Monday's Market Recap - Stocks Rally On Merger Deals, And A Dose Of Vaccine Optimism.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are sharply elevated at this hour. Dow futures are up 250 points, Nasdaq futures up 178 points, and S&P futures are up 41 points. Asian market were modestly higher, while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 0.67%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $37.26/barrel, down 0.19%.
On the Earnings Calendar:
None.
In M&A News:
Pharma company, Gilead, is adding to its cancer portfolio by purchasing Biotech company Immunomedics, in a deal worth $21 Billion.
Chipmaker, Nvidia has agreed to acquire Arm from Softbank in a deal worth $40 Billion.
What About The Asian And European Markets?
Major Asian markets ended with gains. Japan (Nikkei 225) up 0.65%, Shanghai up 0.57%, Hong Kong (Hang Seng) up 0.56%.
Major European markets mildly lower. German (DAX) down 0.07%, France CAC 40 up 0.35%, London FTSE 100 down 0.10%.
Market And Sector Dynamics
The markets got off to a frisky start, with the Dow surging 210 points, Nasdaq gained 156 points, and the S&P rose 33 points. Merger/acquisition news has dominated the market this morning, as we learn that Oracle's bid for ByteDance's TikTok has been accepted, instead of that from Microsoft and Walmart. We also learned that Nvidia has purchased Arm from SoftBank in a deal worth $40 Billion.
WTI crude oil stated the day off at $37.03/barrel, down 0.83%, and the US 10 Year Bond Yield sits at 0.668%.
Also helping to sustain positive markets sentiment this morning is a report that the Astrazeneca vaccine trial which was stopped last week, is set to resume globally shortly.
Stocks remained solidly higher for the entire trading session, with investors in a real risk on mood. At the high of the day the Dow was up 420 points, around ten minutes before the close.
The rally was broad based with all eleven S&P sectors ending the day with solid gains, led by Real Estate, Technology, Basic Materials, Healthcare, Financials, Industrials, Utilities, Consumer Discretionary, Energy, Consumer Staples, and Communication Services.
Factors Influencing Today's Market
Oracle bid for TikTok has been successful.
Chip-maker Nvidia is purchasing Arm from SoftBank in a deal worth $40 Billion.
Drug maker, Astrazeneca Covid-19 vaccine phase three clinical trial will continue, after being halted last week.
Pfizer announced that they will know if their covid-19 vaccine is safe by end of October. The company is also extending the number, and diversity of patients in its clinical trial to 37,000
US 10 Year Bond Yield closed at 0.676%, up 0.73%.
WTI crude oil closed today at $37.34/barre, down 0.29%.
Market Close Volume Traded And Advance Decline Ratio
When the market closed the Dow gained 327.69 points, Nasdaq gained 203.11 points, and S&P gained 42.57 points. Total NYSE volume traded, a light 3.89 billion shares. Advancing shares outpaced Declining shares better than 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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