Tuesday's Market Recap - Early Triple Digit Rally Fades On Weakness In Healthcare And Mixed Bank
What is The Premarket Telling Us?
8:00 AM.
Stock futures are triple digit positive at this time. Dow futures up 143 points, Nasdaq futures up 29 points, and S&P futures up 9.75 points. Asian markets traded higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.55%, down 0.01%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.30
Crude Oil:
WTI crude oil future.s at $63.54/barrel, up 0.22%
On the Earnings Calendar:
Strong quarterly earnings results from Johnson & Johnson, and United Healthcare.
Bank of America also beat earnings estimates, but guided lower, anticipating weak interest income.
Netflix reports quarterly earnings after the closing bell today.
In M&A News:
Pinterest IPO is scheduled for Thursday.
What About The Asian And European Markets?
Major Asian markets were all higher. Japan (Nikkei 225) up 0.24%, Shanghai gained 2.39%, Hong Kong (Hang Seng) gained 1.07%.
Major European markets also traded higher. German (DAX) up 0.67%, France CAC 40 up 0.36%, London FTSE 100 added 0.44%.
Market And Sector Dynamics
Stocks rallied at the open, with the Dow surging 134 points, Nasdaq gained 24 points, and S&P rose 8 points. Driving stocks this morning is strong quarterly earnings, from Johnson & Johnson, and United Health Care, as well as some encouraging news suggesting China's economy has stabilized, China economic stimulus is working, and better than expected US corporate earnings. WTI crude oil is also higher early, at $63.51/barrel, up 0.19%, helping the energy sector.
Market breath is strong with advancing shares outpacing declining shares 3:1. Stock pulled back from the opening highs, and remained at that new level for the rest of the session, as investors digested the earning from Johnson & Johnson, United Healthcare
as well as Bank of America, that did also beat analyst estimates, but did reduce it guidance for the current quarter.
Stocks ticked higher mid-afternoon when news broke than Apple and chipmaker, Qualcomm settled their two year old dispute, sending shares of Apple modest higher, but Qualcomm shares surged more than 23%, at the close of trading.
Today's rally was broad based and market tone was very positive. Seven of the eleven S&P sectors closed the session with gains, led by Financials, Energy, Industrials, Technology, Consumer Discretionary, and Basic Materials.
Factors Influencing Today's Market
Strong quarterly earnings from Johnson & Johnson, and United Healthcare, and Bank of America.
Trucking company JD Hunt, missed earning quarterly expectations, citing slowing business environment.
Apple and Qualcomm announced they have buried the hatchet. The companies have settled their ongoing dispute.
Asian and European markets traded higher in their sessions.
April's Housing Index came in at the 63 equaling the consensus estimate.
WTI crude oil closed the day at $64.05/barrel, up 1.05%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the Dow gained 67.89 points, Nasdaq rose 24.21 points, and the S&P added 1.48 points. Total NYSE volume traded, a light 3.04 billion shares. Declining shares edged out Advancing shares 1.17:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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