Wednesday's Market Recap - Vaccine Optimism And Strong Existing Home Sales Buoyed Stocks Today.
What is The Premarket Telling Us?
7:00 AM.
US stocks are modestly negative, two and a half hours before the market opens. Dow futures are down 88 points, Nasdaq futures up 18 points, and the S&P futures down 9 points. Overnight, Asian markets were slightly lower in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 0.61%, down 0.01%.
Currency Desk:
Euro dollar: 1.15
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $41.31/barrel, down 0.58%.
On the Earnings Calendar:
Snap missed earnings expectation after the close yesterday. The loss was in line with expectation, but Daily Active Users fell just short of expectations, sending shares of the company lower.
Microsoft, and Tesla reports after the closing bell today.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mostly lower. Japan (Nikkei 225) fell 0.58%, Shanghai up 0.37%, Hong Kong (Hang Seng) down 2.25%.
Major European markets ended the day modestly lower. German (DAX) fell 0.51%, France CAC 40 down 1.32%, London FTSE 100 down 1.00%
Market And Sector Dynamics
Stocks were mildly mixed at the open. The Dow fell 30 points, Nasdaq up 8 points, and the S&P was down 2 points. Investors are grappling with a new twist in China US tension, as the US has order the Chinese Consulate in Houston closed, in 72 hours, and as usual China has promised it will reciprocate by taking what it refers to as 'necessary measures.'
Vaccine optimism was another positive catalyst for markets today, as the Government and Pfizer announced a deal for the company to provide 100 million doses, as well as an option for another 500 million doses, should the Covid vaccine they are working on, proves successful, and is approved by the FDA.
Market turned higher, but was choppy throughout most of the morning and early afternoon session, before gaping higher after 2:00 PM, and into the close.
Nine of the eleven S&P sectors ended the day with gains, led by Utilities, Real Estate, Basic Materials, Healthcare, Technology, Basic Materials, Consumer Staples, Consumer Discretionary, and Communication Services. Energy and Financials were lower in the session.
Factors Influencing Today's Market
Vaccine optimism as Government strikes a deal with Pfizer.
US orders China Consulate in Houston to be evacuated in 72 hours.
Snap missed earnings and traded lower in the session.
Existing Home Sales for June increased 4.72% vs 3.90% in May, and -11.3% year over year.
US 10 Year Bond Yield ticked lower today closing at 0.600%, down 0.81%.
WTI crude oil closed the day at $41.90/barrel, down 0.14%.
Covid-19 infection continues to rise across the country, with California now overtaking New York, in the number of cases.
Market Close Volume Traded And Advance Decline Ratio
When the closing bell rang, the major indices were in positive territory. The Dow gained 165.44 points, Nasdaq gained 25.76 points, and the S&P was up 18.72 points. Total NYSE volume traded, a modest 4.31 billion shares. Advancing shares outpaced Declining shares by 1.41:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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