Thursday's Market Recap - Solid Risk On Day, As Dovish Fed, ECB, Trump Xi Meeting At G20, Positi
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing to a strong market open. Dow futures up 211 points, Nasdaq futures up 90.25 points, and S&P futures up 24 points. Major Asian markets closed solidly higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.03%, down 0.03%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.27
Crude Oil:
WTI crude oil futures surges up $56.79/barrel, up 3.37%, as Iran shoots down US unmanned drone.
On the Earnings Calendar:
Oracle reported strong quarterly results.
In M&A News:
Slack Technologies (WORK) will have its Direct Listing on the NYSE today. A reference price of $26.00/share was announced yesterday evening. Share are expected to trade above the reference price. .
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) gained 0.60%, Shanghai jumped 2.38%, Hong Kong (Hang Seng) rose 1.23%.
Major European markets traded higher today. German (DAX) gained 0.38%, France CAC 40 up 0.31%, London FTSE 100 up 0.28%
Market And Sector Dynamics
Stock opened powerfully to the upside, as investors express their approval of the FOMC interest rate decision yesterday, leaving interest rate unchanged, and sufficiently dovish to cut at next month's meeting. The Dow soared 244 points, Nasdaq surged 101 points, and the S&P jumped 29 points. WTI crude oil also surging, up 4.43%, at $56.14/barrel. Early in the session, the S&P is at an all time high, intraday. Market breath at 10:1 Advancing to Declining shares.
Today was a strong risk on day, not only driven be the Fed decision, but was somewhat tempered mid session, by a likely strike on Iran by the US, for the downing of a unmanned drone, overnight. Conflicting statements from the President, stating that, Iran may may not have intended to shoot down the drone, seeming to walk back, earlier hawkish comments, helped stocks regain its morning momentum.
Stock power higher for the rest of the afternoon session, with all of the S&P sectors closing the day with gains, led by Energy, Industrials, Technology, Basic Materials, Consumer Staples, Consumer Discretionary, and Communication Services.
Factors Influencing Today's Market
Iran shooting down a unmanned US drone, dampened the morning rally, but stock recovered later.
Investors cheering the Fed action, and seemingly dovish stance, and hoping for a 50 basis point interest rate cut at the July FOMC meeting.
A risk on US trading session, following, Asian and European markets which were also solidly higher.
This week's Initial Jobless Claims Report shows a net loss of 6,000 jobs to 216,000 total claims.
Slack Technologies had a successful Direct Listing on the NYSE today.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, the Dow gained 249.17 points, Nasdaq gained 64.02 points, and the S&P gained 27.72 points. (a new record high). Total NYSE volume traded, a modest 3.81 billion shares. Advancing shares outpaced Declining shares by 2.64:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo F
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