Wednesday's Market Recap - Stocks Rocket Higher On Optimistic Results Of Remdisivir Clinical Tr
What is The Premarket Telling Us?
8:00 AM.
Stock futures are moderately higher ahead of the opening bell. Dow futures up 132 points, Nasdaq futures up 60 points, and the S&P futures up 14 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.61%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $14.22/barrel, up 15.24%.
On the Earnings Calendar:
Google first quarter earning was better than expected. Boeing reported a weak quarter, as expected. The company is taking steps to restart its production lines.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mixed. Japan (Nikkei 225) down 0.06%, Shanghai up 0.44%, Hong Kong (Hang Seng) up 0.28%.
Major European markets were sharply higher. German (DAX) up 2.89%, France CAC 40 up 2.22%, London FTSE 100 up 2.63%.
Market And Sector Dynamics
Markets opened with a bang on optimism that Gilead's Drug Remdesivir has proven effective, in a worldwide, large double blind, control study conducted by the NIAID, for the treatment of patients with Covid-19. The Dow jumped 445 points, Nasdaq surged 190 points, and the S&P soared 58 points. Crude oil is also helping market sentiment this morning, with WTI crude up 25.69%, at $15.54/barrel.
The US 10 Year Bond Yield remains steady, currently at 0.603%, suggesting the credit markets are functioning effectively. Shares of Boeing are higher, after the company quarterly earnings were wider than expected, and they are planning to layoff 16,000 employees in their commercial airplane division. However, the CEO appeared cautiously optimistic, stating that the thaw is beginning.
Markets sustained the elevated levels for the entire trading session. At the high of the day the Dow was up around 660 points.
Today's rally was decidedly 'risk on' with all eleven S&P sectors, solidly positive, led by Energy, Communication Services, Technology, Financials, Basic Materials, Consumer Discretionary, Industrials, Healthcare, and Real Estate.
Factors Influencing Today's Market
Remdesivir, the Gilead drug shows great promise in large clinical trail for treating Covid-19.
More States are allowing certain business in their economies to open, but still maintain distancing rules.
Today the FOMC left interest rate at existing levels, and pledge continued support for the economy during this pandemic.
First read on 1Qtr GDP down 4.8% vs 3.5% estimated.
Boeing earnings disappoint, as expected, but the company says "the thaw is beginning."
Google quarterly earnings was better than expected, considering the current environment.
US 10 Year Bond Yield closed today at 0.628%, up 2.01%.
WTI Crude Oil prices closed at $15.06/barrel, up 22.04%.
This week's EIA Petroleum Status report shows US oil inventory rose 9 million barrels vs 15 million barrels, last week.
Major Asian and European stocks were decidedly higher today.
Market Close Volume Traded And Advance Decline Ratio
Stock ended the day smartly higher. The Dow was up 532.31 points, Nasdaq surged 306.98 points, and the S&P rose 76.12 points. Total NYSE volume traded, a heavy 6.62 billion shares. Advancing shares outpaced Declining shares better than 7:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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