Tuesday's Market Recap - A Deal To Avert A Govt. Shutdown & US China Trade Optimism Drove St
What is The Premarket Telling Us?
7:30 AM.
US stock futures are powering higher in the premarket, in response that legislators arrived at the framework of a deal, on the border wall, that would avoid a second government shutdown. Dow futures are up 205 points, Nasdaq futures up 62 points, and the S&P up 20 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.66%, up 0.03%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.28
Crude Oil:
WTI crude oil futures @ $53.38/barrel, up 1.55%.
On the Earnings Calendar:
Under Armour beats 4 Qtr. Earnings estimates. North American sales were flat, but the company was able to significantly reduce it inventory backlog.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded higher today. Japan (Nikkei 225) gained 2.61%, Shanghai up 0.68%, Hong Kong (Hang Seng) rose 0.10%.
Major European markets also closed higher. German (DAX) up 1.01%, France CAC 40 0.84%, London FTSE 100 added 0.06%.
Market And Sector Dynamics
At the open, all the major indices were solidly in positive territory. The Dow surged 170 points, Nasdaq up 50 points, and the S&P jumped 16 points. The framework of a deal to avoid another government shutdown, and optimism surrounding a possible trade deal with China, were the two main catalysts driving markets higher in the session. Crude oil also rose early, up 2.98%, at $53.99/barrel.
Market momentum strengthened throughout the entire session, as investors bought shares, of those companies that have been beaten down or under pressure, because of the trade feud with China. Markets reached the high of the day just before 2:00 PM, with the Dow up 405 points.
Today's rally was very positive, and broad based, with ten of the eleven S&P sectors ending the day with solid gains, led by Basic Materials, Consumer Discretionary, Industrials, Financials, Technology, Healthcare, Energy, Consumer Services, and Consumer Staples. Real Estate was lower.
Factors Influencing Today's Market
A deal to avoid another government shutdown has be struck by legislators in Washington.
US China trade negotiations seems to be going well in China.
Better than expected quarterly earnings from Under Armour, the sport apparel retailer.
Crude oil traded higher in today's session. WTI crude oil closed at $53.10/barrel, up 1.32%.
December JOLTS report show job opening increases 3.1% to 6.335 million vs 6.900 estimated.
Market Close Volume Traded And Advance Decline Ratio
When the closing bell rang, markets were all higher. The Dow jumped 372.65 points, Nasdaq rocketed 106.71 points, and the S&P gained 34.93 points. Total NYSE volume traded, a moderate 3.78 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.
Comments