Tuesday's Market Recap - Another Risk On Session Despite Backdrop Of Coronavirus.
What is The Premarket Telling Us?
8:00 AM.
US stock futures are in the stratosphere this morning. Dow futures are up 348 points, Nasdaq futures up 127 points, and S&P futures up 39 points. China was higher last night, as the Chinese government pumped more liquidity into the system, to offset any dislocation in the economy. Major Asian markets rallied sharply while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 1.52%, unchanged.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $50.94/barrel, up 1.66%.
On the Earnings Calendar:
Alphabet/Google reported mixed earning after the close yesterday. The company beat earnings, but revenues came in slightly less than expected.
Ralph Lauren and Clorax handily beat Q4 Earnings results.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets rebounded overnight. Japan (Nikkei 225) gained 0.49%, Shanghai jumped 1.34%, Hong Kong (Hang Seng) rose 1.21%.
Major European markets closed solidly higher. German (DAX) soared 1.66%, France CAC 40 gained 1.67%, London FTSE 100 rose 1.55%.
Market And Sector Dynamics
Markets opened for trading significantly higher. The Dow surged 394 points, Nasdaq soared 129 points, and the S&P jumped 39 points. WTI crude oil also started the day higher at $50.71/barrel, up 1.21%. Stocks are responding to the following pieces of positive news - China has pumped additional liquidity into the system overnight. Signs that China's effort to get the coronavirus under control may be working. Strong Q4 earnings results from Ralph Lauren (RL), and Clorax (CLX).
Stock remained at significantly elevated for the entire session. At the high of the session the Dow was up nearly 500 points.
Today's rally was broad based, and very positive. Ten of the eleven S&P sectors finished the day higher, led by Technology, Industrials, Consumer Discretionary, Basic Materials, Healthcare, Real Estate, Financials, Communication Services, Consumer Staples, and Energy.
Factors Influencing Today's Market
Major Asian markets surged overnight, as China appears to be getting a better handle on coronavirus.
China pumps more liquidity in the system.
Strong Q4 Earnings from Ralph Lauren, and Clorax.
WTI crude oil closed at $49.59/barrel, down 1.04%.
US 10 Year Bond Yield closed at 1.603%, up 5.41%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, all three indexed were solidly higher. The Dow gained 407.82 points Nasdaq gained 194.57 points, and the S&P rose 48.67 points. Total NYSE volume traded, a modest 3.97 billion shares. Advancing shares outpaced Declining shares by 2.53:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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