Tuesday's Market Recap - Stock Rally On Promise Of Economic Stimulus By Administration.
What is The Premarket Telling Us?
7:00 AM.
I can't remember, ever riding rollercoaster. But if what's happening in stock market over the last two weeks is a rollercoaster, I want no part of it. After yesterday's massive 2000 plus point drop, stocks seem poised for a big rally at the open. Dow futures up 1026 points, Nasdaq futures up 365 points, and the S&P futures up 122 points. After yesterday's selloff, the President suggest they are discussing actions to support the economy and market, to include support for energy, airline, and cruise lines, who are taking the brunt of the recent selloff.
On The Bond Desk:
The US 10 Year Bond Yield at 0.75%, up 0.25%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $33.26/barrel, 3.20%.
On the Earnings Calendar:
None.
In M&A News:
Pepsi is buying Rockstar in deal worth
What About The Asian And European Markets?
Major Asian marketsmostly lower. Japan (Nikkei 225) down 2.27%, Shanghai up 1.82%, Hong Kong (Hang Seng) fell 0.63%.
Major European markets traded lower. German (DAX) down 1.41%, France CAC 40 down 1.51%, London FTSE 100 down 0.09%.
Market And Sector Dynamics
Stocks opened powerfully higher, with the Dow up 870 points, Nasdaq surged 280 points, and S&P rose 89 points. Crude oil prices are rebounding after yesterday's massive selloff. WTI crude is up more than 8%, at $33.75/barrel. The US 10 Year Bond Yield is holding this morning at 0.66%, adding positive sentiment to markets. Investors are responding to comments from the Administration that they are considering steps to support small energy companies, and leisure and hospitality companies like cruise lines, and airlines, whose business have been decimated by the spread on coronavirus.
Shares of Apple and Goldman Sachs are are leading markets higher, in early trading.
Stocks gave back all of the morning gains by noon, going negative for a brief moment, before turning higher once again. Markets moved higher during the afternoon session, closing at the high of the day.
All eleven S&P sectors were higher today, led by Technology, Financials, Consumer Discretionary, Real Estate, Energy, Communication Services, Basic Materials, and Healthcare.
Factors Influencing Today's Market
Coronavirus fears continues to dominate the markets, as the outbreak spreads.
Japan, Hong Kong and Australia announce Fiscal and Monetary stimulus to fight the economic fallout of the coronavirus.
Occidential cuts its dividends to 0.11 from 0.79.
US 10 Year Bond Yield closed the day at 0.800%, up 43.11%.
WTI Crude Oil closed at $34.36/barrel, up 10.38%.
Market Close Volume Traded And Advance Decline Ratio
At the closed of trading, the Dow soared 1164.17 points, Nasdaq gained gained 393.57, and the S&P gained 135.67 points. Total NYSE volume traded, a heavy 7.54 billion shares. Advancing shares outpaced Declining shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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