Tuesday's Market Recap - A Positive Session In A Vicious Bear Market.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are moderately positive at this hour. Dow futures are up 257 points, Nasdaq futures up 136 points, and S&P futures up 34 points. Market remains extremely volatile, as investors worry about the spread of the coronavirus, and it's devastating effect on the US and global economies.
On The Bond Desk:
The US 10 Year Bond Yield at 0.73%, down 0.22%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $29.31/barrel, up 2.13%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed higher. Japan (Nikkei 225) up 1.37%, Shanghai down 0.34%, Hong Kong (Hang Seng) up 0.87%.
Major European markets. German (DAX) gained 2.25%, France CAC 40 up 2.84%, London FTSE 100 up 2.79%.
Market And Sector Dynamics
Stock opened higher with the Dow up 400 points, Nasdaq up 156 points, and the S&P up 58 points. US 10 Year Bond sits at 0.797%. Crude continues to slide, with WTI at $28.07/barrel, up a fraction.
The Dow is currently sits at 30% below the recent highs. Utilities and Real Estate are leading early.
Shortly after the open the Dow was up more than 500 points, however, fifteen minutes later, the Dow was down 100 points.
Stocks recovered sharply a short while later, with the Dow at the high of the day up nearly 1200 points. Stocks remained significantly elevated for the rest of the session on reports the Congress and the White House are working fiscal support for industries severely hurt by the inevitable shutdown caused be the coronavirus.
Today's rally was strong and broad based, led by Utilities, Consumer Staples, Real Estate, Technology, Basic Materials, Healthcare, Financials, Industrials, Consumer Discretionary, and Communication Services.
Factors Influencing Today's Market
Drastic action by the Federal Reserve and promise of a $1.3 Trillion fiscal bailout plan a positive catalyst for markets.
Coronavirus remains a worry for markets.
US 10 Year Bond Yield closed higher at 1.069%, up 44.46%.
WTI Crude oil closed at $26.95/barrel, down 6.10%.
The January JOLTS new job opening numbers came in at 6.963 million vs 6.552 in December.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets were higher. The Dow gained 1048.86 points, Nasdaq gained 430.19 points, and S&P added 143.06 points. Total NYSE volume traded, a heavy 7.69 billion shares. Advancing shares outpaced Declining shares by nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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