Friday's Market Recap - Buyers Returned After Strong Employment Data And A Pull Back In Bond Yields.
- Mar 5, 2021
- 2 min read
What is The Premarket Telling Us?
7:00 AM.
Futures are flat to mixed at this hour. Dow futures are up 29 points, Nasdaq down 9 points, and S&P was up 2.25 points. Asian market ended lower overnight. Crude oil is getting a boost this morning after OPEC and other oil-producing countries have agreed to extend their existing production cuts.
On The Bond Desk:
The US 10 Year Bond Yield at 1.55%, up 0.08%.
Currency Desk:
Eurodollar: 1.19
UK Pound: 1.38
Crude Oil:
WTI crude oil futures at $65.46/barrel, up 2.55%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended lower on Friday. Japan (Nikkei 225) fell 0.23%, Shanghai slipped 0.04%, Hong Kong (Hang Seng) lost 0.47%.
Major European markets were also lower. German (DAX) lost 0.96%, France CAC 40 fell 0.82%, London FTSE 100 down 0.31%.
Market And Sector Dynamics
Markets opened the session convincingly higher, with the Dow surging 290 points, Nasdaq soared 134 points, and the S&P gained 39 points. WTI crude oil was off to a strong start, at $68.72/barrel, up 2.91%, while the now feared US 10 Year Bond ticked up to 1.589%. Investors are cheering this morning's employment reports showing 379K new job were created in February, compared to the 179K that was expected.The unemployment rate also fell to 6.20%.
Stocks sold off during the morning as the 10 Year Bond ticked higher, sending the Dow down 135 points shortly before 12:00 Noon. Markets recovered a few minutes later, a steady wave of buyers came in and pushed the Dow higher for the rest of the session, and into the close. At the high the Dow was up almost 700 points, a 900 point round trip from low to higher.
All eleven S&P sectors closed with gains in today's session, led by Energy, Industrials, Communication Services, Basic Materials, Consumer Staples, Healthcare, Technology, Utilities, Real Estate, and Consumer Discretionary.
Factors Influencing Today's Market
After opening sharply higher stocks pulled gave back all the gains by midday, but recovered, and surged higher in the afternoon.
February's unemployment report shows the economy gained 379K new jobs, with the unemployment rate fell to 6.2%.
Asian and European markets ended their sessions lower today.
US 10 Year Bond Yield closed at 1.577%, up 1.52%.
WTI crude oil closed at $66.09/barrel, up 3054%.
This week's Baker Hughes Oil Rig Count rose 1 rig to 310 total.
Market Close Volume Traded And Advance Decline Ratio
Markets rallied sharply higher in today's session. The Dow jumped 572.16 points, Nasdaq gained 196.68 points, and S&P gained 73.47 points. Total NYSE volume traded, a heavy 6.85 billion shares. Advancing shares outpaced Declining shares by 3.52:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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