Tuesday's Market Recap - Stock Rally As Improved Bond Yields Softened Fears Of Imminent Recessio
What is The Premarket Telling Us?
7:00 AM.
US stock futures are looking decidedly positive at this hour. Dow futures up 121 points, Nasdaq futures up 26.75 points, and S&P futures down up 12 points. Asian markets traded higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.42%, down 0.04%, or four basis points.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $59.60/barrel, up 1.33%.
On the Earnings Calendar:
In M&A News:
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) gained 2.15%, Shanghai lost 1.51%, Hong Kong (Hang Seng) rose 0.15%.
Major European markets traded higher today. German (DAX) up 0.64%, France CAC 40 rose 0.87%, London FTSE 100 added 0.26%.
Market And Sector Dynamics
Stocks opened the trading session, strong to the upside, with the Dow up 190 points, Nasdaq up 70 points, and the S&P 23 points, led by Financials, Retail, and FAANG stocks. The was broad based, with advancing shares outpacing declining shares 8:1. Shares of Boeing also solidly up early in the session, helping to push the Dow higher.
Stock jumped higher as the morning session continued, with the Dow up 275 points, Nasdaq up 91 points, and the S&P up 30 points, ninety minutes after the opening bell. All eleven S&P sectors were in positive territory.
Also helping to fuel this broad rally is the fact that bond rates have turned around intraday, and are now rising. There is also a suggestion from Goldman Sachs, the inversion of the 3 month and the 10 year bond yields, may be due to foreigners buying our bond, in a search for higher yields.
Today's remarkable rally began to fade just after midday, and continued for most of the afternoon session, before regaining some strength an hour before the close of trading.
Despite retreating from the morning highs, the session was very positive, and broad based, with all eleven S&P sectors finishing the the session with decent gains. Energy, Financials, Consumer Staples, Industrials, Utilities, Healthcare, Real Estate, Basic Materials, and Technology being the outperformers.
Factors Influencing Today's Market
Investors were in a risk on mood as US bond rates turned higher, reducing fears of imminent recession.
Crude oil traded higher. WTI crude oil closed at $59.69/barrel, up 1.90%.
February Housing Starts came in slightly less than expected, as the softness in the housing continues.
March Consumer Confidence dipped to 124.1 from the 134.1 last month, and shy of the 133 expected.
US 10 Year Bond Yield ticked up a bit to close at 2.412%, but higher than the low of the prior day.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the Dow gained 140.90 points, Nasdaq rose 53.98 points, and S&P added 20.10 points. Total NYSE volume traded, a light 3.24 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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