Tuesday's Market Recap - A Mixed Session Driven By Technology And Strong Earnings From Home Depo
What is The Premarket Telling Us?
7:30 AM.
Moderately positive describes the status of US futures at this hour. Dow futures up 52 points, Nasdaq futures up 52 points, and S&P futures up 6 points. Markets are anticipating the release of quarterly earning for Home Depot and Walmart, before the opening bell this morning. Overnight, markets traded slightly higher.
On The Bond Desk:
The US 10 Year Bond Yield at 0.68%, down 0.03% or three basis points.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $42.76/barrel,
On the Earnings Calendar:
Strong quarterly earnings from Home Depot, where sales surged 23%, and Walmart.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were slightly higher. Japan (Nikkei 225) down 0.20%, Shanghai up 0.36%, Hong Kong (Hang Seng) added 0.08%.
Major European markets closed slightly lower today. German (DAX) down 0.30%, France CAC 40 down 0.68%, London FTSE 100 down 0.83%.
Market And Sector Dynamics
Strong quarterly earnings performance from Walmart, and Home Depot (sales up 23%). Boosted the pandemic lockdown. Five minutes into the session markets were modestly mixed. The Dow down 9 points, Nasdaq up 58 points, and the S&P up 8 points.
Strong quarterly earnings results released this morning for Home Depot, and Walmart both benefiting from a boost in Covid-19 stay at home sales.
Despite the strong earnings from both companies, stock sank lower, hitting the low of the day an hour after the open, with the Dow down around 160 point. Market trade off those lows, to just below the flat line, and remained at that level for most of the rest of the the session.
Shares of technology companies, Tesla, Amazon, Netflix, Apple, Microsoft, and Facebook traded higher, pushing the Nasdaq higher to another solid day of gains.
Market breath was fairly balance in the session. Seven of the eleven S&P sectors closed the session in negative territory, led by Energy, Financials, Industrials, Utilities, Basic Materials, Real Estate, and Healthcare. Consumer Discretionary, Communication Services, Technology, and Consumer Staples, were moderately higher in the session.
Factors Influencing Today's Market
Blowout quarterly earnings performance for Home Depot, and Walmart.
Investors learned today that Oracle is also bidding for TikTok, joining Microsoft and Twitter which were previously, announced.
July's Housing Starts, meaning permits to begin building rose a better than expected 1.496 million vs 1.240 million after bottoming in April.
US 10 Year Bond Yield closed at 0.670%, down 3.05%.
WTI crude oil closed $42.70/barrel, down 0.44%.
Market Close Volume Traded And Advance Decline Ratio
Today, markets ended mixed. The Dow lost 66.84 points, Nasdaq gained 81.12 points, and the S&P gained 7.79 points to close at an all time high, coming back from the low of March 23rd., the pandemic selloff. Total NYSE volume traded, a light 3.73 billion shares. Declining shares outpaced Advancing shares by 1.55:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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