Thursday's Market Recap - Stocks Surge After WHO Declares Global Health Emergency For Coronaviru
What is The Premarket Telling Us?
7:00 AM.
US stock futures are under pressure from fear of the coronavirus, spreads, mostly in China, and isolated areas globally. Dow futures down 232 points, Nasdaq futures down 64 points, and the S&P futures lost 27 points. Chinese markets remain closed, but Japan was higher overnight.
Forth Quarter GDP came in at consensus 2.1%
On The Bond Desk:
The US 10 Year Bond Yield at 1.59%, down 0.05%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $52.11/barrel, down 2.29%.
On the Earnings Calendar:
Microsoft reported a blowout Q4 results last evening.
Facebook also beat earnings and revenue estimates, but its rate of growth seems to be slowing.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up 0.95%, Shanghai closed, Hong Kong (Hang Seng) closed.
Major European markets were solidly lower, on the eve of Britain's exit from the European Union. German (DAX) down 1.25%, France CAC 40 down 0.91%, London FTSE 100 down 1.32%.
Market And Sector Dynamics
Stocks opened the trading day lower under pressure from the fear on the coronavirus could spread exponentially. The Dow fell 141 points, Nasdaq lost 57 points, and the S&P was down 22 points.
Markets were lower for all of the morning, and most of the afternoon session, but turned around in late afternoon when news broke that the World Health Organisation (WHO) formally declared a Global Health Emergency, due to the coronavirus. Stocks turned positive shortly after 3:00 PM., and gained momentum into the close.
Fourth Quarter GDP came in at 2.1%, as expected, and is a positive catalyst for the markets.
Markets were fairly balance, with seven of the eleven S&P sectors, closing the session higher, led by Financials, Consumer Staples, Utilities, Energy, Technology, and Real Estate. Healthcare, Communication Services, and Basic Materials, were today's laggards.
Factors Influencing Today's Market
The coronavirus numbers continues to rise in China, pressuring global markets.
Blowout Q4 Earnings performance from Microsoft was a positive catalyst for stocks.
Facebook also beat earnings and revenue, but it appears rate of growth is slowing.
Fourth Quarter GDP came in at 2.1% as was expected.
US 10 Year Bond Yield which has been ticking lower, closed at 1.580%, down 0.53%.
WTI Crude Oil closed the day at $52.88/barrel, down 0.84%.
This week's Intial Jobless Claims fell 7,000 claims to 216,000 claims.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed today, the Dow gained 124.99 points, Nasdaq gained 23.77 points, and the S&P rose 10.26 points. Total NYSE volume traded, a modest 3.83 billion shares. Advancing shares outpaced Declining shares by 1.09:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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