Wednesday's Market Recap - Stocks Soared On Strong Earnings From Netflix & Chipotle, And Mor
What is The Premarket Telling Us?
7:00 AM.
US stock futures are pointing to a higher opening this morning. Dow futures up 204 points, Nasdaq futures up 82 points, and S&P futures up 27 points. Investors are hoping that the markets are looking to snap back from the last two days of losses, due to the collapse in crude oil prices.
On The Bond Desk:
The US 10 Year Bond Yield 0.57%, down 0.06%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $11.72/barrel, up 1.30%.
On the Earnings Calendar:
Netflix beats first quarter earnings expectations, and also blew out estimates with an impressive 15.8 million net new subscribers for the quarter. The company's own guidance was 7 million net subscriber for the quarter.
Chipotlle also reported strong quarterly results, supported by strong online ordering, delivery and pick up services.
Snap, also reported better than expected earnings results.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) lost 0.74%, Shanghai added 0.60%, Hong Kong (Hang Seng) gained 0.42%.
Major European markets ended the day with nice gains. German (DAX) uo 1.61%, France CAC 40 up 1.25%, London FTSE 100 gained 2.30%.
Market And Sector Dynamics
Markets opened convincingly higher, with the Dow soaring 450 points, Nasdaq gained 173 points, and S&P rose 54 points. There appears to be a tentative stabilization in the crude oil market, with WTI crude at $14.06/barrel, up 21.51%, a welcome improvement after the record declines that accompanied the expiration of the May contract. The US 10 Year Bond remains fairly stable at 0.606%.
Markets traded below the flat line, and was very choppy during the early morning session, but turned around shortly before noon, and gradually improved to end solidly higher, as the session continued.
All eleven S&P sectors ended the day with nice gains, led by Technology, Energy, Utilities, Communication Services, Basic Materials, Consumer Discretionary, Real Estates, Healthcare, Industrials, Financials, Consumer Staples.
Factors Influencing Today's Market
Netflix reported solid first quarter performance, beating earnings expectation and net subscriber additions.
Chipotle also reported strong earning, boosted by strong online sales.
After yesterday's crazy oil market, WTI crude seems to be stabilizing. The commodity closed today at $13.78/barrel, up 37.66%.
This week's EIA Petroleum Status Report shows US crude oil inventory rose 15 million barrels vs 19.2 million last week.
US 10 Year Bond Yield closed the day at 0.618%, up 9.12%.
Market Close Volume Traded And Advance Decline Ratio
Following two days of heavy declines, today we got a relief rally. The Dow soared 456.94 points, Nasdaq jumped 232.15 points, and the S&P gained 62.75 points. Total NYSE volume traded, a moderate 5.13 billion shares. Advancing shares outpaced Declining shares by 2.37:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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