Tuesday's Market Recap - Stock Rally On Strong Zoom Earning And Improving US Manufacturing Data.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly higher at this hour. Dow futures up 10 points, Nasdaq futures up 122 points, and S&P futures up 11.25 points.
On The Bond Desk:
The US 10 Year Bond Yield at 0.69%, down 0.03%.
Currency Desk:
Euro dollar: 1.19
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $43.08/barrel, up 1.10%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 0.01%, Shanghai up 0.44%, Hong Kong (Hang Seng) up 0.03%
Major European markets were also mixed. German (DAX) up 0.22%, France CAC 40 down 0.18%, London FTSE 100 down 1.70%.
Market And Sector Dynamics
Markets opened the session mixed. The Dow fell 119 points, Nasdaq gained 40 points, and the S&P fell 3 points. WTI crude oil at $43.02/barrel, up 0.92%, and the US 10 Year Bond at 0.718%.
The Dow turned around shortly after the open and gradually climbed higher throughout the entire session, driven by shares of technology, communication services, and basic materials, and industrials. Also helping markets early, was a solid final read for August PMI Manufacturing Index which came in at the higher end of the consensus range 53.1 vs 50.6 - 53.6. August ISM Manufacturing Index came in a strong 56. vs 54.6 estimated.
Six of the eleven S&P sector were responsible today's rally, led by Basic Materials, Technology, Consumer Discretionary, Communication Services, Industrials, Financials, and Consumer Staples. Utilities, Healthcare, Energy, and Real Estate.
Factors Influencing Today's Market
Strong US Manufacturing data was the major catalyst for stock today.
Blowout second quarter earning performance by Zoom. The company posted revenues of 300% year over year.
Talk of a skinny Pandemic stimulus package could start next week.
Investor confidence that the Fed is on the sidelines for an extended period.
Asian and European markets were mostly lower in their sessions.
US 10 Year Bond Yield closed at 0.672%, down 4.86%.
WTI crude oil closed at $43.06/barrel, up 1.06%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets were all higher, with the Dow up 215.61 points, Nasdaq up 164.21 points, (new record high), and S&P up 26.34 points, (new record high). Total NYSE volume traded, a moderate 4.08 billion shares. Advancing shares outpaced Declining shares by 1.68:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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