Monday's Market Recap - A Genuine Merger Monday Sent Markets Soaring Today.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are all positive this morning. The Dow futures up 68 points, Nasdaq futures up 27 points, and S&P futures up 7 points. Today can truly be described as 'Merger Monday', with the announcement of three mergers, in three separate industries. Schwab has formally announced its bid for $29.00 Billion for TDAmeritrade. Luxury Brands consolidator, LVMH is buying Tiffany for $17 Billion, and Novartis signs a definitive agreement to acquire The Medicine Company for $9.7 Billion.
On The Bond Desk:
The US 10 Year Bond Yield at 1.77%, unchanged.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $57.72/barrel, down 0.09%.
On the Earnings Calendar:
None
In M&A News:
Schwab to acquire TDAmertrade in a deal worth $26 Billion.
Luxury Brands, LVMH is acquiring Tiffany for $17 Billion.
Novartis to acquire The Medicine Company for $9.7 Billion.
What About The Asian And European Markets?
Major Asian markets gained today. Japan (Nikkei 225) up 0.78%, Shanghai up 0.72%, Hong Kong (Hang Seng) up 1.50%
Major European markets were also higher. German (DAX) up 0.63%, France CAC 40 up 0.54%, London FTSE 100 up 0.95%.
Market And Sector Dynamics
Stock opened for trading solidly higher, with the Dow up 82 points, Nasdaq gained 49 points, and the S&P gained 10 points. Investors are responding some positive global and local events. First, the elections in Hong Kong ended up being a landslide for the democratic movement, and against China. In Europe, the German economy reported some better than expected data overnight. Also, in what can be described in a true 'Merger Monday,' with three major mergers formally announced today.
Markets gradually climbed higher during the entire session, as strong participation from all sectors, to close at the high of the day.
Today's rally saw ten of the eleven S&P sectors ended the day with moderate to gains, led by Technology, Healthcare, Consumer Discretionary, Industrials, Financials, Basic Materials. Utilities were lower.
Factors Influencing Today's Market
Three big mergers was provided positive sentiment for today's rally.
With a reported 70% turnout, the democratic movement won a landslide victory in Hong Kong elections, held on Sunday.
Reports out of China indicates some optimism for a US China phase 1 trade deal.
Major Asian and European markets closed their sessions with gains.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, the Dow soared 190.85 points, Nasdaq gained 112.60 points, and S&P gained 23.35 points. Total NYSE volume traded, a modest 3.51 billion shares. Advancing shares outpaced Declining shares by 2.65:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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