Wednesday's Market Recap - Stock Rally After Ukraine Transcript Release And Hope For China Deal.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing lower, mimicking trading in Asian markets overnight. Dow futures are down 33 points, Nasdaq futures down 24 points, and the S&P futures down 5 points. Investors are also cautious after the US House of Representatives, announced the formal Impeachment Inquiry into the President, late yesterday evening. The White House also announced yesterday that they would release the transcript of the President phone call with the Ukraine President, asking him to investigate former Vice President Biden, and his son.
On The Bond Desk:
The US 10 Year Bond Yield at 1.64%, down 0.07%.
Currency Desk:
Euro dollar: 1.64%
UK Pound: 1.09
Crude Oil:
WTI crude oil futures $56.48/barrel, down 1.41%.
On the Earnings Calendar:
Nike had blowout quarterly earning results after the bell last evening.
In M&A News:
Peloton will prices its IPO after the closing bell today.
What About The Asian And European Markets?
Major Asian markets closed with losses. Japan (Nikkei 225) down 0.36%, Shanghai down 0.10%, Hong Kong (Hang Seng) up 1.26%.
Major European markets were also down. German (DAX) down 0.59%, France CAC 40 fell 0.79%, London FTSE 100 down 0.02%.
Market And Sector Dynamics
Stocks opened moderately higher. The Dow gained 66 points, Nasdaq slipped 3 points, and the S&P added 1 point. Most of the early gains attributable to Nike, which reported a blowout quarter after the close of business last evening.
Markets remained higher for a short while after the open, before losing steam. By 10:00 AM, stocks were almost at the flat line just before release of the memo/transcript of the President's phone call with the the President of Ukraine. After the release stock rebounded, and remained at those elevated levels, for the remainder of the session.
At a press availability this morning at the UN the President had a chance to respond to the released document, saying he did nothing wrong, and also delivered his customary through away line to the markets - 'We could have a deal with China sooner that you think."
Today's rally was broad based and positive, with eight of the eleven S&P sectors closing with gains. Technology, Communication Services, Consumer Discretionary, Financials, Industrials, and Energy.
Factors Influencing Today's Market
Strong blowout earnings by Nike pushed stocks higher at the open.
Stock fell shortly after the open on worry that about impending release of Trump/Ukraine transcript, but rebounded after the release.
WeWork CEO steps down after failed IPO attempt due to governance issues, and lack of investor interest.
Ebay CEO also steps down.
August New Home Sales (annual rate) surged higher to 713K vs 662K expected, and above a revised 666K for July.
WTI Crude Oil prices closed at $56.49/barrel, down 1.40%.
This week's EIA Petroleum Status Report shows US crude oil inventories rose 2.4 million barrels, vs 1.1 million barrels last week.
US 10 Year Bond Yield closed today at 1.737%, up 5.15%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended the markets recorded solid gains. The Dow jumped 162.94 points, Nasdaq gained 83.76 points, and the S&P rose 18.27 points. Total NYSE volume traded, a modest 3.38 billion shares. Advancing shares outpaced Declining shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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