Tuesday's Market Recap - After A Triple Digit Open Stocks Ended Flat.
What is The Premarket Telling Us?
7:00 AM.
US stock futures were modestly higher, with the Dow up 66 points, Nasdaq up 33 points, and the S&P rose 7 points. Asian markets were mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.55%, down 0.03%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $50.53/barrel, up 1.94%.
On the Earnings Calendar:
Under Armour quarterly result was hugely disappointing to the markets, sending the shares lower. The company blamed the coronavirus outbeak.
In M&A News:
T-Moblie and Sprint merger finally gets the approval of the Judge in New York, paving the way for completion of the transaction.
What About The Asian And European Markets?
Major Asian markets mostly up. Japan (Nikkei 225) down 0.60%, Shanghai up 0.39%, Hong Kong (Hang Seng) up 1.22%.
Major European markets all up. German (DAX) gained 0.99%, France CAC 40 up 0.65%, London FTSE 100 up 0.71%.
Market And Sector Dynamics
Markets did open the session higher, with the Dow surging 125 points, Nasdaq gained 52 points, and the S&P rose 14 points. The courts/Judge's approval of the T-Mobile/Sprint merger is a positive catalyst for stocks.
The Dow lost nearly all of those gains minutes after the open, reclaimed those losses by the midpoint of the morning session, with the Dow up nearly 150 points. Unfortunately, the Dow could not hold on to the gains, and so it fell back into negative territory for most of the afternoon session.
Despite today's volatility, market tone was mostly positive, with eight of the S&P sectors ending in positive territory, led by Real Estate, Energy, Consumer Discretionary, Healthcare, Basic Materials, Financials, Utilities, and Industrials. Communication Services, Technology, and Consumer Staples were lower today.
Factors Influencing Today's Market
Judge/Courts rule in favor of the T-Mobile/Sprint merger. Shares of T-Mobile soared higher.
Under Armour reported disappointing earnings result, and blamed coronavirus.
The US 10 Year Bond Yield closed at 1.602%, up 2.50%.
WTI Crude Oil closed at $49.94/barrel, up 0.75%.
December JOLTS report of job openings continues to trend lower at 6.423 Million vs 6.775 Estimated.
Both Asian and European markets were ended higher.
There were fewer new cases of coronavirus reported in China, indicating the situation may be getting better.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, the markets were flat to mixed. The Dow slipped a fraction 0.48 point, Nasdaq added 10.55 points, and the S&P rose 5.66 points. Total NYSE volume traded, a modest 3.76 billion shares. Advancing shares outpaced Declining shares by 2.20:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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