Tuesday's Market Recap - Big Tech Stocks Took A Breather, But Energy, Industrials & Material
What is The Premarket Telling Us?
7:00 AM.
US stock futures are trending higher at this hour. Dow futures up 173 points, Nasdaq futures up 93 points, and the S&P futures up 23 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.62%, down 0.01%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.25
Crude Oil:
WTI crude oil futures at $42.00/barrel, up 2.64%.
On the Earnings Calendar:
IBM beating analyst quarterly earning expectations, after the close of trading yesterday.
In M&A News:
Ebay agrees to sell it 'classified unit' to Norway's Adevinta in a deal worth $9.2 Billion.
What About The Asian And European Markets?
Major Asian markets traded higher. Japan (Nikkei 225) up 0.73%, Shanghai up 0.20%, Hong Kong (Hang Seng) up 2.31%.
Major European markets closed with gains. German (DAX) up 0.96%, France CAC 40 up 0.22%, London FTSE 100 up 0.13%.
Market And Sector Dynamics
The markets were off to a strong start this morning, buoyed by the announcement of massive 750 Billion Euros recovery package for the 27 members of the European Union. The Dow soared 180 points, Nasdaq gained 72 points, and the S&P up 20 points.
Positive vaccine news, a better than expected earnings report from IBM, and a sense that the second quarter will be the worst one for corporate earnings recovery, due to coronavirus, all added positive sentiment to the market early. Shares of Boeing was also a major contributor to the Dow today as the FAA has begun its process for ungrounding the 737-MAX, which should occur in the early fourth quarter.
At the high, the Dow was up 345 points, half an hour after the opening bell. The Dow remained mostly at these elevated levels for most of the session, before losing some steam in the last hour of trading.
Today's rally was mostly positive and broad based with seven of the eleven S&P sectors closing with gains, led by Energy, Financials, Industrals, Consumer Staples, Basic Materials, Utilities, and Real Estate. Technology, Communication Services, and Consumer Discretionary, were the laggards.
Factors Influencing Today's Market
A massive 750 Euros recovery stimulus plan approved by the European Union.
Continued optimism regarding coronavirus vaccines, as researchers plan Type 3 Trials.
Better than expected earnings beats from IBM and Coca Cola.
Ebay sell its classified unit to Norway's Adevinta for $9.2 Billion.
Investors believe that the second quarter will be the worst of the recovery.
WTI crude oil closed at $41.63/barrel, up 1.96%.
US 10 Year Bond Yield closed at 0.605%, down 1.34%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks closed mixed. The Dow gained 159.53 points, Nasdaq lost 86.23 points, and the S&P added 5.46 point. Total NYSE volume traded, a moderate 4.60 billion shares. Advancing shares outpaced Declining shares by 3.21:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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