Wednesday's Market Recap - Stocks Up On Vaccine & Stimulus Optimism And Improving US Data.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are moderately positive, with Dow futures up 186 points, Nasdaq futures up 33 points, and S&P futures up 18 points. Asian markets closed mild mixed overnight. Disney's earnings after the bell yesterday evening, is a positive for markets this morning, due to the strong 60 million subscriber growth number the company reported.
On The Bond Desk:
The US 10 Year Bond Yield 0.52%, down 0.04%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.30
Crude Oil:
WTI crude oil futures $42.80/barrel, up 2.64%.
On the Earnings Calendar:
Disney report better the first quarterly lost ever, but its Disney Plus subscriber growth was stunning. The company is well on the way to 100 million subscribers, well before 2024 as planned.
In M&A News:
Teladoc is acquiring Livongo the remote health monitoring company for $18.5 Billion.
Microsoft is hoping to close the TikTok deal in the next three weeks.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 0.26%, Shanghai up 0.17%, Hong Kong (Hang Seng) up 0.62%
Major European markets closed with solid gains. German (DAX) up 0.47%, France CAC 40 up 0.90%, London FTSE 100 up 1.14%.
Market And Sector Dynamics
Stock shot higher at the start of trading, the Dow surging 175 points, Nasdaq up 26 points, and the S&P up 14 points. The positive market sentiment being fueled by the likelihood a potential stimulus agreement, a dose of vaccine optimism after J&J announce a deal with the government to provide 100 million dose of their vaccine if approved.
WTI crude oil is on the move early, currently at $43.32/barrel, up 3.88%, and the US 10 Year at 0.536%.
Stock continued to climb after the open, and remained elevated for the entire trading session.
Eight of the eleven S&P sectors closed in positive territory, led by Industrials, Basic Materials, Financials, Consumer Discretionary, Energy, Healthcare, Technology, and Communication Service. Utilities, Real Estate, and Consumer Staples were lower.
Factors Influencing Today's Market
Congress and the administration continue negotiations on more stimulus in Washington.
Disney reported a weak quarterly earnings, but Disney Plus subscribers growth was stellar.
Johnson & Johnson inks deal with the US to provide 100 million of it covid-19 vaccines if approved.
Microsoft hoping to close TikToc deal in three weeks.
Teladoc, virtual medical services provider to acquire Livongo, the remote health monitoring company for $18.50 billion.
US 10 Year Bond Yield closed today at 0.518%, down 5.66%.
WTI crude oil closed today at $42.19/barrel, up 1.18%.
This week's EIA report shows US crude oil inventories fell 7.4 billion barrels.
ADP Private Employment Number for July added 167,000 vs 1.88 million estimated. 4.314 million were added in June.
July's PMI Services Index returned to expansion level at 50 vs 49. expected.
July's ISM Services Index was a better than expected 58.1 vs 55 expected.
Market Close Volume Traded And Advance Decline Ratio
When trading ended stock were higher. The Dow soared 373.05 points, Nasdaq gained 57.23 points, and S&P rose 21.26 points. Total NYSE volume traded, a moderate 4.57 billion shares. Advancing shares outpaced Declining shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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