Monday's Market Recap - California Again Closes Down After Covid-19 Spike.
What is The Premarket Telling Us?
8:25: AM.
Stock futures are moderately higher. Dow futures up 187 points, Nasdaq futures up 95 points, and S&P futures up 22 points. Asian markets closed higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.66%, up 0.03%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.26
Crude Oil:
WTI crude oil futures $40.05/barrel, down 1.23%
On the Earnings Calendar:
Big banks report 2 Qtr. Earnings results starting tomorrow.
In M&A News:
Chipmaker, Analog Devices is buying, rival Maxim Integrated in a deal worth $21.00 Billion.
What About The Asian And European Markets?
Major Asian markets closed with gains overnight. Japan (Nikkei 225) up 2.22%, Shanghai up 1.77%, Hong Kong (Hang Seng) up 0.17%.
Major European markets also closed higher. German (DAX) gained 1.32%, France CAC 40 up 1.73%, London FTSE 100 up 1.33%.
Market And Sector Dynamics
Markets opened sharply higher, with the Dow soaring 249 points, Nasdaq up 113 points, and the
S&P rose 25 points. Consumer Discretionary, and Basic Materials are the leading sectors early in the session. The FAANGs and other technology stocks like Tesla are surging higher. WTI crude oil started off the day at $40.34/barrel, 0.54%, with US 10 Year Bond holding at 0.656%.
Investors were treated to a surprise merger this morning, with chipmaker, Analog Devices buying rival Maxim Integrated, in a all stock deal worth $21 Billion.
Big banks will begin reporting 2nd Qtr. financial results tomorrow. Investors are not expecting them to be good, but do expect this report to be the worst quarter, due to the pandemic, and are anticipating the third and fourth quarters to be better.
At the high of the morning the Dow reached a high of 550 points, and the Nasdaq was up more than 200 points, with the S&P finally erasing all the losses due to the pandemic.
Today's selloff was fairly broad based. Six of the eleven S&P sectors closed the session with moderate losses, led by Technology, Communication Services, Consumer Discretionary, Real Estate, Energy, Consumer Staples, and Basic Materials.
Factors Influencing Today's Market
Market gave up nearly all of the morning gains late in the afternoon as California's Governor orders parts of the California's economy to close again, to curb stubborn spike in Covid-19 cases.
Banks report 2 Qtr Earnings starting tomorrow morning.
Chipmaker, Analog Devices is buying Maxim Integrated in a all cash deal worth $21 Billion.
US 10 Year Bond Yield closed at 0.618%, down 3.38%.
WTI crude oil closed today at $39.63/barrel, down 1.25%.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's wild session, the Dow went on a near 600 point round trip, to close up 10.56 points, similarly the Nasdaq which was more than 200 points intra-day, closed down 226.60 points, and the S&P lost 29.82 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.
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