Monday's Market Recap - Stocks Higher After Deep Losses In Morning Session.
What is The Premarket Telling Us?
7:00 AM.
Major Asian markets were decisively lower overnight, and ahead of our market open. Dow futures are under intense pressure at this hour. Dow futures down 558 points, Nasdaq futures down 144 points, and S&P futures down 58 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.70%, up .05%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $35.43/barrel, down 2.29%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended with losses. Japan (Nikkei 225) down 3.47%, Shanghai down 1.02%, Hong Kong (Hang Seng) down 2.16%.
Major European markets also ended with modest losses. German (DAX) down 0.32%, France CAC 40 down 0.49%, London FTSE 100 lost 0.66%.
Market And Sector Dynamics
Stock were under intense pressure at the open. The Dow lost 664 points, Nasdaq lost 155 points, and the S&P fell 63 points. All eleven S&P sectors were higher early in the session. WTI crude oil was decidedly lower, sitting at $34.85/barrel, down 4.16%, and the US 10 Year Bond was holding at 0.677%.
Reports than twenty one States are experiencing a worrying uptick in Covid-19 cases and deaths, since reopening, and in China, Beijing has closed down a section of the city due to new Covid-19 outbreak. This has become the new concern for markets.
Stocks continued to fall after the open, with the Dow down 750 points, a short while later. This was short lived however, as stock rebounded gradually from there during the rest of the session, and turned positive around 2:00 PM, after the Fed announced that the were going to by Corporate Bonds.Stocks gaped higher, with the Dow up more than 286 points, and intra-day roundtrip of more than 1000 points.
In today's turnaround rally, all eleven S&P sectors closed the day with gains, led by Financials, Consumer Staples, Real Estate, Communication Services, Basic Materials, Industrials, Technology, Consumer Discretionary, Utilities, Healthcare, and Energy.
Factors Influencing Today's Market
Investor worry about spike in Covid-19 cases, including hospitalizations in 21 US States. Beijing, also closed down a section of that city due to an outbreak of coronavirus.
US 10 Year Bond Yield was a bit lower at 0.708%, down 0.23%.
WTI crude oil closed at $37.03/barrel, up 4.10%.
Market Close Volume Traded And Advance Decline Ratio
In a miracleous turnaround stocks ended in positive territory. The Dow gained 157.62 points, Nasdaq gained 137.21 points, and the S&P gained 25.28 points. Total NYSE volume traded, a moderate 5.79 billion shares. Advancing shares outpaced Declining shares by 1.91:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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