Wednesday's Market Recap - Stocks Up On Strong Earnings From Target And Lowe's, And A Fluid
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing moderately higher, indicating we could have a 'risk on' session at the open. Dow futures up 170 points, Nasdaq futures up 66 points, and S&P up 22 points. The US 10 Year Bond Yield seems to be a little less volatile.
On The Bond Desk:
The US 10 Year Bond Yield at 1.56%, down 0.04% or four basis points.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $56.80/barrel, up 1.19%.
On the Earnings Calendar:
Both Target, and Lowe's reported strong quarterly earnings and revenues. Shares of both companies surged higher.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) fell 0.28%, Shanghai up 0.01%, Hong Kong (Hang Seng) up 0.15%
Major European markets closed with gains. German (DAX) up 1.30%, France CAC 40 up 1.40%, London FTSE 100 up 1.11%.
Market And Sector Dynamics
Stocks opened solidly higher at the start of trading. The Dow jumped 226 points, Nasdaq up 73 points, and the S&P gained 25 points. Lately, markets have been laser focused on the US 10 Year Bond Yield. When the yield falls, so does the markets, and when the yield rises, markets rises as well.
The Dow remained solidly elevated for the entire session, reaching a high of nearly 300 point, around noon, as investors cheer the strong quarterly earning performance from retailer, Target, and home improvement retailers, Lowe's.
Today's rally was very positive, and broad based. All eleven S&P sector closed the session with solid gains. Consumer Discretionary, Technology, Energy, Healthcare, Industrials, Utilities, Materials, Real Estate, Financials, and Communication Services.
Factors Influencing Today's Market
Strong quarterly earnings report from Target, and Lowe's.
The US 10 Year Bond Yield closed the day at 1.591%, up 2.51%.
Anticipation of Fed Chair, Powell's speech in Jackson Hole, Wyoming, on Friday.
July Existing Home Sales grew modestly to 5.420 million vs 5.385 million expected.
This week's EIA Petroleum Status Report show an inventory draw down of 2.7 million barrels, to 437.8 million barrels.
WTI crude oil close the day at $55.98/barrel, down 0.64%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, the Dow surged 240.29 points, Nasdaq gained 71.65 points, and the S&P gained 23.92 points. Total NYSE volume traded, a light 3.01 billion shares. Advancing shares outpaced Declining shares by 2.46:1
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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