Wednesday's Market Recap - Dow Gains On US China Trade Optimism And Stabilized US Bond Yields.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are moderately higher in the early going. Dow futures are up 109 points, Nasdaq futures up 42.50 points, and S&P up 14 points. Asian markets were higher in their session. This morning, investors are waking up to downgrade of Caterpillar, by Deutsche Bank, on the basis that the companies earning have peaked. In the retail space, Amazon recently announced, that it would cut Whole Foods prices. Those cuts go into effect today.
On The Bond Desk:
The US 10 Year Bond Yield at 2.48%, down 0.02%, or two basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.31
Crude Oil:
WTI crude oil futures are at new highs, up 0.16% to $62.68/barrel.
On the Earnings Calendar:
None.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets traded higher on good China economic data. Japan (Nikkei 225) up 0.97%, Shanghai up 1.24%, Hong Kong (Hang Seng) up 1.22%.
Major European markets also traded higher today. German (DAX) gained 1.70%, France CAC 40 rose 0.84%, London FTSE 100 up 0.37%.
Market And Sector Dynamics
Stocks got off to a solid start today, with the Dow up 80.54 points, Nasdaq up 42.10 points, and the S&P 12.65 points. Shares of Semiconductor/Chip companies, FAANG stocks, including materials companies were on the move early.
Besides a quick dip into negative territory, early in the morning session, and another, late in the afternoon session, stocks traded in positive territory for the entire session. The morning rally faded during mid-afternoon, but was able to regain some of those losses just before the close.
Six of the eleven S&P sectors close the day with moderate losses, led by Energy, Consumer Staples, Industrials, Utilities, Healthcare and Real Estate. Basic Materials, Technology, Consumer Discretionary, Communication Services, and and Financials closed with gains.
Factors Influencing Today's Market
US and China negotiating teams began meeting in Washington today. Investors are optimistic that a deal may be reached soon.
Deutsche Bank downgraded Caterpillar, claiming the company has reach what they describes as 'peak earnings.'
Amazon's third phase of price reductions goes into effect today.
Crude oil prices closed at slightly lower today at $62.40/share, down 0.29%.
This week's EIA Status Report show crude oil inventories rose a surprising 7.2 million barrels.
March ADP Payroll rose 129,000 vs 165,000 estimated.
Market Close Volume Traded And Advance Decline Ratio
At the close, the Dow rose 39 points, Nasdaq gained 46.86 points, and the S&P up 6.16 points. Total NYSE volume traded, 3.50 billion shares. Advancing shares outpaced Declining shares by 1.42:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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