Tuesday's Market Recap - Investors Cheer Relaxation Of Restrictions On Huawei By Sending Stocks
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing higher this morning after yesterday dramatic selloff, due to the US Administration's action against Huawei, the Chinese technology giant. Dow futures are up 146 points, Nasdaq futures up 72 points, and the S&P futures up 18 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.42%, up 0.03% or three basis points.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $63.74/barrel, up 0.84%.
On the Earnings Calendar:
Home Depot handily beats first quarter earnings expectation, but same store sales missed expectations.
Retailer, Kohl's beat revenue expectations, but earnings, and same store sales missed expectation
In M&A News:
The US Administration has relaxed its restrictions on Huawei, allowing the Chinese technology giant to continue to purchasing US equipment.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) fell 0.14%, Shanghai gained 1.23%, Hong Kong (Hang Seng) down 0.47%
Major European markets closed with gains. German (DAX) up 0.85%, France CAC 40 up 0.50%, London FTSE 100 rose 0.25%.
Market And Sector Dynamics
It's not an exaggeration to say that this market is 'hooked on trade.' Stocks opened the trading day solidly higher, on news that the Trump Administration has relaxed some of the restrictions it placed on Huawei, yesterday. The Dow gained 135 points, Nasdaq gained 60 points, and the S&P gained 15 points. Better than expected quarterly earnings performance by Home Depot, is also helping to buoy the markets.
Today's trading session was positive and steady, as the Dow hit a high of nearly 200 points, shortly after the open, and held on to that trading level for the remainder of the session.
Market tone was positive, and the rally was broad based, with ten of the eleven S&P sectors closing the session with gains, led by Basic Materials, Technology, Industrials, Energy, Communication Services, Financials, Real Estate, and Consumer Discretionary.
Factors Influencing Today's Market
Trump Administration relaxation of restrictions on Huawei doing business with US companies.
Better than expected quarterly earnings from Home Depot.
Existing Home Sales for April came in a slightly weaker than expected 5.190 million vs 5.350 million.
WTI Crude Oil traded slightly lower today, closing at $62.78/barrel, down 0.51%.
Asian markets traded higher.
Market Close Volume Traded And Advance Decline Ratio
Today the bulls managed to eek out a win. When the session ended, the Dow gained 197.43 points, Nasdaq surged 83.35 points, and the S&P up 24.13 points. Total NYSE volume traded, a light 3.15 billion shares.Advancing shares outpaced Declining shares almost 4:1
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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