Friday's Market Recap - Following A Strong Open, Stocks Sold Off, Then Rallied To Finish Higher.
What is The Premarket Telling Us?
7:00 AM.
The futures are modestly higher at this hour, with Dow futures up 50 points, Nasdaq futures up 91 points, and the S&P up 5.50 points. Asian markets were mostly lower overnight.
On The Bond Desk:
The US 10 .Year Bond Yield at 0.54%, down 0.04%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $40.09/barrel, up 0.43%.
On the Earnings Calendar:
Apple, Amazon, Facebook, and Google reported strong quarterly earnings after the close, yesterday. Shares of all these companies, except Google are sharply higher in the premarket.
Drug maker, Merck and Caterpillar beat quarterly earnings expectations before the opening bell.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended mixed in today's trading. Japan (Nikkei 225) fell 2.82%, Shanghai added 0.71%, Hong Kong (Hang Seng) lost 0.47%.
Major European markets lost ground today. German (DAX) down 0.54%, France CAC 40 lost 1.43%, London FTSE 100 fell 1.54%.
Market And Sector Dynamics
Markets opened nicely modestly positive with the Dow up 48 points, Nasdaq up 143 points or 1.40%, and the S&P gained 17 points. WTI crude oil is down, early, currently sitting at $40.38/barrel, down 1.13%.
An hour after the open stock gave up just about all of the gains, as investor took profits, fearing that stocks may be overbought. Apple, Amazon, and Facebook, maintained their lofty levels, but Google, and other technology shares sold off. Intraday, the Dow was down more than 280 points in the early afternoon session, before rebounding gradually during the rest of the afternoon session, and gaping higher in the final hour of trading, to finish in positive territory.
Stock were mostly balance in today's trading, with six of the eleven S&P sectors ending with gains, led by Technology, Consumer Discretionary, Communication Services, Utilities, Basic Materials, and Financials. Energy, Healthcare, Industrials, Real Estate, and Consumer Staples ended modestly higher.
Factors Influencing Today's Market
Second quarter earnings season, so far, has been better than expected.
Strong earnings reports from four big technology companies after the closing bell yesterday: Apple, Amazon, Facebook, and Google shattered analyst expectations.
Caterpillar, and Merck also reported strong earning before the start of trading this morning, but Exxon and Chevron earnings disappointed investors.
The US 10 Year Bond Yield ticked lower again today to close at 0.533%, down 2.11%.
WTI crude oil closed back above forty dollar level, today at $40.27/barrel, up 0.88%.
This week's Baker Hughes US Oil Rig count fell 1 to 180 total.
Congress and the Administration has so far failed to come up with a deal for extending the $600/week unemployment benefits to individuals who have lost their job due to the pandemic.
Market Close Volume Traded And Advance Decline Ratio
Markets pulled a rabbit out of a to close higher today. The Dow gained 114.67 points, Nasdaq rose 157.46 points, and the S&P gained up 24.90 points. Total NYSE volume traded, a moderate 5.14 billion shares. Declining shares outpaced Advancing shares by 1.38:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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