Wednesday's Market Recap - Stock Surges On Signing Of China Trade Deal, Even With Articles Of Im
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mildly negative at this hour. Dow futures down 11 points, Nasdaq futures down 7 points, and S&P futures down 2 points. Asian markets were mixed in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 1.82%, down 0.04%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $58.27/barrel, up 0.07%.
On the Earnings Calendar:
Bank of America, and Goldman Sachs beat Q4 earnings estimates, but share of both banks are trading lower.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were lower. Japan (Nikkei 225) down 0.45%, Shanghai down 0.54%, Hong Kong (Hang Seng) down 0.39%.
Major European markets were mixed in their session. German (DAX) fell 0.18%, France CAC 40 down 0.14%, London FTSE 100 up 0.27%.
Market And Sector Dynamics
Stocks opened mixed, with the Dow down 39 points, Nasdaq up 2 points, and the S&P slipped 1 point. WTI Crude Oil began the day mildly lower, at $57.99/barrel, down 0.41%. Shares of Bank of America, and Goldman Sachs traded lower, shortly after the open, even though both banks beat fourth quarter earnings, before the start of trading this morning.
Stock turned around after the open, as investors anticipate the signing of the US China phase 1 trade deal scheduled for around 11:00 AM, at the White House. At the high of the day the Dow was up nearly 180 points, shortly before the signing of the deal.
Stocks pulled back after the deal was signed, as investors invoked the doctrine 'buy on the rumor sell on the news.' Markets tried to make another attempt to rally higher in the mid-afternoon, but sold off those highs, shortly before the close.
The late afternoon pull back could also be attributable to a sell off in bank shares, as the US 10 Year Bond Yield slipped lower, shortly before the close of trading.
Factors Influencing Today's Market
China and the US signed the phase 1 trade deal, even as some still question it ultimate impact of it.
Strong fourth quarter earnings by Bank of America, and Goldman Sachs, but bank shares traded lower.
The House of Representative approved and transmitted Articles of Impeachment to the Senate.
December Producer Price Index PPI rose 0.1% vs 0.2% expected.
The US 10 Year Bond Yield ended the day at 1.786%, down 1.49%.
WTI Crude Oil price close the day at $57.81/barrel, down 0.72%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell/draw -2.5 million barrels.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, all the major indices were higher. The Dow gained 90.55 points, Nasdaq rose 7.37 points, and the S&P rose 6.14 points. Total NYSE volume traded, a light 2.45 billion shares. Advancing shares outpaced Declining shares by 1.31:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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