Friday's Market Recap - Investors Conflicted After Announcement Of US China Phase 1 Deal.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are solidly higher at this hour, on news of a trade deal between the US and China. Dow futures are up 124 points, Nasdaq futures up 44 points, and S&P futures up 12 points. Futures turned lower later on some uncertainty surrounding the US China deal, and conflicting news about the rolling back of tariffs.
On The Bond Desk:
The US 10 Year Bond Yield at 1.90%, up 0.11%.
Currency Desk:
Euro dollar:1.11%
UK Pound:1.33%
Crude Oil:
WTI crude oil futures at$59.81/barrel, up 1.06%.
On the Earnings Calendar:
Adobe reports strong quarterly earnings, sending shares of the company higher.
COSTCO also reported better than expected earning, but shares are down, as investors
feel the stock is priced for perfection.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets cheered a potential US China trade deal. Japan (Nikkei 225) up 2.55%, Shanghai up 1.78%, Hong Kong (Hang Seng) gained 2.57%.
Major European markets closed higher after Boris Johnson's convincing win in the British elections. German (DAX) gained 0.46%, France CAC 40 rose 0.59%, London FTSE 100 gained 1.10%.
Market And Sector Dynamics
Stocks opened the trading day lower, as investors seem conflicting news around the US China trade deal. The Dow fell 30 points, Nasdaq fell 13 points, and the S&P lost 6 points. Stocks turned around shortly after the open, as investors cheered new of the trade deal, including the postponing
of the tariffs schedule to take effect on Sunday, December 15th.
Shortly after 10:00 AM, the Dow surged to a high of 132 points, but turned lower a short time later, after a press conference by China trade negotiators, described the deal in general terms, and no specifics. Failing any additional clarity from the White House or trade negotiators, markets hugged the flat line for the remainder of the session.
Market breath was mostly balanced, with six of eleven S&P sectors ending the session with modest losses, led by Energy, Basic Materials, Financials, Communication Services, and Industrials. Utilities, Technology, and Consumer Staples, finished higher.
Factors Influencing Today's Market
Conflicting news about the announced phase 1 US China trade deal.
Better than expected quarterly earnings results from Adobe and COSTCO.
British voters gave Prime Minister Boris Johnson a resounding election victory.
Major Asian and European markets closed higher in their sessions.
WTI Crude Oil closed higher today at $60.07/barrel, up 1.50%.
This week's Baker Hughes US Oil Rig Count fell 3 rigs to 799, the lowest level since March 2017.
US 10 Year Bond Yield closed lower, at 1.824%, down 3.80%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, stocks were mostly unchanged. The Dow added 0.23 point, Nasdaq gained 17.56 points, and the S&P added 3.28 points. Total NYSE volume traded, a most 3.82 billion shares. Advancing shares outpaced Declining shares by 1.07:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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