Friday's Market Recap - A Big Merger And The Potential For A Big Fiscal Stimulus Helped Stocks Soar.
What is The Premarket Telling Us?
7:00 AM.
On the last trading day of the week, US stock futures are moderately positive ahead of the start of trading. Dow futures are up 114 points, Nasdaq futures up 34 points, and S&P futures up 14 points.
On The Bond Desk:
The US 10 Year Bond Yield is mildly lower at 0.76%, down 0.02%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $40.79/barrel, down 0.97%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed overnight. Japan (Nikkei 225) %, Shanghai gained 1.68%, Hong Kong (Hang Seng) fell 0.31%.
Major European markets ended with gains. German (DAX) up 0.07%, France CAC 40 up 0.71%, London FTSE 100 up 0.65%.
Market And Sector Dynamics
Stocks surged higher at the start of trading. The Dow rose 125 points, Nasdaq rose 59 points, and S&P rose 17 points. WTI crude oil off to a modest start at $41.06/barrel, up 0.32%, and the US 10 Year Bond at 0.782%.
The on-again, off-again, big fiscal stimulus deal is still lurking in the background. A big merger deal is in the offering this morning, with AMD in advanced talks to buy Xilinx for $31 billion. Shares of semiconductor/chip companies are all trading higher on this merger news.Market breath is, a solid 5:1, advancing to declining shares.
At the high of the morning, the Dow was up 175 points, but pulled back shortly before 10:00 AM, on comments from Senate Leader, McConnel that more stimulus is needed, but he does not see it as a possibility before the elections. Investors did not like that new, so they sold the market, with the Dow up a mere 18 points, half an hour later.
Markets recovered sharply over the next two hours, and gaped even higher in the early afternoon, as fiscal stimulus was reported back on again, after news broke that the President now wanted a big deal. The Dow surged higher, up 240 points, at midday, the high of the session.
Eight of the eleven S&P sectors ended the day with gains, led by Technology, Consumer Discretionary, Healthcare, Consumer Staples, Communication Services, Basic Materials, Industrials, and Financials. Energy, Real Estate, and Utilities ended the session lower.
Factors Influencing Today's Market
Lingering optimism for a big additional fiscal Covid deal is on.
AMD is buying Xilinx in a deal worth $31 billion.
Asian markets closed mixed today, but European markets were higher.
US 10 Year Bond Yield ended today at 0.779%, unchanged from the last close.
WTI crude oil closed lower on today at $40.60/barrel, down 1.43%.
This week's Baker Hughes US Oil Rig count up 4 to 193 total.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's trading market were higher. The Dow gained 161.39 points, Nasdaq gained 158.96 points, and the S&P gained 30.30 points. Total NYSE volume traded, a modest 3.99 billion shares. Advancing shares outpaced Declining shares by 1.05:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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