Wednesday's Market Recap - Stock Rally On Blowout Salesforce Earnings Report.
What is The Premarket Telling Us?
7:00 AM.
US stock futures futures are flat to neutral at this hour. Dow futures up 56 points, Nasdaq up 38 points, and the S&P up 0.50 points.
On The Bond Desk:
The US 10 Year Bond Yield 0.68% vs up 0.03%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $43.18/barrel, down 0.39
On the Earnings Calendar:
Salesforce reported a blowout quarterly performance, sending share of the company sharply higher.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) down 0.03%, Shanghai fell 1.30%, Hong Kong (Hang Seng) ticked up 0.02%.
Major European markets closed higher today. German (DAX) gained 0.98%, France CAC 40 rose 0.80%, London FTSE 100 added 0.14%.
Market And Sector Dynamics
Stock futures opened the trading mixed. The Dow fell 41 points, Nasdaq gained 55 points, and the S&P rose 3 points. WTI crude oil started the day at $43.53/barrel, up 0.40%, while the US 10 Year was at 0.695%.
The Dow traded below the flat line for most of the morning session, hitting an intraday low down 95 points, around 11:30 AM. The market rebounded from there, back to positive territory, and continued to climb into the close.
A blowout quarterly performance from Salesforce.com, and the anticipation of an even more dovish statement from Fed Chair Powell tomorrow, who will speak at the annual virtual Jackson Hole meeting tomorrow, appear to have provided the major catalyst for today's session. Simultaneously, because of the markets limitless ability to rally, particularly the technology and communication services sectors, some investors are fearful that the market may be overbought.
Today's session was mostly balanced with 6 of the eleven S&P sectors closing in positive territory, led by Communication Services, Technology, Consumer Discretionary, Basic Materials, Consumer Staples, and Industrials. Energy, Utilities, Real Estate, Financials, and Healthcare were the laggards.
Factors Influencing Today's Market
Stellar quarterly results from Salesforce, with revenue rising 29% during the quarter.
Federal Reserve Chair, Jerome Powell will speak at the virtual Jackson Hole meeting tomorrow.
Communication Services and Technology were the outperforming sectors today.
US 10 Year Bond closed at 0.688% unchanged.
WTI crude oil closed at $43.41/barrel, up 0.14%.
This week's EIA Petroleum Status Report show US crude oil inventory fell 4.7 million barrels.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed stocks were sharply higher with the Nasdaq and S&P hitting new historical highs. The Dow gained 83.48 points, Nasdaq gained 198.59 points, and S&P gained 35.11 points. Total NYSE volume traded, a light 3.78 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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