Tuesday's Market Recap - Strong Corporate Earning And Possible Resumption Of US China Talks Push
What is The Premarket Telling Us?
7:00 AM.
Stock futures are moderately higher, two and a half hours before the opening bell. Dow futures up 84 points, Nasdaq up 31 points, and S&P futures up 8.75 points. In Britain, Boris Johnson has been selected by vote to be the leader of the Conservative Party. He will become Britain's next Prime Minister.
On The Bond Desk:
The US 10 Year Bond Yield at 2.04%, down 0.05%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $55.91/barrel, down 0.55%.
On the Earnings Calendar:
Coke, Hasbro, United Technologies, Kimberly Clarke, and Biogen, beats analyst earnings expectations.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) up 0.95%, Shanghai up 0.45%, Hong Kong (Hang Seng) up 0.34%.
Major European markets were higher. German (DAX) gained 1.64%, France CAC 40 up 0.92%, London FTSE 100 up 0.56%.
Market And Sector Dynamics
Markets opened solidly higher, with the Dow up 100 points, Nasdaq up 37 points, and S&P up 11 points. Investors are responding favorably to agreement on a spending bill, by the leaders of congress and the White House, better than expected earnings from companies like, United Technology, Coco Cola, Kimberley Clarke, and toy maker, Hasbro.
Stocks remained elevated for most of the morning session, and early afternoon session. Stocks ticked higher, a short while later, when news broke that Treasury Secretary, Steven Mnuchin, and US Trade Representative, Robert Lighthizer, would be going shortly to China, to continue trade negotiations.
Today's rally was broad based, with ten of the eleven S&P sector closing with gains, led by Basic Materials, Industrials, Financials, Real Estate, Consumer Staples, Healthcare, Consumer Discretionary, and Technology. Utilities were lower today.
Factors Influencing Today's Market
A cavalcade of better than Q2 expected earnings from US corporations.
US Treasury Secretary and US Trade Representative.
Boris Johnson will become the next British Prime Minister.
WTI crude oil closed up today, at $56.77/barrel, up 0.98%.
The US 10 Year Bond Yield ticked up today, and closed at 2.078%,up 1.37%.
June Existing Home Sales came in softer than expected at 5.270 million vs 5.320 expected.
Market Close Volume Traded And Advance Decline Ratio
At the close, markets were slightly higher. The Dow climbed 177.29 points, Nasdaq rose 47.25 points, and the S&P up 20.24 points. Total NYSE volume traded, modest 3.36 billion shares. Advancing shares outpaced Declining by 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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