Friday's Market Recap - Modest Dow Rally As US Jobs Report Was Better Than Expected.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mostly lower this morning, as investors wait for the US Employment Status Report to showing July's employment data. Asian market closed lower.
On The Bond Desk:
The US 10 Year Bond Yield 0.533%, unchanged.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $41.97/barrel, down up 0.05%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets traded lower on Friday. Japan (Nikkei 225) down 0.39%, Shanghai down 0.96%, Hong Kong (Hang Seng) down 1.60%.
Major European markets ended modestly higher. German (DAX) up 0.66%, France CAC 40 rose 0.09%, London FTSE 100 up 0.09%.
Market And Sector Dynamics
Markets got off to a moderately negative start, with the Dow down 101 points, Nasdaq down 45 points, and the S&P down 12 points. The major indexes sank even further shortly after the open, which took the Dow down more than 175 points, the low of the session.
As the stimulus negotiation ebbed and flowed in Washington trading remained choppy during the entire session, except for half an hour before the close, when the Dow rallied back to positive territory, to close up for the day.
Market breath was broad based and positive. Eight of the eleven S&P sectors closed with gains, led by Financials, Utilities, Industrials, Real Estate, Consumer Staples, Basic Materials, Healthcare, and Energy. Technology, Consumer Discretionary, and Communication Services were the laggards.
Factors Influencing Today's Market
Stimulus negotiations in Washington broke down without an agreement, with the President vowing to take unilateral action.
Asian market were all lower, while European markets ended with modest gains.
US 10 Year Bond closed at 0.566%, up 5.17%.
WTI crude oil closed at $41.22/barrel, down 1.74%.
This week's Baker Hughes US Oil Rig Count fell 4 to 176.
The Department of Labor employment reports show the economy added back 1.783 million jobs, with the unemployment rate falling to 10.2%. This was better than expected, but less than the 4.791 million jobs added back in June. We still have a long way to go to get the unemployment rate back down to the below 4%, pre-pandemic level.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended mixed today as negotiations in Washington failed to reach an agreement on a new round of stimulus. The Dow gained 46.50 points, Nasdaq lost 97.09 points, and S&P added 2.12 points. Total NYSE volume traded, a modest 4.03 billion shares. Advancing shares outpaced Declining shares almost 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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