Wednesday's Market Recap - Stocks Rally As Investor Sentiment Shifts From Recession To Risk On.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mostly flat, ahead of the start of trading. Dow futures up 24 points, Nasdaq futures down 3.50 points, and S&P futures were fractionally 0.24 points lower. Major Asian markets were mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 1.70%, up 08%, or eight basis points.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at $58.03/barrel, up 1.10%.
On the Earnings Calendar:
None.
In M&A News:
Hong Kong stock exchange makes a $37 billion bid for the London Stock Exchange..
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) rose 0.96%, Shanghai down 0.41%, Hong Kong (Hang Seng) up 1.78%.
Major European markets were higher. German (DAX) gained 0.74%, France CAC 40 up 0.44%, London FTSE 100 rose 0.96%.
Market And Sector Dynamics
Markets opened the session mostly unchanged. The Dow added 1.60 point, Nasdaq added 5.55 points, and the S&P slipped 0.67 point.
Investor seems to be gaining confidence, that the fed and global central banks will remain dovish as long as global economies continue to show signs of decline, due in large part to looming effects of the US China trade war. Today's session was also aided by a stabilization, and increase, in US 10 Year Bond Yield, over the last few trading days
Stocks melted upward shortly after the open, continuing its momentum into the close. The rally was broad based, confirming a rotation from large cap momentum sectors to small caps and other beaten down sectors of the market. Ten of the eleven S&P sectors closed the day with gains, led by Healthcare, Technology, Utilities, Basic Materials, Industrials, Financials, and Consumer Staples.
Factors Influencing Today's Market
A broad based sector rotation rally was the main catalyst for today's rally.
Asian and European markets were mostly higher in their session.
Hong Kong Stock Exchange makes a $37 billion bid for the London Stock Exchange.
WTI Crude Oil price closed at $56.20/barrel, down 2.09%.
US 10 Year Bond Yield closed the day at 1.746%, up 0.11%.
Producer Price Index (PPI) for August contracted drastically, 0.1% vs 0.2% July.
This week's EIA Petroleum Status Report shows US crude oil inventories fell 6.9 million barrels vs 4.8 million barrels in July.
Market Close Volume Traded And Advance Decline Ratio
Stocks closed today's trading session at or near the high of the day. The Dow surged 227.61 points, Nasdaq gained 85.92 points, and the S&P gained 21.54. Total NYSE volume traded, a modest 3.93 billion shares. Advancing shares outpaced Declining shares 2.54:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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