Thursday's Market Recap - US China Trade Optimism Boost Stocks For Second Day.
What is The Premarket Telling Us?
7:00 AM.
Flat describes the status of US stock futures this morning. Dow futures down 21 points, Nasdaq futures flat, and S&P futures down 1 point. The latest round of US China negotiation begins this morning in Washington, DC. Overnight there was talk that the Chinese delegation, may cut negotiations short, and depart on Thursday evening. The situation appear to be very fluid.
On The Bond Desk:
The US 10 Year Bond Yield at 1.59%, up 0.05%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.22
Crude Oil:
WTI crude oil futures $52.51/barrel, down 0.15%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) up 0.69%, Shanghai up 0.78%, Hong Kong (Hang Seng) rose 0.10%
Major European markets also closed with gains. German (DAX) gained 0.58%, France CAC 40 up 1.27%, London FTSE 100 added 0.28%.
Market And Sector Dynamics
Markets started today's session flat to slightly lower, with the Dow down 5 points, Nasdaq down 1 point, and S&P down 2 points. Investors are weighing possible of outcomes from of China Trade talks, taking place in Washington. No one thinks, a big deal will happen. Instead, market are hoping for removal or roll back of tariffs, and deal for China to buy more Soybeans. Market just want to have this out of the way.
Stock turned positive shortly after the open, once investors learned that the President and China's head negotiator, Leo Hur will have lunch at the White House tomorrow, Friday. Markets took that as a positive sign, and that sent stocks climbing higher. At the high the Dow up 257 points, shortly after 11:00 AM.
Markets pulled back from the morning high, shortly after midday, and remained at or near those levels, into the close.
Today's rally was broad based. Nine of the eleven S&P sectors closed with modest gains, led by Energy, Financials, Basic Materials, Industrials, Communication Services, Technology, Consumer Discretionary, and Consumer Staples.
Factors Influencing Today's Market
Optimism about US China trade negotiations.
Asian and European market closed the session higher.
September CPI came in soft flat as was expected vs 0.1%.
WTI Crude Oil prices closed higher at $53.91/barrel, up 2.51%.
US 10 Year Bond Yield close today at 1.670%, up 5.23%.
Market Close Volume Traded And Advance Decline Ratio
Markets were all higher today. The Dow climbed 150.67 points, Nasdaq gained 47.04 points, and the S&P futures up 18.73 points. Total NYSE volume traded, a modest 3.26 billion shares. Advancing shares outpaced Declining shares by 1.64:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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