Friday's Market Recap - Bank Stock Rally In Anticipation Of 2Qtr. Earnings Season.
What is The Premarket Telling Us?
7:00 AM.
Stocks futures are moderately lower at this hour. Dow futures down 175 points, Nasdaq down 40 points, and the S&P futures lost 19 points. Asian markets closed lower over night.
On The Bond Desk:
The US 10 Year Bond Yield at 0.58%, down 0.02%.
Currency Desk:
Euro dollar: 1.12
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $39.09/barrel, down 1.34%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets took a breather today. Japan (Nikkei 225) fell 1.06%, Shanghai lost 1.95%, Hong Kong (Hang Seng) down 1.84%.
Major European markets ended solidly higher. German (DAX) gained 1.15%, France CAC 40 gained 1.01%, London FTSE 100 gained 0.76%.
Market And Sector Dynamics
Market opened flat to modestly higher. The Dow gained 15 points, Nasdaq gained 7 points, and the S&P rose 2 points. After a modest tug o war between the bull and the bears early in the session, the bulls seems to have gained he upper hand. Stock gained steady momentum and climbed higher throughout the session.
Another record rise in new Covid-19 cases in the US did not dampen the markets enthusiasm today. With the major banks kicking off earnings season next week, investors are anticipating that banks earnings will be better than expected. As bank shares rallied, so did energy, industrials, and other stocks, and so a session that looked weaker, at the open, was transformed into a session that would inevitably close higher.
The rally was broad based and positive, with nine of the eleven S&P sectors closing with gains, led by Financials, Energy, Communication Services, Utilities, Consumer Staples, Basic Materials, Industrials, Consumer Discretionary, and Real Estate.
Factors Influencing Today's Market
Investors anticipate that bank 2nd Qtr earnings will be better than expected when the seasons begins next week.
US 10 Year Bond Yield closed at 0.643%, up 4.81%.
WTI crude oil close today at $40.55/barrel, up 2.35%.
This week's Baker Hughes US Oil Rig count fell 4 to 181 total.
Asian markets closed with losses, while European markets were solidly higher.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended the day in strong rally mode. The Dow soared 369.21 points, Nasdaq gained 69.69 points, and the S&P gained 32.99 points. Total NYSE volume traded, a moderate 4.55 billion shares. Advancing shares outpaced Declining shares by 3.26:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments