Thursday's Market Recap - Dow And S&P End The Session And Year With New Record Highs.
Updated: Jan 3, 2021
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mildly higher at this hour, on the final trading day of 2020. Dow futures are up 14 points, Nasdaq futures up 17 points, Nasdaq up 3 points. Asian markets ended their session mixed.
On The Bond Desk:
The US 10 Year Bond Yield at 0.93%, unchanged since the last close.
Currency Desk:
Eurodollar: 1.22
UK Pound: 1.36
Crude Oil:
WTI crude oil futures at $47.54/barrel, down 0.95%
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 mixed. Japan (Nikkei 225) down 0.45%, Shanghai up 1.72%, Hong Kong (Hang Seng) up 0.31%
Major European markets closed lower. German (DAX) fell 0.52%, France CAC 40 down 0.86%, London FTSE 100 down 1.45%.
Market And Sector Dynamics
Stocks opened the last trading day of the year mostly flat, with the Dow down 11 points, Nasdaq gained 8 points, and the S&P up 0.26 (a fraction).
The market remained negative for most of today's session as investors grapple with skyrocketing covid cases in the US, the slow roll-out of vaccinations across the country, and the failure of Congress to increase the stimulus payout to $2000, in accordance with the President's post negotiation request. Per the Treasury Department, the already approved $600 payment could start hitting people's bank account as soon as today.
The market turned positive shortly after 2:00 PM, and soared higher convincingly into the close.
Nine of the eleven S&P sectors ended with gains in today's rally. Utilities, Financials, Real Estate, Healthcare, Communication Services, Consumer Staples, Industrials, and Basic Materials ended the session with gains, while Energy and Consumer Discretionary were the lagging sectors.
Factors Influencing Today's Market
A bump up in individual stimulus payment to $2000, is all but dead in the Congress.
Covid infections continue to skyrocket here in the US, and three people have now been diagnosed with the new more contagious strain of the virus.
The US will fall well short of its goal to vaccinate 20 million Americans by the end of 2020. As of today, only about 2.3 million Americans have been vaccinated.
US 10 Year Bond closed today at 0.916%, down 1.07%.
WTI crude closed today at $48.52/barrel, up 0.25%.
This week's Baker Hughes Oil Rig count rose 3 rigs to 267 total.
Market Close Volume Traded And Advance Decline Ratio
Markets ended with moderate gains to close out the final trading day of the year. The Dow gained 196.92 points, Nasdaq gained 18.28 points, and the S&P gained 24.03 points. Both the Dow and the S&P ended the day at new record highs. Total NYSE volume traded, a modest 3.19 billion shares. Advancing shares outpaced Declining shares by 1.48:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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