Monday's Market Recap - Stocks Soar On Promised Support From Central Banks, G7 Finance Ministers
What is The Premarket Telling Us?
7:00 AM.
US stock futures were all over the map overnight as investors around the globe grapple with the effects of coronavirus. Dow futures are up 13 points, Nasdaq futures up 23 points, and the S&P futures fell 4.85 points. Asian markets closed higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.13%, down 0.17%.
Currency Desk:
Euro dollar: 1.10
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $45.32/barrel, up 1.25%.
On the Earnings Calendar:
None of note.
In M&A News:
Gilead is buying FortySeven Inc., in a all cash deal for $95.50/share.
What About The Asian And European Markets?
Major Asian markets ended in positive territory. Japan (Nikkei 225) up 0.95%, Shanghai gained 3.15%, Hong Kong (Hang Seng) rose 0.62%.
Major European markets. German (DAX) down 0.27%, France CAC 40 up 0.54%, London FTSE 100 up 1.13%.
Market And Sector Dynamics
Markets were solidly positive at the open. The Dow soared 295 points, Nasdaq gained 93 points, and S&P rose 30 points. Thanks to indications from the G7 counties, the IMF, and global finance ministers, pledging support and assuring markets that they will take all necessary steps to protect the world economies from any fallout form coronavirus.
Overnight, China's manufacturing PMI came in weak, as expected, but despite that Asian markets closed higher.
Markets gained upward momentum during today's volatile session, as investors tried to gauge, the effects of the coronavirus, in terms of demand distruction, and supply chain constraints. None-the-less,investors piled in for the ride. Energy prices was also a positive catalyst for stocks, with WTI crude oil jumping off to a strong start, at $46.07/barrel, up 2.97%.
Stocks picked up additional momentum in the last half hour of trading, to end up with the largest one day point gain ever.
Today's rally was broad based, with all eleven S&P sectors solidly higher, up more than two, three, four, and five percent, led by Utilities, Technology, Consumer Staples, Real Estate, Financials, Healthcare, Basic Materials, Communication Services, Consumer Discretionary, Energy, and Industrials.
Factors Influencing Today's Market
New coronavirus infections and death cases here and abroad were placed in the background today.
Gilead is buying FortySeven Inc., in a cash deal worth $95.50/share.
February PMI Manufacturing Index came in at 50.70 vs 50.80 expected.
February Manufacturing ISM came in at 50.1 vs 50.8 estimated.
WTI Crude Oil closed the day at $46.75/barrel, up 4.45%.
US 10 Year Bond Yield closed up today at 1.163%, up 5.47%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended the Dow was jumped 1293.96 points, the largest one day point gain, ever. Nasdaq soared 384.80 points, and the S&P gained up 136.01 points. Total NYSE volume traded, a heavy 6.49 billion shares. Advancing shares outpaced Declining shares nearly 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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