Tuesday's Market Recap - Stocks Up More Than 500 Points On Better Than Expected CPI, And Fed'
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mildly higher, a good sign for the bulls after yesterday drastic selloff just before the close of trading. Dow futures are up 84 points, Nasdaq futures up 20 points, and the S&P futures up 9 points. Asian markets traded lower while we slept.
On The Bond Desk:
The US 10 Year Bond Yield 0.64%, up 0.01%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $39.75/barrel, down 0.87%.
On the Earnings Calendar:
JPMorgan, and CitiBank beat second quarter earnings results.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets finished down overnight. Japan (Nikkei 225) down 0.87%, Shanghai fell 0.83%, Hong Kong (Hang Seng) down 1.14%.
Major European markets were mostly lower. German (DAX) down 0.80%, France CAC 40 down 0.96%, London FTSE 100 was mildly up 0.06%.
Market And Sector Dynamics
Stocks began today's session mostly neutral, perhaps looking to continue yesterday's selloff. The Dow was up 8 points, Nasdaq down 4 points, and the S&P down 7 points. WTI crude is lower early, and the US 10 Year Bond has ticked slightly lower, at 0.605%.
Half an hour after a wobbly start, the markets turned higher, as utilities, and real estate rallied follower later by industrial, basic material, and energy stocks. By noon the Dow was up more than 300 points. Stock ticked higher in the early afternoon, and gaped even higher in the final hour of trading, and into the close. FAANG stocks remained subdued in today's session, but did rebound from their morning lows during the morning session.
Today's release of the June's Consumer Price Index (CPI) rose a better than expected 0.6% vs 0.5% consensus estimate. This report along with speeches from a few Fed governors who in speeches today, pledged strong support for keeping economic growth and employment growing.
One could describe today's session as broad based, with all eleven S&P sectors ending with solid gains, led by Energy, Basic Materials, Industrials, Healthcare, Consumer Staples, Technology, Real Estate Utilities, Communication Services, Financials, and Consumer Discretionary.
Factors Influencing Today's Market
Investors honed in on speeches by various Fed Governors today, pledging unlimited support for the US economic recovery.
June's Consumer Price Index (CPI) grew more than expected for the month.
US 10 Year Bond closed at 0.625%, up 1.07%.
WTI crude oil closed at $40.45/barrel, up 0.87%.
Asian and European markets close with losses in their sessions.
Market Close Volume Traded And Advance Decline Ratio
When the session wrapped up today, the Dow surged 556.79 points, Nasdaq jumped 97.73 points, and the S&P gained 42.30 points. Total NYSE volume traded, a moderate 4.92 billion shares. Declining shares outpaced Advancing shares by 1.74:1
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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