Thursday's Market Recap - Stocks Higher Despite Another Big Jump In Unemployment Claims.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are moderately positive this morning, suggesting we could have a positive open. Dow futures up 273 points, Nasdaq futures up 121 points, and S&P futures up 38 points. All eyes will be on the this week's Initial Jobless Claims report, due out at 8:30 AM. Overnight, China's April export data was better than expected.
On The Bond Desk:
The US 10 Year Bond Yield at 0.71%, up 0.05%.
Currency Desk:
Euro dollar: 1.07
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at at $26.02/barrel, up 8.46%.
On the Earnings Calendar:
PayPal beat both earnings, and revenue estimates, as did Square. Both being affected by Covid-19 pandemic.
Pelethon did beat analyst earnings and revenue estimates, and is actually benefiting from the pandemic lockdown.
In M&A News:
Retailer, Neiman Marcus filed for Chapter 11 Bankruptcy protection today.
What About The Asian And European Markets?
Major Asian markets mixed to mostly lower. Japan (Nikkei 225) up 0.28%, Shanghai down 0.23%, Hong Kong (Hang Seng) down 0.65%.
Major European markets enjoyed better than one percent gains. German (DAX) up 1.44%, France CAC 40 up 1.54%, London FTSE 100 up 1.40%.
Market And Sector Dynamics
Stocks got off to a frisky start this morning. The Dow gained 264 points, Nasdaq rose 120 points, and the S&P gained 36 points. WTI crude oil took a breather yesterday, is pointing higher early, at $26.19/barrel, up 9.25%.
Solid quarterly earning from Pelethon, and a better than expected China April export number is being cheered by investors this morning. Markets appears to be taking another big read on weekly initial jobless claims this morning, in stride. Unemployment claims shot up another 3.169 million claims.
PayPal and Square reported mixed quarterly earnings, but shares of the companies are trading higher, as investors are looking beyond these earnings, as States gradually have started opening up for business.
Markets remained these elevated levels for the entire trading session before trimming some of the gains shortly before session close.
Today's rally was definitely a risk on session. Eight of the eleven S&P sectors closed with gains, led by Energy, Financials, Basic Materials, Communication Services, Technology, Consumer Discretionary, Industrials, Real Estate, and Utilities. Consumer Staples, and Healthcare were modestly lower.
Factors Influencing Today's Market
This week's Initial Jobless Claims rose 3.169 million claims.
China's April export came in better than expected, suggesting its economy is coming back to normalcy.
Asian markets traded lower, while European market recorded solid gains.
Neiman Marcus filed for Chapter 11 Bankruptcy protection.
Pelethon report a strong quarter, helped by more people sheltering at home during this pandemic.
PayPal and Square reported mixed quarters.
WTI crude oil prices closed at $23.55/barrel, down 1.83%.
The US 10 Year Bond Yield closed at 0.639%, down 9.88%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, investors delivered another risk on day was on the books. The Dow gained 211.25 points, Nasdaq gained 125.27 points, and the S&P added 32.77 points. Total NYSE volume traded, a moderate 5.16 billion shares. Advancing shares outpaced Declining shares nearly 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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