Friday's Market Recap - Investors Push Stocks Higher Despite US China Deal Uncertainty.
What is The Premarket Telling Us?
7:00 AM.
Two and a half hours before the start of the last day for the month and second quarter, stock futures are modestly higher. Dow futures up 77 points, Nasdaq futures up 7 points, and S&P futures are also up 7 points. Shares of major banks are all pointing higher, after they all successfully passed the Federal Reserves prescribed Stress Test, yesterday. Shares of Apple are also slightly lower, after we learned this morning, that the design guru behind products such as the iPhone, iPad, and nearly all Apple products, John Ive, is leaving the company. Clearly, investors will be trying to assess the impact, John's leaving will have on the company.
On The Bond Desk:
The US 10 Year Bond Yield at 2.00%, down six basis points.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures up slightly at $59.54/barrel, up 0.19%.
On the Earnings Calendar:
Nike reported quarterly earning after the bell yesterday. The company missed on earnings, but revenue across all geographies, including China, showed tremendous growth.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) fell 0.29%, Shanghai gave up 0.62%, Hong Kong (Hang Seng) down 0.28%.
Major European markets were mostly higher. German (DAX) gained 1.04%, France CAC 40 fell 0.70%, London FTSE 100 up 0.31%.
Market And Sector Dynamics
Stocks opened the trading day higher, with the Dow up 80 points, Nasdaq up 26 points, and the S&P up 11 points. Shares of Goldman Sachs, and Bank of America are both higher, after passing the Federal Reserve Stress Test, yesterday.
Stocks held on in positive territory for most of the session, although investors took markets down shortly after the open, as cautious investors looked for any sign from the G20 Summit, that Trump's planned meeting with China's Xi, on the sidelines, will at least serve to resume negotiations.
Investor seems to have convince themselves that, that would be the likely outcome, so they pushed markets higher in the afternoon, with the Dow reaching a high of 107 points. Stocks pulled back later in the afternoon session, but did managed to hold on to most of the afternoon's gains.
Today's rally was fairly broad based, with all eleven S&P sectors closing with gains. Financials, Energy, Industrials, Basic Materials, Utilities, Healthcare, and Real Estate, were the outperformers.
Factors Influencing Today's Market
A quality earnings quarter from Nike, was well received by investors.
Financials got some love from investors today, after acing the annual Federal Reserve Stress Test.
WTI crude oil price closed at $52.47/barrel, down 1.62%.
This week's Baker Hughes Oil Rig Count rose 4 rigs to 793.
June's Chicago PMI came in at 49.7, and below the 50 mark for the first time in two and a half years.
June Consumer Sentiment was lower than expected 98.2 vs the 100 peak read in May.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading on Friday, the three major indices were higher. The Dow climbed 73.38 points, Nasdaq up 38.49 points, and the S&P gained 16.84 points. Total NYSE volume traded, a heavy 5.38 billion shares. Advancing shares outpaced Declining shares 2.71:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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