Wednesday's Market Recap - Stock Rally Despite Weak ADP Payroll Report And A Fall In The Price O
What is The Premarket Telling Us?
7:00 AM.
Two and a half an hours before the start of trading, US stock futures are solidly in the green. Dow futures are up 201 points, Nasdaq futures up 122 points, and S&P futures up 24 points.
On The Bond Desk:
The US 10 Year Bond Yield 0.67%, up down 0.69%.
Currency Desk:
Euro dollar: 1.19
UK Pound: 1.33
Crude Oil:
WTI crude oil futures off to a positive start at $42.96/barrel, up 0.47%.
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) rose 0.47%, Shanghai down 0.17%, Hong Kong (Hang Seng) lost 0.26%.
Major European markets were sharply higher in their session, German (DAX) gained 2.07%, France CAC 40 up 1.90%, London FTSE 100 gained 1.35%.
Market And Sector Dynamics
Market opened higher. The Dow gained 115 points, Nasdaq gained 89 points, and the S&P rose 15 points. WTI crude oil is modestly up at $42.73/barrel, up 0.07%, and the US 10 Year Bond sits at 0.680%.
Markets spent most of the morning digesting a lower than expected ADP Private Payroll report which showed 428,000 private sector job were created, versus the 900,000 estimated.
Shares of Apple and Tesla also lost ground early, but reclaimed some of those losses during the session. While Apple and Tesla took a breather today, market participation seems to be broadening out, which is a good sign for the long term health of the market.
The market held the on to the early rally during the morning, then gaped higher in the early afternoon session, and gaped even higher, in the last hour of trading, hitting an intra-day high, Dow up more than 500 points.
The rally was broad based and market tone was positive, led by Utilities, Basic Materials, Real Estate, Communication Services, Healthcare, Consumer Staples, Industrials, Financials, Consumer Discretionary, and Technology. Energy was modestly lower in today's session.
Factors Influencing Today's Market
August ADP Employment report showed 428,000 new private sector jobs were created, and was less than the 900,000 expected.
This week's EIA Petroleum Status Report showed US crude oil inventory fell 9.4 million barrels, following a fall of 4.7 million barrels, in the prior week.
WTI crude oil closed today at $41.59/barrel, down 2.74%.
US 10 Year Bond Yield closed at 0.649%, down 3.38%.
Shares of Apple and Tesla fell in today's trading, losing around 2%, and 6% respectively.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the markets recorded another strong day of gains. The Dow surged 454.84 points, Nasdaq gained 116.78 points, and S&P gained 54.19 points. Both the Nasdaq and S&P are at new record highs. While the Dow is around 2% below it all time high. Total NYSE volume traded, a moderate 4.32 billion shares. Advancing shares outpaced Declining shares nearly 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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