Monday's Market Recap - Stocks Cheering The Gradual Opening Of Some State Economies.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are convincingly higher at this hour, indicating a srtong positive open. Dow futures up 223 points, Nasdaq futures up 93 points, and S&P futures up 25 points. Asian stocks were solidly up overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.60%, down .01%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at at $14.09/barrel, down 16.82%.
On the Earnings Calendar:
None
In M&A News:
Nvidia's $7 Billion deal to purchase Mellanax has now closed.
What About The Asian And European Markets?
Major Asian markets soared overnight. Japan (Nikkei 225) up 2.71%, Shanghai up 0.25%, Hong Kong (Hang Seng) up 1.88%
Major European markets were also solidly higher. German (DAX) up 3.13%, France CAC 40 up 2.55%, London FTSE 100 up 1.64%.
Market And Sector Dynamics
As the futures predicted, markets started off in true risk on fashion. The Dow soared 128 points, Nasdaq rose 80 points, and the S&P up 21 points. Even with a steep decline in crude oil price, currently at $12.29/barrel, down 27%, the market's bias seems to be higher. The US 10 Year Bond Yield is also holding at 0.626%.
Investors are encouraged by a gradual reopening of some States, as Covid-19 spread seems to be plateaued. Georgia gave the okay for some small businesses, such as nail salons, barber shops, hair salons, and massage parlors to open last Friday. A very controversial decision, but many are cautiously awaiting the outcome of this decision. Other states are also planning their own return to business.
Stocks marched steadily higher during today's session, with the Dow ending at the high of the day.
Today's rally was broad based and positive, with all eleven S&P sectors closed with moderate gains, led by Financials, Real Estate, Basic Materials, Industrials, Energy, Healthcare, Consumer Discretionary, Utilities, Technology, and Communications Services.
Factors Influencing Today's Market
Stocks are higher on optimism that some States are gradually reopening segments of their economy, as Covid-19 spreads and deaths plateau.
Major Asian and European stocks closed convincingly higher.
Nvidia closed its $7 billion deal to buy Mellanax.
US 10 Year Bond Yield closed at 0.664%, up 9061%.
WTI Crude Oil price closed at $12.78/barrel, down down a whopping 24.56%.
General Motors has suspended its dividends, and its stock repurchase program.
Market Close Volume Traded And Advance Decline Ratio
We ended up with a positive risk on session, today. At the close the Dow gained 358.51 points, Nasdaq rose 95.64 points, and the S&P gained 41.74 points. Total NYSE volume traded, a moderate 5.25 billion shares. Advancing shares outpaced Declining shares by 3.62:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments