Tuesday's Market Recap - Dow Ends Positive As It Sniffs Out The Potential Of Another Round Of Fi
What is The Premarket Telling Us?
7:00 AM.
Up, up, and away! describes the status of US stock futures this morning. Dow futures are up 232 points, Nasdaq futures up 66 points, and the S&P futures up 25 points. Last night a member of Administration while being interviewed on Fox, stated that the US China trade deal was dead, sending futures sharply lower. Later, he had to do a 'Mia culpa', which led the futures to recover.
On The Bond Desk:
The US 10 Year Bond Yield at0.70%, unchanged.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.23
Crude Oil:
WTI crude oil futures at $41.45/barrel, up 1.77%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended with modest gains overnight. Japan (Nikkei 225) gained up 0.50%, Shanghai up 0.18%, Hong Kong (Hang Seng) up 1.62%.
Major European markets closed with solid gains. German (DAX) gained 2.13%, France CAC 40 up 1.39%, London FTSE 100 up 1.21%.
Market And Sector Dynamics
Markets opened sharply elevated, with the Dow up 218 points, Nasdaq gained 74 points, and the S&P rose 26 points. WTI crude oil is off to a modest start, at $41.04/barrel, up 0.79%, and the US 10 Year Bond Yield at 0.720%.
As a leading indicator, the market is trying to answer this question. What will the US, global economy look like, post Covid-19. That picture is blurred right now. We are in an environment with trillions of dollars of fiscal stimulus, a central bank willing to use all the necessary tools at its disposal to protect the economy, which most see as positives for the markets. On the negative side, the pandemic shock to the economy was real, over 40 million people lost their jobs, many businesses have already failed, and while we gradually reopen the economy, the pandemic still rages on in many states.
Today investors chose to focus on the positive, glass half full side of the dilemma. The Dow hit an intraday high, up 290 points, shortly after the open, and held on at or near those elevated levels for most of the session, before pulling back in the final hour of trading.
The rally was broad based and positive. Seven of the eleven S&P sectors closed with moderate gains, led by Consumer Discretionary,Technology, Communication Services, Healthcare, Financial, Basic Materials, and Energy.
Factors Influencing Today's Market
Markets may be warming to a fourth round of Covid-19 fiscal stimulus.
New home sales, a measure of new home signed contracts, during the month rose 16.6%, as buyers look for more space and amenities during the pandemic lockdown.
Asian and European markets closed most higher in their sessions.
US 10 Year Bond Yield closed at 0.715%, up 0.69%.
WTI crude oil closed the day at $40.37/barrel, down a modest 0.22%.
Today markets chose to ignore the spike in Covid-19 cases in the US south, and west.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today all the major indexes were higher. The Dow gained 131.14 points, Nasdaq gained 74.89 points, and the S&P gained 13.43 points. Total NYSE volume traded, a modest 4.75 billion shares. Advancing shares outpaced Declining shares by 1.36:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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