Wednesday's Market Recap - A Dovish Fed Chairman Gave Markets Exactly What They Wanted Today.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are lower at this hour in the premarket. Dow futures down 77 points, Nasdaq futures down 28 points, and S& P futures down 9 points. Asian markets were flat to lower overnight.
All eyes will focus on Capitol Hill today, where Fed Chair Jerome Powell, will deliver his semiannual testimony before the House Banking Committee.
On The Bond Desk:
The US 10 Year Bond Yield 2.06%, up 0.03%.
Currency Desk:
Euro dollar: 1.12
UK Pound:1.24
Crude Oil:
WTI crude oil futures at $59.21/barrel, up 2.39%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed in today's session. Japan (Nikkei 225) down 0.15%, Shanghai down 0.44%, Hong Kong (Hang Seng) gained 0.31%.
Major European markets were modestly lower. German (DAX) down 0.51%, France CAC 40 slipped 0.08%, London FTSE 100 down 0.08%.
Market And Sector Dynamics
Markets opened the trading session convincingly higher, confirming the dovish stance on interest rate, following the early release the Fed Chair Powell's testimony, before he actually testifies.
The Dow surged 90 points, Nasdaq rose points, and the S&P gained 11 points. WTI crude oil also jumped higher early, currently at $59.43/barre, up 2.77%.
Markets remained positive for the entire trade session, buoyed by a dovish Fed, that all but confirmed, an interest rate cut at their meeting later this month. The market got exactly what it wanted. According to the Fed Chairman, uncertainty about global growth, trade uncertainty, continues to weigh on outlook.
The early market momentum did cool during the session as investor took some profits. Today's rally was broad based, with eight of the eleven S&P sector closing with gains, led by Energy, Communication Services, Technology, Communication Staples, Real Estate, Consumer Discretionary, Healthcare, and Utilities.
Factors Influencing Today's Market
Market liked what it heard from Federal Reserve Chairman, Jerome Powell, who signaled a rate cut for later this month.
This week's EIA Petroleum Status Report shows a strong draw down of crude oil inventories of (-9.5) million barrels vs (-1.1) million barrels.
WTI crude oil price closed the day at $60.43/barrel, up 4.50%.
The US 10 Year Bond Yield closed at 2.061%, down 0.53%.
Market Close Volume Traded And Advance Decline Ratio
Thanks primarily to Fed Chair, Jerome Powell's testimony, markets were all higher today. At the close, the Dow gained 76.71 points, Nasdaq rose 60.81 points, and the S&P gained 13.44 points. Total NYSE volume traded, a modest 3.17 billion shares. Advancing shares outpaced Declining shares 1.66:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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