Friday's Market Recap - Strong Trading Week Base On Tesla, Apple, Split, Fed Move, Plus Strong C
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mixed on at this hour. Dow futures are up 100 points, Nasdaq futures off 17 points, and S&P futures up 7 points. Asian markets traded mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield is higher at 0.75%, up 0.06%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $43.07/barrel, up a modest 0.07%.
On the Earnings Calendar:
Dick's Sporting Goods, reported surprisingly strong second quarter earnings results. The company handily beat analyst revenue and earnings estimates, and saw online sales soar 194% in the quarter.
In M&A News:
Negotiations for the purchase of TikTok by Microsoft, and potentially Oracle continues. Yesterday investors learned that Walmart is teaming up with Microsoft on the deal.
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) fell 1.41%, Shanghai gained 1.60%, Hong Kong (Hang Seng) fell 0.56%.
Major European markets traded modestly lower in their sessions. German (DAX) fell 0.48%, France CAC 40 fell 0.26%, London FTSE 100 lost 0.61%.
Market And Sector Dynamics
The markets opened solidly higher. The Dow up triple digits 115 points, Nasdaq up 70 points, and the S&P up 9 points. WTI crude oil was slightly higher at $43.08/barrel, up 0.09%, and US 10 Year at 0.732%.
Stock traded in a narrow range above the flat line during the morning session, gaining added momentum during the afternoon session, and into the close.
The Fed's decision yesterday, to move to a 2% average inflation target, suggesting a dovish Fed posture for the forseeable future, remains a positive sentiment for the markets. Surprisingly earnings from Dicks Sporting Goods, new that the deal with TikTok, and Microsoft with a potential assist from Walmart, could be imminent.
Today's rally was broad based, and market tone was positive. All eleven S&P sector closed in positive territory, led by Energy, Basic Materials, Technology, Consumer Staples, Industrials, Real Estate, Consumer Discretionary, Financials, Communication Services, Utilities, and Healthcare.
Factors Influencing Today's Market
Solid earnings from Dick Sporting Goods, powered by soaring online sales.
Deal between TikTok and Microsoft with along with Walmart could be imminent.
Fed's move to average 2% inflation target to give economy time to recover.
US 10 Year Bond closed at 0.724%, down 3.90%.
WTI crude oil closed at $42.97/barrel, down 0.16%.
This week's US Oil Rig Count fell by 3 Rig to 180 total.
Apple and Tesla will trade on a split basis beginning Monday.
Market Close Volume Traded And Advance Decline Ratio
To close out the trading week, markets were again higher. The Dow gained 161.60 points, Nasdaq rose 70.30 points, and the S&P added 23.46 points. Total NYSE volume traded, a moderate 3.87 billion shares. Advancing shares outpaced Declining shares by 2.26:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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