Friday's Market Recap - US China Partial Trade Deal Juiced Stocks Today.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are jumping higher this morning, on optimism the China and US trade negotiators will come to some agreement (more likely a truce) at the end of their talks this morning. Dow futures surged 234 points, Nasdaq futures up 79 points, and S&P futures rose 26 points.
On The Bond Desk:
The US 10 Year Bond Yield at 1.66%, up 0.07%, or seven basis points.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $54.52/barrel, up 1.81%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets jumped higher last night on optimism around some king of US China trade deal. Japan (Nikkei 225) gained 1.15%, Shanghai rose 0.88%, Hong Kong (Hang Seng) surged 2.34%.
Major European markets also closed with solid gains on optimism around Brexit. German (DAX) jumped 2.86%, France CAC 40 gained 1.73%, London FTSE 100 rose 0.84%.
Market And Sector Dynamics
Stocks rallied at the opening bell, with the Dow up 266 points, Nasdaq up 47 points, and the S&P rose 30 points. The potential for an announcement of a US China trade deal, later this afternoon, is juicing markets. Twenty minutes after the open stock ticked even higher. The Dow surged 314 points, Nasdaq gained 100 points, and the S&P up 33 points. By 11:35 AM the Dow hit 500 points, the high of the morning.
Markets pulled back slightly, from the early highs during the afternoon session
as investors awaited the announcement of the trade deal, from the White House. Shortly before the news came, the Dow had surged more than 515 points. Once the new was released, markets pulled back moderately, nearly 200 points. Investors interpreted this deal as skinny deal,with some tariffs postponed.
Eight of the eleven S&P sectors closed with gains, led by Industrials, Basic Materials, Technology, Energy, Financials, Consumer Discretionary, Communication Services, and Healthcare. Utilities, Real Estate, and Consumer Staples were the lagging sectors.
Factors Influencing Today's Market
White House announced a 'Substantial Phase 1 deal with China. Shares pulled back after the deal was announced
Some optimism about about Brexit, and the Irish backstop, sending European stocks higher
WTI Crude Oil prices closed at $54.70, up 2.15%.
This week's Baker Hughes Oil Rig Count rose 2 rigs to 712 total.
US 10 Year Bond Yield closed at 1.731%, up 3.83%
Asian and European market all closed with gains.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session, all the indices were higher. The Dow jumped 319.92 points, Nasdaq rose 106.26 points, and the S&P rose 32.14 points. Total NYSE volume traded, a modest 3.64 billion shares. Advancing shares outpaced Declining shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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