSE 100 gained 0.39%.
Market And Sector Dynamics
Stocks opened the last trading day of the month mixed. The Dow sank 108 points, Nasdaq rose 35 points, and the S&P added 1 point. Strong quarterly performance, from Facebook was a major catalyst, helping push the Nasdaq higher, early in the session.
Rising crude oil prices is also a positive factor, with WTI crude oil at $54.77/barrel, up 1.01%.
Jobless Claims rose this week by 53,000 to a total of 253,000, obviously a fallout from the government shutdown, but still confirms a strong labor economy.
The Dow remained below the flat line for the entire trading session, but did stage a few rally attempts to get to positive territory. It the low, the Dow was down 170 points, shortly after the open.
Today session was mixed, Nine of the eleven S&P sectors closed with decent gains. Communication Services, Utilities, Consumer Staples, Healthcare, Consumer Discretionary, Real Estate, and Energy, and Industrials. Basic Materials, and Financial were the lagging sectors.
Factors Influencing Today's Market
Better than expected earnings reports from Facebook, Visa, Microsoft, Paypal, and General Electric.
US China trade talks appears to be making some progress.
Crude oil was slightly lower in the session. WTI crude oil closed at $53.79/barrel, down 0.81%.
Initial Jobless claims jumped 53,000 to 253,000 claims, most likely due to the government shutdown.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, the Dow was down 15.19 points, Nasdaq gained 98.66 points, and the S&P rose 23.05 points. The Dow had the largest monthly gain since 2015, and the S&P had the best January since 1987. Total NYSE volume traded, a moderate 4.82 billion shares. Advancing shares outpaced Declining shares by 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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