Monday's Market Recap - A Late Day Rally Led Stocks To Gains In Session.
What is The Premarket Telling Us?
8:00 AM.
Rising tensions between the US and Iran continues to roil markets. US stock futures are deep into negative territory, indication a down open. Dow futures are down 173 points, Nasdaq futures down 63 points, and S&P futures down 18 points.
On The Bond Desk:
The US 10 Year Bond Yield sits at 1.79%, down 0.09% or nine basis points.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $63.63/barrel, up 0.92%.
On the Earnings Calendar:
None.
In M&A News:
Xerox continues its effort to get HP to the negotiating table, in its quest to acquire the company.
What About The Asian And European Markets?
Major Asian markets closed their session with losses. Japan (Nikkei 225) lost 1.91%, Shanghai down 0.01%, Hong Kong (Hang Seng) lost 0.79%.
Major European markets also closed lower today. German (DAX) lost 0.70%, France CAC 40 down 0.51%, London FTSE 100 fell 0.62%.
Market And Sector Dynamics
Stock opened the trading session significantly lower, under pressure from rising tensions between the US and Iran, after the killing of General Soleimani. The Dow fell 170 points, Nasdaq lost 63 points, and the S&P was down 16 points. Gold prices continue higher, so does the price of crude oil. WTI crude oil up $63.52/barrel, up 0.75%.
At the low of the morning, the Dow sank, more than 200 points. However, in a repeat of yesterday's early trading, stocks gradually recovered, returning to positive territory just before 2:00 PM. Shortly before the close investors went of a 2 billion shares buying spree, pushing stock higher into the close.
Today's rally was fairly broad based, with eight of the eleven S&P sectors closing with gains, led by Communication Services, Energy, Healthcare, Consumer Discretionary, Technology, Utility, Consumer Staples, and Real Estate. Basic Materials was the main laggard in the session.
Factors Influencing Today's Market
Residual fallout from the killing of the Iranian General, Soleimani, and potential retaliation from Iran keeps investors cautious, and on the alert.
Asian and European closed lower in today's sessions.
Gold continues to gain ground, in a modest flight to quality trade.
WTI Crude Oil closed at $63.27/barrel, modestly lower by 0.35%.
US 10 Year Bond Yield regained some ground today, to close at 1.809%, up 2.37%.
December PMI Services Index rose slightly to 52.80 vs 52.20 consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's trading session markets were moderately higher. The Dow gained 68.50 points, Nasdaq rose 50.70 points, and the S&P added 11.43 points. Total NYSE volume traded, a modest 3.75 billion shares. Advancing shares outpaced Declining shares by a modest 1.16:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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