Tuesday's Market Recap - Dow Up 500 Plus Points As US Economy Cautiously Reopens.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are convincingly higher this morning, on the first trading day of the new week, and following yesterday's Memorial Day Holiday. Dow futures are up 493 points, Nasdaq up 158 points, and S&P up 55 points. Asian markets traded higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.66%. down 0.02%.
Currency Desk:
Euro dollar: 1.09
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $34.09/barrel, up 2.53%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed solidly higher. Japan (Nikkei 225) gained 2.55%, Shanghai up 1.01%, Hong Kong (Hang Seng) up 1.88%.
Major European markets ended solidly higher as well. German (DAX) up 1.00%, France CAC 40 up 1.46%, London FTSE 100 up 1.24%.
Market And Sector Dynamics
Stocks opened sharply higher, with the Dow climbing 580 points, Nasdaq surged 148 points, and the S&P gained points. WTI crude oil also was up right out of the gate, at $34.28/barrel, up 3.13%.
The US 10 Year Bond Yield seems to have stablilised around the 0.650 - 0.700 range, currently at 0.695%.
The markets remained highly elevated for the entire trading session, with the Dow up more than 700 points, intraday, as investors express confidence that reopening of the States, and the absence of a significant spike in Covid-19 cases since some States reopened two weeks ago, is a good sign.
Today's rally was broad based, and market tone was positive. Nine of the eleven S&P sectors closed the session with gains, led by Financials, Industrials, Real Estate, Energy, Basic Materials, Consumer Discretionary, Utilities, Consumer Staples, and Communication Services. Healthcare and Technology were marginally lower.
Factors Influencing Today's Market
Markets are sensing that the country is attempting to get back to some new normal.
No signs of a significant new breakout of Covid-19 cases 10 days after some States have opened.
Asian and European markets were solidly higher in their sessions.
US 10 Year Bond closed at 0.689, up 5.92%.
WTI crude oil closed at $34.13/barrel, up 0.62%.
New Home Sales for April came in a better than expected 623 K vs 495 K (estimated).
May Consumer Confidence came in weaker than expected at 86.6 vs 83.3 (consensus estimates)
Market Close Volume Traded And Advance Decline Ratio
The bulls went on a major run today, taking investors along for the ride. The Dow closed up 529.95 points, Nasdaq rose 15.63 points, and the S&P gained 36.32 points. Total NYSE volumetraded, a moderate 5.92 billion shares. Advancing shares outpaced Declining shares by 5.35:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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