Wednesday's Market Recap - Dow Gains More Than 500 Points Base On Improving Economic Data.
What is The Premarket Telling Us?
9:00 AM.
It's half an hour before the opening bell and US stock futures are trending friskily higher. Dow futures up 252 points, Nasdaq futures up 15 points, and S&P futures up 19 points. Asian markets were positive in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 0.71%, up 0.03%.
Currency Desk:
Euro dollar: 1.11
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $36.71/barrel, down 0.27%.
On the Earnings Calendar:
Campbell's Soup reported solid quarterly earning, driven by strong pandemic lock down sales.The company also increased guidance for the current quarter.
In M&A News:
Signs that the LVH Tiffany purchase may be unraveling.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei) up 1.29 %, Shanghai up 0.07%, Hong Kong (Hang Seng) up 1.37%
Major European markets recorded another strong trading day. German (DAX) up 3.88%, France CAC 40 up 3.36%, London FTSE 100 up 2.61%.
Market And Sector Dynamics
Markets opened strong to the upside this morning. The Dow jumped 230 points, Nasdaq gained 39 points, and the S&P up 23 points. A better than expected ADP private payroll report is a catalyst for the markets, early in the going.
The market took off from the open and rose steadily throughout the entire session, to close at the high of the day.
The rally was broad based, with ten of the eleven S&P sectors ending the day with solid gains, led by Industrials, Financials, Energy, Real Estate, Basic Materials, Consumer Discretionary, Utilities, Communication Services, and Consumer Staples. Healthcare finished modestly lower.
Factors Influencing Today's Market
Increasing confidence about reopening of economies here in the US & globally.
Uptick in new cases due to reopening appears to be less than feared.
Global stimulus/liquidity by governments into the world economy becomes a put under the market.
ADP private payroll came in a better than expected.
WTI crude oil closed at $36.95/barrel, up 0.38%.
This week's EIA Petroleum Status report shows US crude oil inventory fell 2.1 million barrels.
Both the PMI Services Index, and the ISM Non Manufacturing Services Index came in better than expected.
Market Close Volume Traded And Advance Decline Ratio
At the closing bell, the Dow gained a whopping 527.24 points, Nasdaq surged 74.54 points, and the S&P added 42.05 points. Total NYSE volume traded, a moderate 5.12 billion shares. Advancing shares outpaced Declining shares better than 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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