Wednesday's Market Recap - Vaccine Optimism The Major Catalyst For Stocks Today.
What is The Premarket Telling Us?
7:00 AM.
It's tax deadline day! US stock futures are trending significantly higher at this hour, indicating a strong positive open. Dow futures are up 433 points, Nasdaq futures up 87 points, and S&P futures up 40 points. Asian market ended mixed in their session. Vaccine optimism is driving catalyst for markets this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 0.62%, down 0.02%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $40.91/barrel, up 1.54%.
On the Earnings Calendar:
Goldman Sachs reported blowout second quarter earnings performance before the bell.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed in their session. Japan (Nikkei 225) gained 1.59%, Shanghai fell 1.56%, Hong Kong (Hang Seng) added 0.01%.
Major European markets traded higher today. German (DAX) gained 1.84%, France CAC 40 up 2.03%, London FTSE 100 up 1.83%.
Market And Sector Dynamics
As was indicated by futures, markets go off to a flying start, with the Dow up 384 points, Nasdaq futures up 78 points, and the S&P up 36 points. Although the US reopening process continues to be murky due to the spread of Covid-19 in many states, it is vaccine optimism that took center stage today. Moderna, one of the many vaccine developers announced the will be starting phase 3 clinical trials shortly. Also released today, an encouraging peer review study of Moderna's vaccine, in the New England Journal of Medicine, which excited investors.
A strong, blowout earnings performance from Goldman Sachs, in the second quarter also contributed to the positive market sentiment in today's session, as investor pushed stock sharply higher early, with the Dow soaring more than 500 points, early.
Stocks gave up more than half of the morning gains an hour before midday, but remained mostly at that level for the rest of the session.
Today's rally was broad based, with ten of the eleven S&P sectors ending the session with gains, led by Industrials, Energy, Financials, Basic Materials, Healthcare, Technology, Real Estate, Consumer Discretionary, Communication Services, and Consumer Staples. Utilities were the only laggard today.
Factors Influencing Today's Market
Covid-19 Vaccine optimism was the major catalyst for markets in today's session.
Blowout second quarter earnings performance from Goldman Sachs.
US 10 Year Bond closed at 0.663%, up 1.31%.
WTI crude oil closed at $41.20/barrel, up 2.26%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell 7.5 million barrels vs a build of 5.7 million barrels, last week.
Asian markets closed mixed overnight.
Market Close Volume Traded And Advance Decline Ratio
Another strong day in the markets. The Dow gained 227.85 points, Nasdaq gained 61.92 points, and the S&P rose 29.04 points. Total NYSE volume traded, a moderate 4.51 billion shares. Advancing shares outpaced Declining shares by 1.87:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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