Thursday's Market Recap - Stocks Surge As US China Trade Talks Set To Resume October.
What is The Premarket Telling Us?
7:00 AM.
US stocks are significantly higher early on news that US and China will begin talks in October. Dow futures up 255 points, Nasdaq 94.25 points, and S&P up 27 points. Asian markets were mostly higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.46%, down 0.01%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at $56.09/barrel, down 0.30%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mostly higher. Japan (Nikkei 225) rose 2.12%, Shanghai up 0.96%, Hong Kong (Hang Seng) down 0.03%.
Major European markets were mixed. German (DAX) up 0.85%, France CAC 40 up 1.11%, London FTSE 100 down 0.55%.
Market And Sector Dynamics
Stocks opened the trading day with solid gains, after new broke this morning that US and China will resume trade talks in October. Also helping markets this morning is the ADP Private Payroll, which showed private sector payroll rose 195,000 vs 148,000 expected. The Dow gained 280 points, Nasdaq rose 85 points, and the S&P rose 24 points. WTI Crude Oil was also higher early, at $56.87/barrel, up 1.07%.
Investor were definitely in a 'risk on' mode today, with markets holding on to elevated levels for the entire trading session, largely base on US China trade talk optimism, and some decent US economic data.
Market tone was very positive, and fairly broad based. Eight of the eleven S&P sectors, closed the day with gains, led by Technology, Consumer Discretionary, Financials, Industrials, Communication Services, Energy, and Healthcare. Utilities, Real Estate, and Consumer Staples ended lower.
Factors Influencing Today's Market
Investor optimism on news that US and China will resume talks in October.
Strong August ADP Private Payroll came in 195,000 vs 148,000 estimated.
Asian markets traded higher in their session, ahead of the opening of our markets.
The week's Initial Jobless Claims fell 1,000 to 217,000 claims.
This week's EIA Petroleum Status Report shows crude oil inventories fell 4.8 million barrels, 5.4% above levels of the same time last year.
WTI Crude Oil price closed at $56.30/barrel, up 0.07%.
The US 10 Year Bond Yield closed the day at 1.565%, up 6.39%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the Dow soared 372.68 points, Nasdaq jumped 139.95 points, and S&P rose 38.22 points. Total NYSE volume traded, a moderate 3.89 billion shares. Advancing shares outpaced Declining shares by 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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