Wednesday's Market Recap - Stocks Surge After FOMC Cut Rates And Are On Hold.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are flat at this hour. Dow futures down 5 points, Nasdaq futures up 1 point, and S&P down 0.50, a fraction. Investor are exercising caution ahead of the FOMC announcement later this afternoon. The market is expecting a twenty five basis point rate cut. First read on US GDP came in at a better than expected 1.90% vs 1.60%.
On The Bond Desk:
The US 10 Year Bond Yield at 1.84%, down 0.01%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $55.47/barrel, down 0.57%.
On the Earnings Calendar:
GE handily beats Q3 earnings and revenue expectations before the bell this morning
Apple, Facebook, reports Q3 Earnings after the closing bell today.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were lower overnight. Japan (Nikkei 225) down 0.57%, Shanghai down 0.50%, Hong Kong (Hang Seng) down 0.44%.
Major European markets. German (DAX) down 0.23%, France CAC 40 up 0.45%, London FTSE 100 up 0.34%.
Market And Sector Dynamics
Stocks opened modestly higher. Dow rose 20 points, Nasdaq rose 7 points, and the S&P was up 2 points. WTI Crude Oil slightly lower at $55.38/barrel, down 0.29%.
A strong Q3 earnings performance from General Electric provided a modicum of positive sentiment to the markets, along with a better than expected 1.90% first read of Q3 GDP vs 1.60% estimate.
Stocks hung around close to the flat line for most of the morning, and early afternoon session, as investors awaited the FOMC interest rate decision.
Markets turned higher after the FOMC delivered a twenty five basis point rate cut, and continued higher during the Fed Chair's press conference, and closed at the high of the day.
Today's rally was fairly broad based with eight of the eleven S&P sectors ending the session with gains, led by Utilities, Healthcare, Real Estate, Technology, Consumer Discretionary, Consumer Staples, Industrials. The Energy sector bore the brunt of the losses, in the session.
Factors Influencing Today's Market
The Fed/FOMC cut interest rates by twenty five basis points, and says they are on hold.
Stocks surge on rate cut news.
First read on 3 Quarter GDP came in at a better than expected 1.90% vs 1.70 estimated.
Q3 Earnings season so far, has been better than expected.
General Electric (GE) handily beat Q3 Earning performance expectation.
US 10 Year Bond Yields continues to rise. Closed the day at 1.775%, down 3.38%.
WTI Crude Oil price closed at $55.06/barrel, down 0.86%.
This week's Crude Oil Inventories rose 5.7 million barrels, to 438.9 million barrels.
This week's ADP Employment number rose by 125,000 as expected.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed for the day, all the major indices were higher. The Dow gained 115.27 points, Nasdaq rose 27.12 points, and the S&P added 9.88 points, a new all time record. Total NYSE volume traded, a modest 3.78 billion shares. Advancing shares outpaced Declining shares by 1.12:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments