Friday's Market Recap - Stocks Ended Mixed Better Than Expected Earnings Amidst Rising Covid Cases.
- Dec 11, 2020
- 2 min read
What is The Premarket Telling Us?
7:50
US stock futures are moderately lower on this final trading day of the week. Dow futures are down 190 points, Nasdaq futures down 92 points, and S&P futures down 27 points. Major Asian markets were lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield 0.910%, up 0.03%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $46.78/barrel, unchanged from previous close.
On the Earnings Calendar:
Lululemon reported solid quarterly earnings results.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) fell 0.39%, Shanghai lost 0.77%, Hong Kong (Hang Seng) up 0.36%.
Major European markets ended lower. German (DAX) down 1.36%, France CAC 40 down 0.76%, London FTSE 100 down 0.80%.
Market And Sector Dynamics
Markets opened the session moderately lower, with the Dow down 86 points, Nasdaq fell 68 points, and the S&P was down 15 points. WTI crude oil was mildly lower at $46.77/barrel, down 0.02%, while the US 10 Year Bond held at 0.910%, down 1.09%.
At its investor day conference yesterday Disney had great things to report, such as massive subscriber growth for its Disney plus platform, sending shares of the company more than 15% higher in early trading.
Across the pond, the possibility of a 'no-deal Brexit' looms large as negotiations with Boris Johnson and the European Union appear to be heading in the wrong direction. Increase Covid infections and Deaths is a concern for markets as well. On top of that, the US Congress appears deadlock on the possibility of a fiscal stimulus. Lululemom also handily beat quarterly earnings, but the market is in no mood to reward investors, at least not at this time. Right now the market's singular focus is on fiscal stimulus.
Stock meandered in negative territory for most of the trading session, before turning positive shortly before 2:00 PM and traded in a narrow range above the flat line into the close.
Seven of eleven S&P sectors lost modest ground in today's session, led by Energy, Financials, Basic Materials, Healthcare, Consumer Discretionary, Technology, and Real Estate. Communication Services, Consumer Staples, Industrials, and Utilities ended the session with modest gains.
Factors Influencing Today's Market
Disney reports stellar subscriber growth of over 86 million at its investor day conference.
Lululemon reported better than expected quarterly earnings.
Britain and the European Union could be heading for a no-deal Brexit.
US 10 Year Bond closed at 0.896%, down 1.09%.
WTI crude oil closed at $46.57/barrel, down 0.45%.
Baker Hughes US Oil Rig count rose 12 Rigs to 238 total.
Market Close Volume Traded And Advance Decline Ratio
When markets close for the week on Friday, the major indexes were mixed. The Dow rose 47.11 points, Nasdaq fell 27.94 points, S&P lost 4.64 points. Total NYSE volume traded, a moderate 4.45 billion shares. Declining shares outpaced Advancing shares by 1.38:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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