Wednesday's Market Recap - Dow Up On Strong Earnings & A Big Software IPO.
What is The Premarket Telling Us?
7:00 AM.
US stocks moderately up in the premarket. Dow futures up 71 points, Nasdaq futures up 75 points, and S&P futures up 21 points. Investors are anticipating results of the FOMC meeting which began yesterday.
On The Bond Desk:
The US 10 Year Bond Yield at 0.68%, up 0.67%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $39.21/barrel, up 2.43%.
On the Earnings Calendar:
FedX reported blowout quarterly results after the close yesterday. Shares of the company are surging higher.
Adobe also reported solid quarterly results. Shares of the company are up.
In M&A News:
Database software company Snowflake (SNOW) IPO begins trading today on the NYSE.Shares of the company was priced last evening at $120/share.
What About The Asian And European Markets?
Major Asian markets are mixed overnight. Japan (Nikkei 225) mildly up 0.09%, Shanghai down 0.36%, Hong Kong (Hang Seng) down 0.03%
Major European markets ended mixed today. German (DAX) up 0.29%, France CAC 40 up 0.13%, London FTSE 100 down 0.44%.
Market And Sector Dynamics
Markets got off to a moderate start this morning, driven largely a strong earnings performance from FedX, and Adobe reporting after the bell yesterday evening. The Dow gained 75 points, Nasdaq gained 34 points, and S&P rose 12 points. Crude oil is also solid up at $39.31/barrel, up 2.74%, and US 10 Year Bond Yield at 0.663%.
Also adding positive market sentiment is the debut of Snowflake IPO, the largest software IPO, as well as the largest IPO issue this year.
Stock gaped higher during mid-morning trading, the Dow up 225 points, and held at that level, before gaping even higher shortly after the announcement of the FOMC/Fed decision on interest rates, and Chairman Powell's press conference. Shortly before the Dow hit the intra-day high up 369 points. Markets began to lose momentum in the final hour of trading, as a wave of selling ensued, with the Dow holding on to a fraction of the day's gains into the close.
Markets were mostly balanced today, with six of the eleven S&P sectors ending with losses, led by Technology, Communication Services, Consumer Discretionary, Consumer Staples, Healthcare, and Utilities. Energy, Financials, Industrials, Real Estate, and Basic Materials, ended the day in positive territory.
Factors Influencing Today's Market
Database software company Snowflake IPO debut today. Shares priced a $120/share, closed at $253.93/share, up nearly 112%.
The Fed/FOMC left interest rates at existing level at their meeting ending today.
FedX reported blowout quarterly earnings performance.
US 10 Year Bond Yield closed at 0.698%, up 2.65%.
WTI crude oil closed higher at $40.22/barrel, up 5.07%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell by 4.4 million barrels.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading markets were mixed. The Dow gained 36.78 points, Nasdaq fell 139.86 points, S&P down 15.71 points. Total NYSE volume traded, a moderate 4.67 billion shares. Advancing shares outpaced Declining share by 1.60:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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