Thursday's Market Recap - Stocks Begin The New Year In Blockbuster Gains.
What is The Premarket Telling Us?
7:30 AM.
US stock futures are convincingly higher on the first trading day of 2020. Dow futures are up 165 points, Nasdaq futures up 62 points, and S&P futures up 18.25 points. Asian markets were mostly higher overnight, as China cut bank reserve requirements, in an effort to stimulate small business lending. Also contributing to market sentiment, an announcement by President Trump that signing of the phase 1 trade deal will take place on January 15th. So far, no comment from the Chinese side.
On The Bond Desk:
The US 10 Year Bond Yield at 1.92%, up 0.02% or two basis points.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $61.03/barrel, down 0.03%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets mixed to start the year. Japan (Nikkei 225) down 0.76%, Shanghai %rose 1.15, Hong Kong (Hang Seng) gained 1.25%.
Major European markets also closed higher. German (DAX) gained 1.03%, France CAC 40 1.06%, London FTSE 100 rose 0.82%.
Market And Sector Dynamics
Markets were off to a solid start to begin the new year of trading. The Dow rocketed 127.07 points, Nasdaq gained 86.68 points, and the S&P gained 17.21 points.
Investors were surely in risk on mood in today's session, buoyed by new that China Central Bank cut its bank reserve rate, in an effort to stimulate lending to small businesses.
Markets melted up gradually, as the session progressed on optimism that the stage is set for continuation of market momentum for this year. The Fed is on hold, no sign of a recession on the horizon, a phase on trade deal seems imminent, the USMCA (new NAFTA) was recently approved by the House of Representatives, and Brexit now seems plausible. Short of any unforeseen or 'black swan' event, the coast appears to be clear.
Today's rally fairly broad based, with seven of the eleven S&P sectors ending the day with gains, led by Industrials, Technology, Communication Services, Consumer Discretionary, Financials, and Energy. Utilities, Real Estate, Basic Materials, and Consumer Staples close lower.
Factors Influencing Today's Market
China's Central Bank cut its reserve requirement rate overnight to stimulate small business lending.
Asian markets were mostly higher in their session. European stock closed higher as well.
WTI Crude Oil closed slightly lower today at $61.15/barrel, down 0.29%.
US 10 Year Bond Yield lost ground today to close at 1.877%, down 2.29%.
December Initial Jobless Claims fell 2000 to 222,000 claims, in line with expectations.
December Purchasing Managers Index (PMI) came in as expect at a moderate 52.5.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed stocks were solidly higher on the first day of trading for 2020.
The Dow surged 330.36 points, Nasdaq gained 119.58 points, and the S&P rose 27.07 points. Total NYSE volume traded, a modest 3.55 billion shares. Advancing shares outpaced Declining shares by 1.58:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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