Friday's Market Recap - A 2,000 Point Rally Amidst A Sea Of Distruction.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are pointing 'limit' higher at this hour. Dow futures up 1000 points, Nasdaq futures up 385 points, and the S&P futures up 119 points. Asian markets were lower in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 0.85%, up 0.08%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $33.23/barrel, up 5.49%.
On the Earnings Calendar:
None
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets were lower overnight were down big overnight. Japan (Nikkei 225) down 6.08%, Shanghai down 1.23%, Hong Kong (Hang Seng) down 1.14%.
Major European markets closed higher. German (DAX) rose 0.77%, France CAC 40 up 1.38%, London FTSE 100 up 2.46%.
Market And Sector Dynamics
Markets opened astronomically higher this morning, the Dow soared 1300 points, Nasdaq jumped 440 points, and the S&P surged 150 points.
Stocks remained mostly elevated early in the morning session, however shortly before noon, the Dow was up a mere 50 points. Markets regained their upward momentum during the afternoon session after more action by the Federal Reserve, and frantic negotiation of a People First fiscal package, between Speaker Nancy Pelosi, and the Treasury Secretary, Steven Mnuchin.
Today's rally was broad based, with all eleven S&P sectors recording huge gains, led by Financials up more than 13%, Financials up almost 12%, Communication Services up more than 9%, Energy, Real Estate, Consumer Staples, more than 8%, Industrials up almost 8%, Healthcare, Basid Materails and Consumer Discretionary, up over 6%, and Utilities over 5%.
Factors Influencing Today's Market
Fear of the spreading coronavirus still dominated the markets.
Federal Reserve and Treasury continued support of the fixed income and credit markets.
The House is expected to pass Employee First House Bill to provide sick leave pay and unemployment payments to workers dislocated by the coronavirus, in business such as bars, restaurants, small business.
This week's Baker Hughes US Oil Rig counts rose 1 to 693 total.
WTI Crude Oil closed modestly higher at $31.73/barrel, up 0.73%.
US 10 Year Bond Yield closed at 0.983%, up 21.46%.
Market Close Volume Traded And Advance Decline Ratio
When markets closed, all the major indexed were significantly higher. The Dow gained 1,985 points, Nasdaq gained 673.08 points, and the S&P gained 230.38 points. Total NYSE volume traded, a heavy 8.09 billion shares. Advancing shares outpaced Declining shares by 7:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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