Thursday's Market Recap - Stocks Closed Moderately Up, After An Agressively Strong Open.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are solidly higher early in the premarket, with Dow futures up 248 points, Nasdaq futures up 46 points, and S&P futures up 22 points. US markets will be closed tomorrow in observance of the July 4th. US Independence Day celebrations.
On The Bond Desk:
The US 10 Year Bond Yield at 0.68%, up 0.03% or three basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $40.00 up 0.83%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded smartly higher. Japan (Nikkei 225) up 0.11%, Shanghai up 2.13%, Hong Kong (Hang Seng) up 2.85%
Major European markets were up sharply. German (DAX) up 2.84%, France CAC 40 up 2.49%, London FTSE 100 up 1.24%.
Market And Sector Dynamics
Markets jumped off to a great start at the open. The Dow surged 356 points, Nasdaq soared 114 points, and the S&P gained 36 points. WTI crude also moved higher, at $40.35/barrel, up 1.35%,and the US 10 Year Bond sits at 0.697%. Half an hour after the open stocks reached the high of the day, with the Dow up 429 points. By 11:00 AM stocks had given up most of the morning gains, with the Dow up a mere 120 points. After a moderate rebound, stocks traded in a narrow range at that level for the rest of the afternoon, before a precipitous falloff into the close.
Markets had to ponder a mix good and bad new today. On the positive side there was the better than expected employment report showing 4.80 million new entrants to the work force. Tesla handily beat production targets, selling 90,600 vehicles in the quarter, 20,000 more than expected.
On the negative side of the things; despite the strong employment number,1.427 million Americans filed for new unemployment benefits this week. At this stage of the reopening, we have only recovered a third of the more than 40 million jobs lost due to the pandemic shutdown of the economy. As new Covid-19 infections and hospitalizations flare up in some states in the western, and the southern parts of the country, many of these states are re-closing bars, restaurants, beaches in an effort to control the spread. This is a big concern for investors.
Market tone was broadly positive, with nine of the eleven S&P sectors closing the day with gains, led by Basic Materials, Energy, Industrials, Healthcare, Technology, Consumer Staples, Consumer Discretionary, and Utilities. Real Estate and Communication Services were modestly lower.
Factors Influencing Today's Market
June's Unemployment Status Report showed 4.80 million new job were created, with the unemployment rate fell to 11.1%.
This week's Initial Claims Report shows 1.427 filed new claims filed for unemployment benefits.
Tesla reported it sold of 90,650, 20,000 more than expected for the second quarter.
US 10 Year Bond Yield closed at 0.669%, down 0.96%.
Asian and European markets were smartly higher in their sessions.
WTI crude oil price closed at $40.65/barrel, up 2.08%.
This week's Baker Hughes US Oil Rig count fell 3 to 185 total.
Market Close Volume Traded And Advance Decline Ratio
Despite powerful start to the trading day, markets finished higher, but well off the early gains of the morning. The Dow gained 92.39 points, Nasdaq gained 53 points, and the S&P gained 14.15 points. Total NYSE volume traded, a modest 4.22 billion shares. Advancing shares outpaced Declining shares by 1.68:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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