Monday's Market Recap - A Strong Post July 4th. Rally Driven By Asian Markets.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are looking quite ebullient at this hour, with Dow futures up 363 points, Nasdaq up 119 points, and S&P up 36 points. Investors are taking their cue from Asia, as markets in China soared overnight, in response to the Chinese authorities jawboning their market, encouraging investors to invest.
On The Bond Desk:
The US 10 Year Bond Yield at 0.67%, down 0.01% or one basis points.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.24
Crude Oil:
WTI crude oil futures at $40.67/barrel.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were robustly higher. Japan (Nikkei 225) up 1.83%, Shanghai soared 5.71%, Hong Kong (Hang Seng) up 3.81%.
Major European markets were also higher. German (DAX) gained 1.64%, France CAC 40 rose 1.49%, London FTSE 100 gained 2.08%.
Market And Sector Dynamics
Markets are off to a spirited start, on the first day of trading following the July 4th. Independence holiday. The Dow surged 340 points, Nasdaq soared 154 points, and the S&P gained 42 points.
All eleven S&P sectors were in positive territory early in the session.
Asian markets began the rally overnight, after Chinese authorities seem to have given full support to their stock markets, by encouraging their citizens to to invest. Here in the US, Warren Buffet
and Berkshire Hathaway has reemerged with a $10 Billion deal to acquire Dominion Energy's natural gas transmission and storage business, which the markets regarded as positive.
The spike in Covid-19 cases across the US and the reintroduction of restrictions, and mandatory mask wearing in some cities or regions, remains a worry for investors, but today they chose to focus on positive side of the ledger.
The Dow surged to a high of 475 points not long after the open, and pulled back slightly, and remained that new level for most of the session, before surging higher in the final half hour of trading.
Market tone was very positive, with ten of the eleven S&P sectors ending with gains, led by Consumer Discretionary, Communication Services, Financials, Technology, Industrials, Basic Materials, Consumer Staples, and Real Estate. Utilities ended lower.
Factors Influencing Today's Market
Asian and European markets set the tone for today's strong rally.
Warren Buffet/Berkshire Hathaway to acquire Dominion Energy's natural gas transmission and storage business.
Investors ignored the surge in new Covid-19 in parts of the US, at least for today.
US 10 Year Bond Yield closed at 0.681%, up 0.72%.
WTI crude oil closed today at $40.73/barrel, up 0.84%.
Market Close Volume Traded And Advance Decline Ratio
The bulls have come back from the July 4th holiday determined and revved up to push markets higher. At the close of trading, the Dow soared 459.67 points, Nasdaq jumped 226.02 points, and the S&P gained 49.71 points. Total NYSE volume traded, a moderate 4.80 billion shares. Advancing shares outpaced Declining shares by 2.68:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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