Thursday's Market Recap - Dow Gains Nearly 500 Points Thanks To Energy.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are trending higher at this hour, after yesterday's nearly 1000 point selloff. Dow futures rose 353 points, Nasdaq futures up 98 points, and S&P futures up 39.75 points. Overnight, Asian market were mostly mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 0.64%, down 0.06%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at $22.41/barrel, up 10.34%.
On the Earnings Calendar:
Tesla surprised markets by reporting a better than expected sales deliveries. Shares are up.
In M&A News:
The Sprint and T-Mobile deal closed on Monday.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) down 1.37%, Shanghai up 1.64%, Hong Kong (Hang Seng) up 0.84%.
Major European markets closed modestly higher. German (DAX) up 0.27%, France CAC 40 up 0.33%, London FTSE 100 up %
Market And Sector Dynamics
Markets opened mostly flat this morning. The Dow rose 15 points, Nasdaq rose 6 points, and the S&P 6 points.
Markets went negative shortly after the open, with the Dow down 208 points, then reversed in a V shaped manner back into positive territory with the Dow up 500 points. Except for another brief visit into negative territory around 2:30 PM., stock rebounded to close just short of the high of the day.
Despite the grim outlook, and the bundled federal response to this pandemic, markets rallied. Hospital say they don't have the protective garments (PPEs) they need, and the government, does not seem to have any idea of what is happening with the supply chain. Individual States are competing against each other for limited supplies, and in some case are being out bid by the Federal government for the same supplies. It's very confusing, but markets chose to ignore that today.
The rally was broad based and moderate with all eleven S&P sectors closing with gains, led by Energy, Utilities, Consumer Staples, Healthcare, Financials, Communication Services, Basic Material, Industrials, and Real Estate.
Factors Influencing Today's Market
A solid rebound in crude oil prices help to lift stocks in the energy sector today.
Better than expected sales deliveries by Tesla was a positive catalyst for stocks today.
Asian and European stocks were mostly higher in their sessions.
US 10 Year Bond Yield closed the day at 0.611%, up 1.53%.
WTI crude oil closed higher at $25.32/barrel, up 24.67%.
March Initial Jobless Claims rose a massive 6,648K twice last months number due to coronavirus layoffs.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the Dow gained 469.93 points, Nasdaq gained 126.73 points, and the S&P gained 56.40 points. Total NYSE volume traded, a heavy 6.53 billion shares. Advancing shares outpaced Declining shares by 1.47:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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