Thursday's Market Recap - Another Positive Day For The Bulls As Bond Yields Stabilized Intraday.
What is The Premarket Telling Us?
7:00 AM.
This morning, US stock futures are all hugging the flat line, two and a half hours before trading begins. Dow futures were down 10 points, Nasdaq up 3 points, and S&P up 2 points.
Final read on 4th.Quarter came in at 2.2%. Final year 2018 GDP at 2.90%.
On The Bond Desk:
The US 10 Year Bond Yield at 2.39%, up 0.02% or two basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.31
Crude Oil:
WTI crude oil futures
On the Earnings Calendar:
Strong quarterly earnings results from Accenture, Lululemon, and Philip Van Heusen (PVH).
In M&A News:
Enthusiasm is building for the LYFT IPO scheduled to start trading tomorrow. The deal, which is oversubscribed, is expected to be priced after the close today.
What About The Asian And European Markets?
Major Asian markets mostly lower. Japan (Nikkei 225) fell 1.61%, Shanghai down 0.92%, Hong Kong (Hang Seng) added 0.16%
Major European markets were mixed. German (DAX) up 0.08%, France CAC 40 down 0.09%, London FTSE 100 up 0.56%.
Market And Sector Dynamics
Markets opened solidly higher. The Dow gained 106 points, Nasdaq rose 17 points, and the S&P was up 9 points. Strong quarterly earnings performance from Accenture, Lululemon (LULU), and Philip Van Heusen (PVH) is definitely a positive catalyst for markets this morning. Shares of both companies up 15% and 16%, respectively.
On the US China trade front, markets learned that, US negotiation team is now in China to continue or perhaps wrap up talks, which are said to be going well.
As have been the routine in recent days, the morning rally faded. By 11:45 AM, the major indices were in negative territory. The Dow down 33 points, Nasdaq fell 16 points, and the S&P was down 4 points. Shortly after midday, the Dow was down more than 50 points, the low of the day.
Stock rebounded during the afternoon session, gaining momentum into the close. Market participation was broad based, with 9 of the eleven S&P sectors ending the day with gains, led by Basic Materials, Financials, Industrials, Real Estate, Consumer Discretionary, Consumer Staples, and Technology.
Factors Influencing Today's Market
Investors are laser focused on US Bond yields. When yields decline, markets decline, when they stabilize or rise market to higher.
US trade representatives are in China to continue negotiations. Talks are said to be going well.
Strong quarterly earning reports from Lululemon and Philip Van Heusen. Share of both companies were up over 15% today.
Final read on Fourth Quarter GDP, came in at 2.2%. Full year 2018 GDP was 2.9%.
WTI Crude oil prices closed slightly lower at $59.30/barrel, down 0.19%.
Asian markets closed lower in their session.
This week's Initial Jobless Claims fell 5,000 claims to 211,000 claims.
Pending Home Sales for February declined 1.0% vs a 4.3% jump in January.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed for the day, the Dow gained 91.87 points, Nasdaq was up 25.79 points, and S&P up 10.87 points. Total NYSE volume traded, a light 3.11 billion shares. Advancing shares outpaced Declining shares 2.15:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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