Monday's Market Recap - Stocks Soar On Promising Covid-19 Vaccine Results From Moderna.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are smartly higher this morning, on news than a vaccine being developed by Moderna, has shown some promising results, against Covid-19. Obviously, investors are loving this news. Asian markets were modestly higher across the board, in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 0.64%, up 0.02%.
Currency Desk:
Euro dollar: 1.08
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $32.06/barrel, up 8.57%.
On the Earnings Calendar:
BABA, Home Depot, report quarterly earnings this week.
In M&A News:
As was expected, JCPenny filed for Chapter 11 Bankruptcy Protection over the weekend.
What About The Asian And European Markets?
Major Asian markets were modestly higher overnight. Japan (Nikkei 225) up 0.48%, Shanghai up 0.24%, Hong Kong (Hang Seng) up 0.58%.
Major European markets were sharply up. German (DAX) up 5.67%, France CAC 40 up 5.16%, London FTSE 100 up 4.29%.
Market And Sector Dynamics
The power of a potential Covid-19 vaccine was demonstrated in the markets this morning, stocks rocketed higher at the open. The Dow gained 680 points, Nasdaq gained 155 points, and the S&P gained 70 points. WTI crude oil is also adding to this market optimism, currently up $32.65/barrel, up 11%. The US 10 Year Bond Yield is holding steady at 0.674%.
Stocks continued to climb after the open, with the Dow up more than 700 points half an hour after trading began. Shares of biotech company, Moderna skyrocketed as the Covid-19 vaccine they are working on has shown great promise, in a recent small clinical trial. Other companies working on a potential vaccine also surged higher during the session. Also helping markets this morning is comments from the Fed Chair, Jerome Powell, on 60 Minutes, yesterday evening, assuring markets the the Federal Reserve has unlimited tools, and will do everything to support the economy.
All eleven S&P sections were solidly higher, from the start of trading.Investor were in 'risk on' mode.
Markets traded at these elevated levels throughout the day, and gaped higher later in the afternoon, with the Dow hitting an intraday high of 1023 points, just before the close.
All eleven S&P sectors ended today's session with solid gains, led by Energy, Industrials, Financials, Real Estate, Materials, Utilities, Consumer Discretionary, Technology, Communication Services, and Consumer Staples.
Factors Influencing Today's Market
Moderna's vaccine shows very promising early results in small NIAID clinical trial.
Fed Chair Powell is mildly optimistic about a US rebound, but states it will take some time.
Retailer JCPenny files for Chapter 11 Bankruptcy Protection.
Crude Oil continues to surge, closing at $32.24/barrel, up 5.77%.
US 10 Year Bond ticked up, and closed higher at 7.26%, up 12.90%.
Market Close Volume Traded And Advance Decline Ratio
Markets were in a jolly risk on mood today. The Dow soared 911.95 points, Nasdaq jumped 220.27 points, and the S&P gained 90.21 points. Total NYSE volume traded, a heavy 6.49 billion shares. Advancing shares outpaced Declining shares by 8:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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